Broadcom vs. Qualcomm: Buy One, Avoid the Other

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) and Qualcomm (NASDAQ:QCOM) both reported earnings recently, revealing a sharp divergence. Broadcom is riding a hyperscaler AI wave that keeps accelerating whereas Qualcomm is managing a slower pivot away from handset dependence while a memory supply crunch clouds the near term.

AI Servers Carry Broadcom. Snapdragon Faces a Speed Bump.

Broadcom posted $19.31 billion in Q1 revenue, up 29.5% year over year, powered by a semiconductor segment that grew 52% to $12.52 billion. The real engine was AI: custom AI accelerator and networking revenue hit $8.4 billion, up 106% and above the company’s own forecast. Free cash flow reached $8.01 billion, representing 41% of revenue.

Qualcomm’s quarter was solid but quieter. Total revenue came in at $12.25 billion, up 5% year over year, with the QCT semiconductor segment delivering a record $10.61 billion. Automotive stood out, hitting $1.10 billion for…