AMD vs. Broadcom: With NVDA’s Jensen Huang Gone, Which AI Stock Wins the Most?
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Which AI chip stock belongs in a retirement-focused portfolio right now—AMD (NASDAQ:AMD | AMD Price Prediction) or Broadcom (NASDAQ:AVGO)—with Jensen Huang out at NVIDIA (NASDAQ:NVDA)? Huang resigned on November 12, 2026 after reports of personal misconduct and a board investigation, and CFO Colette Kress became interim CEO. AMD and Broadcom stock got a boost from Nvidia’s loss, then both sold off on Friday. AMD fell 8.75% to $534.06, and Broadcom fell 4.76% to $347.01.
Each company stands to gain from NVIDIA’s problems in a different way. AMD sells Instinct GPUs that compete head-on with NVIDIA’s chips. Broadcom co-designs custom accelerators for hyperscalers and supplies the networking that connects them. The comparison below covers three areas, and if you want the longer view on what the next monster chip winner tends to look like early, we put the pattern in a free Next Nvidia playbook.
Valuation: Broadcom Is the Cheaper Way to Own AI Growth
AMD trades at a trailing P/E of 202, a forward P/E of 35 and 130.79 times free cash flow. Its free cash flow yield is 0.76%. On CNBC’s Fast Money, one guest put it bluntly: “AMD is the priciest of the three, but if you look at Broadcom and Micron, they’re still trading at a much lower multiple.” Broadcom produced $13.67 billion[1] of free cash flow in a single quarter, which gives its $1.656 trillion market cap real earnings support. Winner: Broadcom.
Income and Cash Flow: Broadcom Pays You While You Wait
For retirees, this is the clearest gap between the two. Broadcom declared a $0.65 per share[1] quarterly dividend on September 2, 2026. In fiscal Q3, free cash flow rose 94.5%[1] and was 46% of revenue. Non-GAAP EPS of $3.32[1] extended its beat run to 9 consecutive quarters.
AMD shareholders receive no dividend. Its Q3 free cash flow fell 70.9%[2] to $554 million as capex jumped 151% and inventory rose to $11.46 billion. Its balance sheet is still sound, with net cash and 28.2x interest coverage. Winner: Broadcom.
Growth Trajectory: AMD Has the Most Direct Path to NVIDIA’s Customers
If AI labs move GPU orders away from NVIDIA, AMD is the obvious place for them to go. Data Center revenue reached $8.55 billion[2], up 97%, and the segment’s operating margin expanded to 34% from 25%. Anthropic, Meta, Microsoft, OpenAI, and Oracle are already running Helios racks. AMD guided Q4 revenue to about $17 billion[2], roughly 66% growth. CEO Lisa Su said, “It is true that demand is higher than supply,”[3] and expects 2027 revenue to grow more than 80%.
Broadcom’s AI semiconductor revenue reached $16.70 billion[1], and management guided to $21.7 billion for the next quarter. That figure covers custom XPUs and networking, so it should not be compared directly with AMD’s Data Center segment. Those gains depend on just six XPU customers[4]. AMD wins this category because a reallocation of GPU orders benefits it most directly, although NVIDIA’s CUDA software remains a real barrier to switching. Winner: AMD.
Verdict: Broadcom Is the Retirement Pick, by a Narrow Margin
Broadcom wins. Customers that reduce their reliance on NVIDIA without cutting AI spending will still need custom silicon and Ethernet networking. Gartner named Broadcom a leader in custom AI silicon, and its $8.75 billion[1] quarterly infrastructure software business adds diversification that AMD lacks. The dividend, the cash flow margin, and the lower multiple all give it the edge for retirement accounts.
AMD wins for younger growth investors who can live with a 2.542 beta and a 52-week range of $188.22 to $658.52. If hyperscalers move large GPU orders away from NVIDIA, AMD will likely outperform.
Both stocks carry the same broader risk. NVIDIA helped finance many of its own customers, so a break there could slow AI spending across the industry, including at both companies. Broadcom’s dependence on a small group of hyperscaler customers is the main risk to the Broadcom case.
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After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years, he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, Money Morning, and, of course, 24/7 Wall St. He has been featured in both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.
