The battle for the future of artificial intelligence is intensifying as AMD (AMD) and Broadcom (AVGO) both surge to new heights. While AMD scorched Wall Street with a historic 13.91% jump on Friday, Broadcom is answering today with a massive influx of new contracts. Investors are no longer just picking one winner; they are funding a multi-billion dollar infrastructure race that is making the current stock prices look like just the beginning.
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AMD Focuses on the CPU
AMD is proving that the second phase of the AI boom belongs to the central processor. Following its record close of $347.81 last week, the stock is trading at $353.05 today. D.A. Davidson analyst Gil Luria set a new target of $375, noting that the shift toward “Agentic AI,” where programs act as independent assistants, requires a huge step-up for the CPU franchise.
He believes that the structural shift toward agentic AI workloads is creating unprecedented demand. This new type of workload is moving the industry toward a 1-to-1 ratio of CPUs and GPUs, which is a massive win for the AMD server business.
Broadcom Secures the World’s Largest Custom Silicon Deals
While others focus on general parts, Broadcom (AVGO) is leading the charge in custom chips. The firm recently announced a major expansion of its partnership with Google (GOOGL), agreeing to design upcoming versions of their AI processors through 2031. Broadcom also secured a massive deal with Anthropic, providing 3.5 gigawatts of compute capacity. Analysts estimate this could bring in $21 billion in revenue this year alone. Because the firm specializes in custom designs (ASICs), it has built a fortress that even the largest tech giants cannot easily cross.
Market Data Confirms Record-Breaking Performance
Both companies are winning, but they are doing it in different ways. Broadcom is known for its incredible profit margins, while AMD is currently gaining more market share in the high-profit server world. By the end of last year, AMD captured a huge 41.3% of total revenue in the server market, proving that customers are willing to pay more for its top-tier chips. Both firms are now essential to the plans of companies like Meta (META), which has secured a massive 6-gigawatt deal to power its future AI tools.
Which Stock Is a Better Buy, According to Analysts?
We utilized TipRanks’ Stock Comparison tool and found that both firms are currently top picks. While the market is moving fast, the data shows that AMD currently holds a slight edge in terms of overall analyst confidence and potential growth for the year ahead.
The data shows that AMD has earned a Perfect 10 Smart Score, which is the highest possible rating for a stock’s potential to beat the market. This Outperform rating is backed by a Strong Buy consensus from 34 different analysts. With an average price target of $375, the firm offers an attractive 14.8% upside from its current record-breaking levels.
Broadcom is also showing incredible strength with a Smart Score of 8, which also signals an Outperform outlook. The consensus for Broadcom remains a Strong Buy, with a target price of $545. This implies a 13.2% upside, showing that even as the stock reaches new highs, experts believe there is plenty of room left to grow as the company locks in more custom silicon deals.