Broadcom Inc.

NASDAQ Global Select
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Slightly Bullish +25

Broadcom Has Barely Moved in 2026. Should You Switch to AMD or Intel Now?

AI-generated analysis

📉 AVGO shares are up just 4.15% YTD, lagging AMD (141.79%) and Intel (226.15%) despite a strong semiconductor sector rally.

💰 Broadcom reported Q2 FY26 revenue of $22.19 billion, a 48% increase driven by $10.8 billion in AI semiconductor sales.

🚀 Management guided Q3 AI semiconductor revenue to $16 billion, implying growth exceeding 200% year-over-year.

📊 Broadcom trades at a P/E ratio of 59.88x, significantly lower than AMD's 172.61x and Intel's unprofitable status.

🔻 Insider selling occurred recently, with director Henry Samueli selling shares between $377 and $388 in late June.

📉 The stock closed July 2 at $360, down 25% over the past month following a late-June sector selloff.

🤝 AMD secured major AI infrastructure partnerships anchored by the MI450 GPU ramp-up.

🏭 Intel landed the host-CPU slot for next-gen AI systems and a multiyear custom ASIC partnership with a hyperscaler.

⚠️ Both AMD and Intel shares cooled recently, dropping 3% and 9% respectively over the past week.

📅 Broadcom is scheduled to report Q3 FY26 results in early September as the next major catalyst.

🎯 Wall Street analyst target price for Broadcom sits at $524, well above current trading levels.

🛡️ Broadcom maintains three distinct earnings pillars: custom AI accelerators, networking silicon, and VMware software.

Bullish Signals
  • Broadcom delivered Q2 FY26 revenue of $22.19 billion, representing a robust 48% year-over-year growth.
  • AI semiconductor revenue surged to $10.8 billion in Q2, up 143% year-over-year.
  • Q3 guidance projects AI semiconductor revenue reaching $16 billion, implying over 200% growth.
  • Broadcom trades at a P/E ratio of 59.88x, which is substantially lower than AMD's 172.61x multiple.
  • The company possesses three distinct and hard-to-replicate earnings pillars: custom AI accelerators, high-performance networking silicon, and the VMware software base.
  • Wall Street analyst consensus target price is $524, suggesting significant upside from current levels of approximately $360.
Risk Factors
  • Broadcom shares have underperformed significantly in 2026, rising only 4.15% YTD compared to massive gains for rivals AMD and Intel.
  • The stock price has fallen 25% over the past month, closing at $360 despite strong underlying revenue growth.
  • Recent insider selling activity includes director Henry Samueli selling a large block of shares between $377 and $388 on June 24.
  • Elevated expectations after 14 consecutive quarters of AI acceleration create a risk that any deceleration could severely impact the stock multiple.
  • The company has failed to translate its strong Q3 revenue guidance into share price appreciation, remaining below the $400 level.
Full Analysis
Broadcom (AVGO) has significantly underperformed its semiconductor peers in 2026, rising only 4.15% year-to-date compared to AMD's 141.79% and Intel's 226.15%. Despite the broader SOXX ETF gaining 85.73%, AVGO shares have stalled around $360, down 25% over the past month, even as the company reports robust financial results. The divergence between Broadcom's stock price and its fundamentals is driven by strong revenue growth that has not yet been fully priced in. Q2 FY26 revenue reached $22.19 billion with a 48% year-over-year increase, fueled by AI semiconductor sales of $10.8 billion. Management guided Q3 AI semiconductor revenue to $16 billion, implying over 200% growth, yet the stock remains below analyst target prices. Analysts and investors are weighing whether to rotate capital into higher-performing rivals like AMD or Intel, which trade at significantly higher P/E multiples of 172.61x and unprofitable status respectively. While Broadcom trades at a more reasonable 59.88x P/E ratio, insider selling activity from directors and executives has added downward pressure on the share price. The article concludes that investors should avoid simply chasing top performers during a sector-wide pullback. A cautious strategy suggests maintaining modest positions across all three names while waiting for Broadcom's Q3 earnings report in early September to determine if the stock can reclaim the $400 level amidst elevated expectations.