How this AMD vs AVGO comparison is calculated

All metrics are based on trailing twelve months (TTM) financial data, consensus analyst estimates, and standardized valuation ratios. Data is sourced from Financial Modeling Prep and SEC EDGAR. Figures are normalized to ensure a fair comparison between Advanced Micro Devices, Inc. and Broadcom Inc.. Analyst price targets and ratings are aggregated from Wall Street consensus as of 2026-05-19.

Quick verdict: Advanced Micro Devices, Inc. vs Broadcom Inc. in 2026

Advanced Micro Devices, Inc. (AMD) emerges as the leader in recent revenue growth, showcasing a significant expansion in its top line. Broadcom Inc. (AVGO), however, secures the edge in valuation, profitability, and overall analyst sentiment, presenting a more attractive earnings multiple and robust margins. With greater potential price target upside, AVGO appears to be the preferred choice among analysts, though AMD’s growth story remains compelling. Not investment advice.

Advanced Micro Devices, Inc. vs Broadcom Inc.: key metrics side by side

A full side-by-side look at Advanced Micro Devices, Inc. (AMD) and Broadcom Inc. (AVGO) across earnings multiples, profitability, revenue momentum, and analyst sentiment — data updated 2026-05-19.

Relative valuation: AMD vs AVGO

When assessing the relative valuation between Advanced Micro Devices, Inc. and Broadcom Inc., several metrics highlight a distinct divergence. Advanced Micro Devices, Inc. currently trades at a price-to-earnings (P/E) multiple of 133.49x, suggesting a premium attached by investors for its growth prospects. In contrast, AVGO commands a significantly lower earnings multiple of 78.06x, indicating a more attractive entry point based on current profitability. This price-to-earnings gap presents a notable distinction for value-focused investors.

Examining further, Advanced Micro Devices, Inc. boasts a price-to-book (P/B) ratio of 10.34x, which is considerably lower than Broadcom Inc.’s 24.41x, potentially making AMD appear more reasonably priced relative to its book value. However, a discounted cash flow (DCF) model suggests that Advanced Micro Devices, Inc. stock is significantly overvalued with a -87.5% discrepancy from its intrinsic value of $51.04. Broadcom Inc. also appears overvalued by the DCF analysis, but to a lesser degree at -52.1% from an intrinsic value of $197.01. Based on current consensus data, AVGO presents a comparatively more appealing valuation across earnings-based multiples and DCF estimates, despite AMD’s lower P/B.

Revenue momentum: Advanced Micro Devices, Inc. vs Broadcom Inc.

In the realm of revenue momentum, Advanced Micro Devices, Inc. has demonstrated a stronger recent topline expansion, posting a year-over-year growth rate of +34.3%. This vigorous increase outpaces Broadcom Inc.’s revenue growth of +23.9%, positioning AMD as the leader in sales acceleration based on the latest trailing twelve months data. This robust performance by Advanced Micro Devices, Inc. underscores its agility and success in capitalizing on market opportunities within the competitive semiconductor landscape.

However, a holistic view of operational efficiency, which can influence sustainable growth, reveals that Broadcom Inc. exhibits a substantially higher EBITDA margin of 57.0% compared to AMD’s 19.15%. While Advanced Micro Devices, Inc. shows impressive revenue gains, AVGO’s superior margin profile suggests a more efficient conversion of sales into operational profit. This gap in operational profitability may not persist indefinitely, especially if AMD’s aggressive revenue expansion begins to scale more efficiently. Investors focused purely on rapid sales increases might favor Advanced Micro Devices, Inc. stock, while those prioritizing profitable growth could lean towards AVGO.

Profitability and cash generation: AMD vs AVGO

When analyzing profitability and cash generation, Broadcom Inc. clearly demonstrates a stronger financial footing compared to Advanced Micro Devices, Inc. Broadcom Inc. achieved an impressive net margin of 36.57%, significantly outperforming Advanced Micro Devices, Inc.’s 13.33%. This substantial difference in bottom-line performance indicates AVGO’s superior ability to convert revenue into net income, highlighting its operational efficiency and pricing power within its market segments.

Furthermore, regarding free cash flow generation, Broadcom Inc. boasts a free cash flow (FCF) yield of 1.49%, slightly higher than AMD’s 1.29%. This indicates that Broadcom Inc. generates more cash relative to its market capitalization, a key metric for assessing a company’s financial health and its ability to fund future growth or return capital to shareholders. Both companies show N/A% for Return on Equity (ROE), preventing a direct comparison on that specific metric. However, the higher net margin and FCF yield suggest that AVGO is currently more effective at generating profit and cash relative to its sales and market value.

Wall Street view: Advanced Micro Devices, Inc. vs Broadcom Inc. analyst ratings

The Wall Street consensus paints a broadly positive picture for both semiconductor giants, but with a slight preference for Broadcom Inc. Of the 58 analysts covering AVGO, an overwhelming 89.7% have issued a ‘Buy’ rating for the stock. This strong endorsement translates into a consensus price target of $457.84, representing an attractive +11.4% potential upside from its current trading level. This widespread confidence suggests that the Street expects continued strong performance from Broadcom Inc.

Advanced Micro Devices, Inc. also enjoys significant analyst support, with 70.0% of the 70 analysts covering AMD recommending a ‘Buy’. The average price target for Advanced Micro Devices, Inc. stands at $434.96, indicating a +6.5% upside potential. While a respectable outlook, this projected upside is less pronounced than that of AVGO. The difference in ‘Buy’ percentages and target upsides suggests that, while both companies are favored, analysts perceive a greater short-to-medium term appreciation potential for Broadcom Inc. stock, though these targets may vary depending on future estimate revisions and market conditions.

Which investor profile fits AMD vs AVGO?

For the **growth investor**, Advanced Micro Devices, Inc. (AMD) presents a compelling narrative, primarily due to its leading revenue growth of +34.3% year-over-year. This rapid topline expansion suggests a company effectively capturing market share and innovating in high-demand segments like AI and data centers. While Broadcom Inc. (AVGO) also exhibits robust growth at +23.9%, Advanced Micro Devices, Inc. has shown a greater acceleration in sales, appealing to those prioritizing fast-paced expansion, even if it comes with lower current profitability margins.

The **value investor** seeking a more attractive entry point might lean towards Broadcom Inc. (AVGO). While both stocks trade at elevated valuations given their sector, AVGO’s P/E ratio of 78.06x is considerably lower than Advanced Micro Devices, Inc.’s 133.49x earnings multiple, offering a relative fundamental discount. Furthermore, Broadcom Inc.’s DCF model suggests a less severe overvaluation at -52.1% compared to AMD’s -87.5% discrepancy. However, AMD’s price-to-book ratio of 10.34x is more favorable than AVGO’s 24.41x, indicating that Advanced Micro Devices, Inc. might be better valued relative to its underlying assets, a point of consideration for specific value methodologies.

As for the **income investor**, neither Advanced Micro Devices, Inc. nor Broadcom Inc. stands out as a strong dividend play. Advanced Micro Devices, Inc. currently offers a 0% dividend yield, while AVGO provides a nominal 0.01%. Investors focused on generating regular income from their portfolios would likely find both AMD and Broadcom Inc. unsuitable for their primary objectives, as these companies prioritize reinvesting earnings for growth rather than returning substantial capital via dividends. This is not investment advice. Always do your own research.

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