AVGO vs AMD Stock Comparison: AI Score, Valuation, Performance and Upside
Broadcom and AMD represent two different bets on how AI compute demand gets served outside of NVIDIA's dominant position: Broadcom via custom ASICs co-designed with specific hyperscalers, and AMD via general-purpose GPUs sold to a broader customer base as a direct NVIDIA alternative. Both benefit if hyperscalers want more supplier diversity, but through very different business models.
Broadcom's custom ASIC model offers deep, sticky relationships with a few large customers and high margins, while AMD's GPU strategy offers broader addressable market but tougher head-to-head competition with NVIDIA's software moat. Consider which model — bespoke silicon partnerships or merchant GPU competition — you believe captures more AI infrastructure spending over time.
AVGO holds the edge across 3 of 5 key metrics in this comparison. AMD has delivered stronger 1-year price return (+254.50% vs +3.55%), though AVGO has the better forward P/E setup (18.67x vs 33.28x for AMD). AVGO leads on both revenue growth (85.50%) and operating margin (54.31%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for AVGO (+46.92%) than for AMD (+19.17%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want exposure to custom AI silicon without needing AMD's head-to-head GPU competition with NVIDIA
- Value diversified revenue across semiconductors and enterprise software
- Believe hyperscalers will keep investing in custom ASICs to reduce merchant GPU costs over time
- Prefer a business with strong existing profitability and margin discipline
- Believe AMD can meaningfully close the gap with NVIDIA in AI GPU market share over time
- Want exposure to both data center AI and a recovering PC/gaming cycle
- See AMD's EPYC server CPU momentum as an underappreciated, profitable growth driver
- Are comfortable with higher execution risk in exchange for larger potential upside if GPU share gains materialize
| Metric | AVGO | AMD |
|---|---|---|
| AI scorei | 76.6 | 86.1 |
| AI ranki | #19 | #4 |
| Latest closei | $357.61 | $559.82 |
| 1M returni | -1.34% | +20.02% |
| 6M returni | +11.81% | +172.72% |
| 1Y returni | +3.55% | +254.50% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AVGO | AMD |
|---|---|---|
| 1Y ago | $10.36K (+3.6%) started 2025-09-18 | $35.45K (+254.5%) started 2025-09-18 |
| 5Y ago | $85.82K (+758.2%) started 2021-09-20 | $55.13K (+451.3%) started 2021-09-20 |
| 10Y ago | $359.3K (+3493.0%) started 2016-09-19 | $908.8K (+8988.0%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | AVGO | AMD |
|---|---|---|
| Market capi | $1.73T | $842.57B |
| Trailing P/Ei | 46.05 | 131.67 |
| Forward P/Ei | 18.67 | 33.28 |
| Price/Salesi | N/A | 24.30 |
| EV/Revenuei | 19.79 | 20.18 |
| Analyst targeti | $531.85 | $615.07 |
| Target upsidei | +46.92% | +19.17% |
| Metric | AVGO | AMD |
|---|---|---|
| Revenue growthi | 85.50% | 50.10% |
| Earnings growthi | 215.30% | 159.50% |
| EPS growthi | +215.30% | +159.50% |
| FCF margini | +34.34% | +21.41% |
| Operating margini | 54.31% | 17.25% |
| Profit margini | 42.94% | 15.58% |
| ROIC proxyi | 44.25% | 10.20% |
| Return on equityi | 44.25% | 10.20% |
| Dividend yieldi | 0.72% | N/A |
| Payout ratioi | 32.40% | 0.00% |
| Dividend growth streaki | No increase yet | N/A |
| Betai | 1.46 | 2.48 |
| Debt/equityi | 59.60 | 6.36 |
| Current ratioi | 2.50 | 2.61 |
| Quick ratioi | 2.15 | 1.69 |
Over the past year, AVGO and AMD have moved moderately in the same direction (correlation of 0.47), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | AVGO | AMD |
|---|---|---|---|
| 1Y | Growthi | +3.55% | +254.50% |
| CAGRi | +3.55% | +254.80% | |
| Volatilityi | 46.36% | 72.09% | |
| Sharpe ratioi | 0.21 | 2.06 | |
| Sortino ratioi | 0.30 | 3.54 | |
| Max drawdowni | 29.55% | 27.76% | |
| Current drawdowni | 25.74% | 3.63% | |
| Avg drawdowni | 13.74% | 11.64% | |
| Ulcer Indexi | 16.39% | 14.50% | |
| Max daily dropi | 12.59% | 17.31% | |
| Max wkly dropi | 22.35% | 23.67% | |
| 5Y | Growthi | +686.22% | +451.28% |
| CAGRi | +51.11% | +40.74% | |
| Volatilityi | 44.36% | 57.31% | |
| Sharpe ratioi | 1.05 | 0.80 | |
| Sortino ratioi | 1.65 | 1.24 | |
| Max drawdowni | 41.15% | 65.45% | |
| Current drawdowni | 25.74% | 3.63% | |
| Avg drawdowni | 10.58% | 29.10% | |
| Ulcer Indexi | 13.85% | 33.75% | |
| Max daily dropi | 17.40% | 17.31% | |
| Max wkly dropi | 22.35% | 23.91% | |
| 10Y | Growthi | +2598.00% | +8987.99% |
| CAGRi | +39.04% | +57.00% | |
| Volatilityi | 39.89% | 56.98% | |
| Sharpe ratioi | 0.92 | 1.00 | |
| Sortino ratioi | 1.37 | 1.54 | |
| Max drawdowni | 48.30% | 65.45% | |
| Current drawdowni | 25.74% | 3.63% | |
| Avg drawdowni | 8.62% | 21.42% | |
| Ulcer Indexi | 11.91% | 26.88% | |
| Max daily dropi | 19.91% | 24.23% | |
| Max wkly dropi | 31.75% | 32.68% |
| Category | AVGO | AMD |
|---|---|---|
| Company | Broadcom Inc. | Advanced Micro Devices, Inc. |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| Core business | Designs custom AI ASICs (co-developed with hyperscalers like Google and Meta), networking chips, and broad semiconductor and infrastructure software (via VMware) portfolios. | Designs CPUs and GPUs for data center, PC, and gaming markets, with its Instinct GPU line positioned as the primary alternative to NVIDIA for AI training and inference. |
| Investor focus | Custom AI ASIC revenue growth and customer pipeline, networking chip demand tied to AI clusters, and VMware software margin contribution. | Data center GPU revenue growth and market share versus NVIDIA, server CPU share gains against Intel, and gross margin trends. |
- Leading position in custom AI ASIC design, partnering directly with hyperscalers who want alternatives to merchant GPUs
- High-margin networking chip portfolio that benefits from AI cluster buildouts regardless of who wins the compute layer
- Diversified revenue base spanning semiconductors and enterprise software (VMware) that smooths cyclicality
- Strong server CPU franchise (EPYC) taking share from Intel, providing a profitable base business
- Instinct GPU line is the most credible merchant alternative to NVIDIA for AI workloads
- Growing hyperscaler partnerships for AI GPU deployment as customers seek to diversify away from a single supplier
- Custom ASIC revenue concentrated among a small number of hyperscaler customers
- Competition from NVIDIA's merchant GPU dominance and from AMD's GPU roadmap
- Integration execution and growth sustainability of the VMware software business
- Still a distant second to NVIDIA in AI GPU market share and software ecosystem maturity
- Execution risk in scaling GPU production and software support (ROCm) to match CUDA's ecosystem
- PC and gaming segment cyclicality affecting overall revenue stability
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