Comprehensive Stock Comparison
Compare Advanced Micro Devices, Inc. (AMD) vs Broadcom Inc. (AVGO) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AMD | 34.3% revenue growth vs AVGO's 23.9% |
| Value | AMD | Lower P/E (29.5x vs 31.1x) |
| Quality / Margins | AVGO | 36.2% net margin vs AMD's 12.5% |
| Stability / Safety | AVGO | Beta 1.75 vs AMD's 2.08 |
| Dividends | AVGO | 0.7% yield; 15-year raise streak; AMD pays no meaningful dividend |
| Momentum (1Y) | AMD | +100.5% vs AVGO's +61.4% |
| Efficiency (ROA) | AVGO | 13.5% ROA vs AMD's 5.6%, ROIC 14.9% vs 4.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Advanced Micro Devices designs and sells high-performance computing and graphics processors for PCs, data centers, gaming consoles, and embedded systems. It generates revenue primarily from sales of CPUs (~50% of revenue) and GPUs (~30%), with the remainder coming from semi-custom chips for game consoles and embedded processors. AMD's key advantage is its competitive x86 CPU architecture and GPU technology that directly challenges market leader Intel in performance-per-dollar across multiple segments.
Broadcom is a semiconductor and infrastructure software company that designs and supplies critical components for data centers, networking, and connectivity. It generates revenue primarily from semiconductor sales (~70%) and infrastructure software licensing (~30%), with key segments including wired infrastructure, wireless communications, and enterprise storage. The company's moat lies in its deep engineering expertise, extensive patent portfolio, and entrenched positions in mission-critical infrastructure where customers face high switching costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
AVGO leads in 4 of 6 categories (Financial Metrics, Total Returns). AMD leads in 2 (Valuation Metrics, Profitability & Efficiency).
Financial Metrics (TTM)
AVGO is the larger business by revenue, generating $63.9B annually — 1.8x AMD's $34.6B. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to AMD's 12.5%. On growth, AMD holds the edge at +34.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | AMDAdvanced Micro De… | AVGOBroadcom Inc. |
|---|---|---|
| RevenueTrailing 12 months | $34.6B | $63.9B |
| EBITDAEarnings before interest/tax | $6.7B | $34.2B |
| Net IncomeAfter-tax profit | $4.3B | $23.1B |
| Free Cash FlowCash after capex | $6.7B | $26.9B |
| Gross MarginGross profit ÷ Revenue | +49.5% | +67.8% |
| Operating MarginEBIT ÷ Revenue | +10.7% | +39.9% |
| Net MarginNet income ÷ Revenue | +12.5% | +36.2% |
| FCF MarginFCF ÷ Revenue | +19.4% | +42.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +34.1% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +2.1% | +3.1% |
Valuation Metrics
At 67.0x trailing earnings, AVGO trades at a 11% valuation discount to AMD's 75.6x P/E. Adjusting for growth (PEG ratio), AVGO offers better value at 4.80x vs AMD's 14.62x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | AMDAdvanced Micro De… | AVGOBroadcom Inc. |
|---|---|---|
| Market CapShares × price | $326.3B | $1.52T |
| Enterprise ValueMkt cap + debt − cash | $325.3B | $1.56T |
| Trailing P/EPrice ÷ TTM EPS | 75.55x | 66.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 29.55x | 31.10x |
| PEG RatioP/E ÷ EPS growth rate | 14.62x | 4.80x |
| EV / EBITDAEnterprise value multiple | 48.56x | 44.06x |
| Price / SalesMarket cap ÷ Revenue | 9.42x | 23.71x |
| Price / BookPrice ÷ Book value/share | 5.20x | 19.08x |
| Price / FCFMarket cap ÷ FCF | 48.45x | 56.29x |
Profitability & Efficiency
AVGO delivers a 28.4% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $7 for AMD. AMD carries lower financial leverage with a 0.07x debt-to-equity ratio, signaling a more conservative balance sheet compared to AVGO's 0.80x. On the Piotroski fundamental quality scale (0–9), AMD scores 8/9 vs AVGO's 4/9, reflecting strong financial health.
| Metric | AMDAdvanced Micro De… | AVGOBroadcom Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +6.9% | +28.4% |
| ROA (TTM)Return on assets | +5.6% | +13.5% |
| ROICReturn on invested capital | +4.7% | +14.9% |
| ROCEReturn on capital employed | +5.7% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 4 |
| Debt / EquityFinancial leverage | 0.07x | 0.80x |
| Net DebtTotal debt minus cash | -$1.1B | $49.0B |
| Cash & Equiv.Liquid assets | $5.5B | $16.2B |
| Total DebtShort + long-term debt | $4.5B | $65.1B |
| Interest CoverageEBIT ÷ Interest expense | 32.68x | 8.09x |
Total Returns (with DRIP)
A $10,000 investment in AVGO five years ago would be worth $67,244 today (with dividends reinvested), compared to $23,175 for AMD. Over the past 12 months, AMD leads with a +100.5% total return vs AVGO's +61.4%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs AMD's 36.6% — a key indicator of consistent wealth creation.
