r/valueinvesting
If I had to pick one AI semiconductor outside Nvidia today, I'd probably lean Broadcom over AMD.
Author prefers Broadcom over AMD for long-term AI exposure, citing Broadcom's diverse infrastructure roles and custom ASIC partnerships.
- AI infrastructure buildout benefits companies providing networking, custom ASICs, and software layers.
- Hyperscalers investing in custom AI chips partner with Broadcom rather than competing directly.
- AMD has strong execution with EPYC and Instinct GPUs, offering significant upside from a smaller base.
- Broadcom faces extremely high market expectations, creating a high bar for every earnings report.
This isn't because I think AMD is a lesser company. Quite the opposite, AMD has executed incredibly well over the last few years. EPYC has taken real server share, Instinct GPUs are finally getting traction with hyperscalers, and Lisa Su has built one of the best turnaround stories in tech.
But Broadcom feels like it's playing a different game. AMD is still largely competing to sell more chips. Broadcom is helping build the AI infrastructure itself. It sits behind networking, switching, custom AI ASICs, high-speed connectivity and now VMware giving it another software layer on top. The more AI clusters get built, the more places Broadcom seems to show up.
Companies like Google, Meta and now even OpenAI are investing heavily in their own AI chips. Broadcom isn't competing against those projects, it's helping build many of them. The recent OpenAI custom inference chip announcement was another reminder of that.
That doesn't mean that AMD can't keep winning. If MI350 and future Instinct generations continue improving, there's still a massive AI accelerator market to grow into. AMD probably has more upside if it keeps taking share because it's coming from a much smaller base.
I just think Broadcom has more ways to win. AI networking, merchant silicon, custom ASICs, VMware, enterprise infrastructure, it doesn't feel like the company is betting on one product cycle. It's almost becoming the "behind-the-scenes" company for AI infrastructure.
Ironically, the biggest risk for Broadcom might just be expectations. The market already knows it's an AI winner, so every earnings report gets judged against an incredibly high bar. AMD feels more like it still has something to prove, while Broadcom has to keep proving it over and over again.
If I had to own only one for the next decade, I'd probably take Broadcom. Not because I think it'll build the best AI chip, but because it seems determined to make money no matter whose AI chip ends up winning.
Nvidia, broadcom and TSM makes most sense to me at current valuations and estimated future cash flows/EPS growth.
I can definitely see that. Those three are all benefiting from AI, but in very different parts of the stack, Nvidia on compute, TSM on manufacturing, and Broadcom on networking/custom silicon. If AI capex stays strong, you don't necessarily need to pick one winner because they're all getting paid at different points in the value chain. That's a pretty compelling setup.
I sold all my AMD (200 shares) for Reddit yesterday.
If you follow Broadcom you would know the headwinds (triggerfish, CXL, DSP, SerDes) they are currently facing.
That's fair. Broadcom definitely isn't risk-free. Competition in SerDes is heating up, hyperscalers are pushing more custom silicon and technologies. But that's also why I like the company, they're usually investing in those transitions rather than getting blindsided by them. The AI networking, custom ASIC and software businesses still give them a lot of ways to win even if one product area gets more competitive.
How any qcom
They already secured terafab for 14a, google for TPUs and apple for 18A-P idk what other “major” external customers you are referring to, but more will come since TSMC increased prices, I find AVGO limited by DRAM and chip constraints same with nvidia and AMD.
Intel
Lmao
what about AMD?
Broadcom or NBIS?
Interesting one. I'd probably still lean Broadcom. NBIS has a lot going for it with GPU cloud infrastructure and the Nebius AI platform, but it's still in the 'prove you can scale profitably' phase. Broadcom already has multiple AI revenue engines, networking, custom ASICs, VMware and enterprise infrastructure. Different risk/reward profiles, but Broadcom feels like the more proven business today.
If the sentiment turns bad against the AI infrastructure names then yeah. But I believe there would be deals everywhere in that case, not just marvell.
My question on AMD v Broadcom is which firm has more margin from the final product as they seem to be overlapping capabilities except enterprise software - AI networking, merchant silicon, custom ASICs.
To be clear, on the product delivered to a datacenter rack what is Broadcom's share, and what is AMD's share?
I think Nvidia/AMD are similar on their share. Does Broadcom's deliver systems or chips?
AMD and Nvidia are primarily selling the compute layer, the GPUs that do the AI work. Broadcom is different. It sells the networking silicon, custom ASICs, PCIe/CXL connectivity, optical interconnects and other infrastructure that ties those GPU clusters together. They overlap in custom AI silicon, but Broadcom isn't trying to replace AMD's GPUs. It's trying to supply the plumbing that increasingly massive AI clusters can't function without. That's why I see them as complementary more than direct competitors.