Quick verdict: AMD vs AVGO in 2026

Broadcom (AVGO) currently holds a significant overall edge in this AMD vs AVGO stock comparison 2026, excelling across profitability, valuation, and analyst sentiment. Advanced Micro Devices (AMD) stands out as the growth leader with superior revenue expansion, while AVGO commands the lead in profitability with much higher margins and is favored by analysts. While both show positive analyst price target upside, AVGO’s DCF suggests less severe overvaluation compared to AMD. Not investment advice.

AMD vs AVGO: key metrics side by side

Full side-by-side comparison of AMD and AVGO across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-14.

AMD vs AVGO valuation comparison

When considering the AMD vs AVGO valuation, investors will observe a mixed picture that requires careful analysis of the underlying business models and future growth prospects. AMD trades at a P/E ratio of 95.88x, significantly higher than Broadcom’s (AVGO) P/E of 72.13x. This suggests that the market assigns a greater earnings premium to AMD, likely reflecting its higher revenue growth rate and perceived future potential in competitive markets like AI and data centers. From an earnings multiple perspective, AVGO appears relatively less expensive.

However, a look at the Price-to-Book (P/B) ratio presents a different angle, with AMD at a more modest 6.6x compared to AVGO’s much higher 22.55x. This indicates that AMD’s stock price is less inflated relative to its book value, potentially making it appear more “value-oriented” on this metric. Nevertheless, the Discounted Cash Flow (DCF) models paint a critical picture for both, with AMD showing a significant -74.2% undervaluation relative to its current price, while AVGO’s DCF suggests a less severe -35.6% undervaluation. This means both stocks are currently trading well above their intrinsic DCF values, but AVGO is less ‘overvalued’ by this method. Overall, for a comprehensive AMD vs AVGO fundamentals and valuation perspective, AVGO’s lower P/E and less negative DCF valuation might be more appealing to value-conscious investors despite AMD’s lower P/B.

AMD vs AVGO growth comparison

In the realm of growth, Advanced Micro Devices (AMD) clearly takes the lead in this AMD vs AVGO stock comparison 2026. AMD reported an impressive year-over-year revenue growth of +34.3%, significantly outpacing Broadcom’s (AVGO) +23.9% revenue growth. This indicates that AMD is currently experiencing stronger top-line momentum, driven by demand for its processors, graphics cards, and potentially its expanding presence in high-growth areas such as AI accelerators and data center solutions.

This superior revenue growth for AMD suggests a company actively capturing market share and expanding its operational footprint at a faster pace. While both companies are operating in the robust technology sector, AMD’s higher growth percentage reflects its ability to capitalize more effectively on current market trends and product cycles. For investors prioritizing aggressive expansion and market penetration, AMD’s growth trajectory appears more compelling, suggesting it has stronger momentum in driving sales, which could translate into future earnings growth despite its current profitability metrics.

AMD vs AVGO profitability

When examining AMD vs AVGO profitability, Broadcom (AVGO) demonstrates significantly superior operational efficiency and financial health compared to Advanced Micro Devices (AMD). AVGO’s net margin stands at an impressive 36.57%, which is substantially higher than AMD’s 12.51%. This wide disparity indicates that Broadcom is far more effective at converting its revenue into actual profit for shareholders, showcasing a more streamlined cost structure and potentially stronger pricing power within its diversified semiconductor and infrastructure software segments.

Further highlighting this difference is the EBITDA margin, where AVGO recorded a remarkable 57.0% against AMD’s 21.03%. The higher EBITDA margin for Broadcom suggests excellent operational leverage and stronger control over its core business expenses before accounting for interest, taxes, depreciation, and amortization. Both companies show N/A% for Return on Equity (ROE), indicating that this metric is not available from the provided data. However, in terms of Free Cash Flow (FCF) yield, AMD has a slight edge at 1.62% compared to AVGO’s 1.6%, implying very similar efficiency in generating cash from operations relative to enterprise value. Despite the similar FCF yields, AVGO’s significantly higher net and EBITDA margins undeniably position it as the company that generates considerably more profit and cash from its sales.

Analyst ratings: AMD vs AVGO

From an analyst perspective, both Advanced Micro Devices (AMD) and Broadcom (AVGO) currently hold a consensus “Buy” rating, reflecting general optimism for the semiconductor sector. However, the conviction levels vary when comparing AMD vs AVGO analyst ratings and recommendations. AMD is covered by 69 analysts, with 68.1% issuing a Buy recommendation. Their consensus price target for AMD is $295.82, which represents a potential upside of +16.0% from its current price.

In contrast, Broadcom (AVGO) enjoys a stronger endorsement from the analyst community. Out of 58 analysts covering AVGO, a substantial 89.7% have a Buy rating. The consensus price target for AVGO is set at $443.72, suggesting a slightly higher potential upside of +16.8%. This higher percentage of buy ratings for AVGO indicates a more widespread confidence among analysts regarding its future performance, business model stability, and potentially lower risk profile relative to AMD. While both stocks are seen favorably, analysts clearly show a preference for Broadcom based on these metrics.

Should I buy AMD or AVGO stock in 2026?

When deciding should I buy AMD or AVGO stock in 2026, growth investors might lean towards Advanced Micro Devices (AMD). With a robust year-over-year revenue growth of +34.3%, AMD is demonstrating strong momentum and actively expanding its market presence in key technology sectors. The company’s focus on high-performance computing, graphics, and AI acceleration positions it well to capture future opportunities, making it an attractive option for those seeking aggressive top-line expansion and potential for significant capital appreciation.

For value investors, Broadcom (AVGO) presents a more compelling case. While both stocks trade at high P/E multiples, AVGO’s P/E of 72.13x is notably lower than AMD’s 95.88x. More critically, AVGO’s Discounted Cash Flow (DCF) valuation, while still negative, is significantly less so at -35.6% compared to AMD’s -74.2%, suggesting a lesser degree of overvaluation from an intrinsic value perspective. Combined with its superior profitability margins (net margin 36.57% vs 12.51%), AVGO offers a more financially robust and arguably more “value-conscious” play within the high-growth technology space, despite AMD’s lower P/B ratio.

Regarding income, neither AMD nor AVGO are significant dividend payers, so investors looking for substantial income should consider other options. AMD has a 0% dividend yield, while AVGO offers a token 0.01% yield. Therefore, neither stock is suitable for income-focused portfolios. Ultimately, the choice between AMD and AVGO depends on an investor’s primary objectives: aggressive growth versus stable, highly profitable operations with a relatively more favorable valuation profile. This is not investment advice; always conduct your own thorough research.

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