AMD Poised to Ride AI Wave, Offering Higher Growth Potential Than Broadcom Despite Trailing in AI Chip Revenue
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AMD should benefit from AI adoption in data centers and PCs, with over $3.5B in AI revenue expected in 2024.
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Broadcom is the dominant player in custom AI chips, with $10B in AI revenue expected in 2024, making up 20% of total revenue.
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Broadcom faces challenges in other semiconductor markets that are declining.
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AMD has a higher expected earnings growth rate over the next 5 years compared to Broadcom.
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Despite higher AI revenue for Broadcom, AMD may be the better AI stock based on more attractive valuation and multiple avenues to tap the AI market.