INTC Vs AMD Vs AVGO: Which Chip Stock Has Most Upside Amid Hot AI Rally?

• Chip stocks advanced sharply, with the key fund, iShares Semiconductor ETF (SOXX), on track for its best month since 2001.
• With major recent deal wins and a comparatively low P-E ratio, Broadcom stands out.
• Intel has rallied the most in the group in April, and yet analysts expect 22% upside in the stock.

Semiconductor stocks staged an incredible rebound in April, with the key sectoral fund, the iShares Semiconductor ETF (SOXX), heading for its best month since its launch in 2001.

The gain is being driven by Marvell Technology and Intel, each surging roughly 49% so far this month, while memory chipmakers continue to build momentum, with Western Digital, Seagate, and Micron advancing between 33% and 38%.

Investors are processing the sharp gains as they prepare for the quarterly earnings. Among the top chip stocks, a few still appear relatively attractive.

Amongst Intel, Advanced Micro Devices and Broadcom, analysts are recommending loading up on the latter two. The price-to-earnings (P/E) ratios of AMD and Broadcom are also more attractive than Intel's, which has the second-highest P/E ratio in the Nasdaq-100.

Why AVGO Stands Out

Broadcom is a standout in the group. The company recently expanded its partnership with Google and will now produce AI chips for the search giant through 2031. That came close on the heels of a similar deal with Meta Platforms, turning analysts more bullish on the chip-maker’s prospects, given the significant tie-ups with all major hyperscalers, which are funding the AI and data center boom.

Intel shares have rallied on a mix of AI narrative shift, deal momentum, and turnaround optimism. The chip maker has been showing progress in its foundry business – long a source of concern – with the release of PC chips using its advanced 18A process and a steady stream of high-profile partnerships across cloud and AI customers.

AMD, Nvidia’s primary rival in the AI server market, is rallying alongside broader optimism around AI-driven data center spending. Sentiment got a major boost in February when the company struck a $100 billion infrastructure and investment deal with Meta, while anticipation is building around its upcoming MI400 and MI450 processors.

Source: Koyfin

Here’s what analysts are expecting for their upcoming earnings:

Intel 
Results: April 23, after the market close
Revenue: $122.43 billion, down 2%
Profit: $0.01 per share, down 90%

AMD
Results: May 5, after the market close
Revenue: $9.87 billion, up 38%
Profit: $1.28 per share, up 33%

Broadcom
Results: TBA
Revenue: $22.06 billion, up 47%
Profit: $2.39 per share, up 51%

How Do Intel, AMD, Broadcom Chips Differ?

Intel, AMD, and Broadcom operate at very points in the semiconductor stack.

Intel is still one of the largest integrated device manufacturers (IDMs), meaning it designs and manufactures its own chips, with massive fabrication facilities and a broad footprint spanning PCs, servers, and increasingly foundry services for third parties. 

AMD, by contrast, is fabless – it designs chips but outsources manufacturing (primarily to TSMC). In terms of scale, Intel has historically led in revenue and manufacturing depth, but AMD has narrowed the gap in market value and influence through strong execution in CPUs and data center chips. 

Broadcom sits differently: it’s not a direct CPU competitor but a diversified semiconductor and infrastructure software giant, 

On products and sub-sectors, Intel and AMD overlap heavily in CPUs and data center processors, with AMD also strong in GPUs and AI accelerators. Intel is rebuilding its position in GPUs and AI chips. 

Broadcom, however, dominates in networking, connectivity, and custom silicon,  and makes chips for data center switching, broadband, Wi-Fi, and Bluetooth tailored for hyperscaler workloads.

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