Broadcom and AMD Duel for Nvidia Supremacy
Broadcom and AMD have been touted as potential Nvidia killers in the AI compute market. While both companies have seen explosive growth in their respective AI semiconductor revenue, only one can convincingly make a case for unseating Nvidia.
Broadcom's Q3 FY2026 report showed its AI silicon revenue reaching $16.7 billion, up 221% year over year and 54% sequentially. CEO Hock Tan believes custom silicon will outperform GPUs, citing his confidence in co-developing optimized chips for LLM workloads.
In contrast, AMD's Data Center segment reached $6.72 billion, up 107% YoY, driven by MI350 shipments and record EPYC sales. Lisa Su called it an 'excellent quarter' with record revenue and profitability.
The divergence in valuation reflects the different playbooks of Broadcom and AMD. Broadcom trades at a forward P/E of 20, while AMD sits at a forward P/E of 32, with a trailing multiple near 128.