Broadcom vs. AMD: Which AI Chip Stock Will Outperform in 2026?

• AMD is looking to carve a niche successful the inference market.

• Broadcom has a monolithic accidental with customized AI chips.

• The stocks commercialized astatine akin valuations.

• 10 stocks we similar amended than Advanced Micro Devices ›

Two of the apical semiconductor companies looking to devour into Nvidia's (NASDAQ: NVDA) artificial quality (AI) infrastructure dominance are Broadcom (NASDAQ: AVGO) and Advanced Micro Devices (NASDAQ: AMD). Both stocks person performed good successful 2025, led by AMD, which is up much than 70% twelvemonth to date, arsenic of this writing, compared to astir a 45% summation for Broadcom.

The question, though, is which banal volition execute amended successful 2026. Let's look astatine the lawsuit for some stocks.

AMD is the distant No. 2 subordinate successful the graphics processing portion (GPU) marketplace down Nvidia. However, the institution has carved retired a bully niche successful inference, wherever price-per-inference costs are much important than earthy computing power, fixed its ongoing nature, and wherever Nvidia's CUDA bundle moat isn't rather arsenic wide. Importantly, inference is besides yet expected to go a overmuch larger marketplace than grooming implicit time.

Microsoft has already been moving connected a toolkit to person CUDA bundle codification to AMD's ROCm successful bid to usage much of AMD's GPUs for inference. Meanwhile, the institution struck a concern with OpenAI to deploy 6 gigawatts of GPUs, opening with 1 gigawatt adjacent year. As portion of the deal, OpenAI is besides taking a involvement successful AMD done warrants that vest based connected deployment milestones. It besides has a woody with Saudi Arabian institution Humain.

GPUs are not AMD's lone business, however. The institution is besides the starring supplier of cardinal processing units (CPUs), some successful computers and successful the information center. While GPUs supply the muscle, CPUs enactment arsenic the brain. The marketplace isn't arsenic ample arsenic the 1 for GPUs, but it is increasing quickly, and AMD has been taking stock successful the information halfway space.

Broadcom is attacking the AI spot marketplace overmuch otherwise than Nvidia and AMD. Instead of making GPUs, the institution helps customers plan customized AI ASICs (application-specific integrated circuits). These are preprogrammed chips that are hardwired for circumstantial tasks, and arsenic such, they tin some execute amended and beryllium much vigor efficient.

Broadcom helped Alphabet make its highly palmy Tensor Processing Units (TPUs), which person led to different large hyperscalers (owners of monolithic information centers) becoming customers. It has said its 3 furthest on customers could beryllium a much than $60 cardinal accidental successful its fiscal twelvemonth 2027 (ending October 2027), and a 4th customer, Anthropic, has placed a $21 cardinal bid for Alphabet's TPUs that it volition fulfill.