| Metric | AMDAdvanced Micro De… | AVGOBroadcom Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -10.4% | -8.1% |
| 1-Year ReturnPast 12 months | +100.5% | +61.4% |
| 3-Year ReturnCumulative with dividends | +154.8% | +448.6% |
| 5-Year ReturnCumulative with dividends | +131.8% | +572.4% |
| 10-Year ReturnCumulative with dividends | +9255.6% | +2389.2% |
| CAGR (3Y)Annualised 3-year return | +36.6% | +76.4% |
Risk & Volatility
AVGO is the less volatile stock with a 1.75 beta — it tends to amplify market swings less than AMD's 2.08 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | AMDAdvanced Micro De… | AVGOBroadcom Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.08x | 1.75x |
| 52-Week HighHighest price in past year | $267.08 | $414.61 |
| 52-Week LowLowest price in past year | $76.48 | $138.10 |
| % of 52W HighCurrent price vs 52-week peak | +75.0% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 43.4 | 44.2 |
| Avg Volume (50D)Average daily shares traded | 31.0M | 21.0M |
Analyst Outlook
Wall Street rates AMD as "Buy" and AVGO as "Buy". Consensus price targets imply 46.5% upside for AMD (target: $293) vs 38.9% for AVGO (target: $444). AVGO is the only dividend payer here at 0.72% yield — a key consideration for income-focused portfolios.
| Metric | AMDAdvanced Micro De… | AVGOBroadcom Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $293.26 | $443.72 |
| # AnalystsCovering analysts | 69 | 57 |
| Dividend YieldAnnual dividend ÷ price | — | +0.7% |
| Dividend StreakConsecutive years of raises | 0 | 15 |
| Dividend / ShareAnnual DPS | — | $2.30 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | +0.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Advanced Micro Devi… (AMD) | 100 | 518.9 | +418.9% |
| Broadcom Inc. (AVGO) | 100 | 1,161.79 | +1061.8% |
Broadcom Inc. (AVGO) returned +572% over 5 years vs Advanced Micro Devi… (AMD)'s +132%. A $10,000 investment in AVGO 5 years ago would be worth $67,244 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Advanced Micro Devi… (AMD) | $4.3B | $34.6B | +702.0% |
| Broadcom Inc. (AVGO) | $13.2B | $63.9B | +382.5% |
Advanced Micro Devices, Inc.'s revenue grew from $4.3B (2016) to $34.6B (2025) — a 26.0% CAGR. Broadcom Inc.'s revenue grew from $13.2B (2016) to $63.9B (2025) — a 19.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Advanced Micro Devi… (AMD) | -11.5% | 12.5% | +208.5% |
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
Advanced Micro Devices, Inc.'s net margin went from -12% (2016) to 13% (2025). Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Advanced Micro Devi… (AMD) | 57.7 | 80.8 | +40.0% |
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
Advanced Micro Devices, Inc. has traded in a 45x–278x P/E range over 8 years; current trailing P/E is ~76x. Broadcom Inc. has traded in a 9x–189x P/E range over 9 years; current trailing P/E is ~67x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Advanced Micro Devi… (AMD) | -0.6 | 2.65 | +541.7% |
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
Advanced Micro Devices, Inc.'s EPS grew from $-0.60 (2016) to $2.65 (2025). Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025).
Chart 6Free Cash Flow — 5 Years
Advanced Micro Devices, Inc. generated $7B FCF in 2025 (+109% vs 2021). Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021).
AMD vs AVGO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is AMD or AVGO a better buy right now?
Broadcom Inc. (AVGO) offers the better valuation at 67.0x trailing P/E (31.1x forward), making it the more compelling value choice. Analysts rate Advanced Micro Devices, Inc. (AMD) a "Buy" — based on 69 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — AMD or AVGO?
On trailing P/E, Broadcom Inc. (AVGO) is the cheapest at 67.0x versus Advanced Micro Devices, Inc. at 75.6x. On forward P/E, Advanced Micro Devices, Inc. is actually cheaper at 29.5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Broadcom Inc. wins at 2.23x versus Advanced Micro Devices, Inc.'s 5.72x.
03Which is the better long-term investment — AMD or AVGO?
Over the past 5 years, Broadcom Inc. (AVGO) delivered a total return of +572.4%, compared to +131.8% for Advanced Micro Devices, Inc. (AMD). A $10,000 investment in AVGO five years ago would be worth approximately $67K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AMD returned +92.6% versus AVGO's +23.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — AMD or AVGO?
By beta (market sensitivity over 5 years), Broadcom Inc. (AVGO) is the lower-risk stock at 1.75β versus Advanced Micro Devices, Inc.'s 2.08β — meaning AMD is approximately 19% more volatile than AVGO relative to the S&P 500. On balance sheet safety, Advanced Micro Devices, Inc. (AMD) carries a lower debt/equity ratio of 7% versus 80% for Broadcom Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — AMD or AVGO?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus 12.5% for Advanced Micro Devices, Inc. — meaning it keeps 36.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AVGO leads at 39.9% versus 10.7% for AMD. At the gross margin level — before operating expenses — AVGO leads at 67.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is AMD or AVGO more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Broadcom Inc. (AVGO) is the more undervalued stock at a PEG of 2.23x versus Advanced Micro Devices, Inc.'s 5.72x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Advanced Micro Devices, Inc. (AMD) trades at 29.5x forward P/E versus 31.1x for Broadcom Inc. — 1.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMD: 46.5% to $293.26.
07Which pays a better dividend — AMD or AVGO?
In this comparison, AVGO (0.7% yield) pays a dividend. AMD does not pay a meaningful dividend and should not be held primarily for income.
08Is AMD or AVGO better for a retirement portfolio?
For long-horizon retirement investors, Broadcom Inc. (AVGO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.7% yield). Advanced Micro Devices, Inc. (AMD) carries a higher beta of 2.08 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AVGO: +23.9%, AMD: +92.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between AMD and AVGO?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. AVGO pays a dividend while AMD does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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