AMD vs. Broadcom: Which AI Stock Has the Bigger Upside Potential?

Driven by rising artificial intelligence (AI) and Data Center demand, both Advanced Micro Devices, Inc. AMD and Broadcom Inc AVGO have benefited. But AMD’s 124.6% year-to-date gains significantly outperformed Broadcom’s 3.3%. However, with both companies positioned to capitalize on the continued AI growth, the question now is which stock offers greater upside potential from here. 

The Bullish Case for AMD Stock 

According to AMD’s Aug. 4 press release, the company’s revenues reached $11.5 billion in the second quarter of 2026, up 50% year over year and 13% quarter over quarter. In particular, Data Center revenues were strong, more than doubling year over year (read more: Advanced Micro Q2 Earnings: How Key Metrics Compare to Wall Street Estimates). 

AMD further expects revenues to reach $13 billion, plus or minus $300 million in the third quarter of 2026. At the midpoint, that would represent 41% year-over-year growth and a 13% sequential increase. Data Center sales are also expected to gain momentum in the second half of 2026. 

Strong revenue growth is expected as demand for AMD’s EPYC server processors continues to increase. The company’s Instinct accelerators are also scaling rapidly, while the Helios platform has entered its initial ramp-up phase. At the same time, the company is expected to deliver revenue growth alongside expanding margins. 

AMD expects a healthy non-GAAP gross margin of 56% in the third quarter, highlighting continued profitability improvement. All things considered, AMD is entering the second half of 2026 with strong growth potential. 

The Bullish Case for AVGO Stock 

Broadcom’s AI semiconductor business continues to deliver excellent growth. The company’s AI semiconductor revenues reached $10.8 billion in the fiscal second quarter of 2026, up 143% year over year, according to its June 3 press release (read more: Broadcom Q2 Earnings Call Spotlights AI Demand Surge). 

The momentum is projected to remain strong, with Broadcom expecting AI semiconductor revenues of $16 billion in the fiscal third quarter of 2026, up more than 200% year over year. Consolidated revenues are also expected to reach $29.4 billion, up 84% year over year. This follows record consolidated revenues of $22.2 billion in the fiscal second quarter, representing 48% year-over-year growth. 

The strong revenue outlook suggests that Broadcom’s AI business is entering a multi-year growth cycle rather than a temporary surge. Growth is expected to continue as demand for Broadcom’s graphics processing units, including custom AI accelerators and AI networking solutions, increases. 

Broadcom also continued to demonstrate strong profitability. The company generated an adjusted EBITDA of $15.2 billion in the fiscal second quarter, resulting in an adjusted EBITDA margin of 69%. The company expects to maintain an EBITDA margin of approximately 68% in the fiscal third quarter, underscoring high profitability as revenues continue to surge. 

AMD or Broadcom: Which AI Stock Has Greater Upside 

Rising EPYC and Instinct sales, coupled with strong revenue growth and expanding margins, support a bullish outlook for AMD stock. Broadcom also remains a strong AI play, fueled by surging AI semiconductor revenues and growing demand for custom accelerators and networking solutions.  

However, Broadcom’s strong performance has already boosted investors’ expectations, potentially limiting further upside if the company fails to surpass the sky-high expectations. On the other hand, accelerating Data Center demand and expanding AI opportunity give AMD more room for future gains. 

AMD also appears better positioned than Broadcom in a technical setup. Its shares are currently trading above the 200-day moving average (DMA), signaling stronger long-term price momentum. 

Technical Indicator & Overlays – AMD

Image Source: Zacks Investment Research

Broadcom’s shares, meanwhile, are trading below the 200-DMA, indicating comparatively weaker long-term price momentum.

Technical Indicator & Overlays – Broadcom

Image Source: Zacks Investment Research

Therefore, at present, AMD appears to have greater upside potential than Broadcom, while both continue to benefit from strong underlying fundamentals. AMD and Broadcom currently have a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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