If you have $5,000 available to split between two chip stocks before their next earnings reports, I would use those funds to invest in Advanced microdevices (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO). Both companies are experiencing strong growth that should continue this current quarter and beyond.
AMD typically reports its fiscal first-quarter results in early May, while Broadcom won’t report its next results until early June. Investing $2,500 in each stock is a good starting point and gives investors plenty of time to build positions in these two semiconductor stocks.
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One of the reasons AMD is a solid stock to own ahead of its next earnings report is that the company is going to really start promoting its data center opportunity with central processing units (CPUs). The era of agent AI is just beginning to accelerate, and with it will come the need for many more CPUs to add sequential logic and workflow management capabilities to data centers. CPUs are also reportedly in limited supply due to the sharp increase in demand, which is leading to higher prices.
At the same time, AMD already has two major graphics processing unit (GPU) partnerships. The first deployments are expected to begin in the second half of 2026. Between its data center CPU opportunity and these GPU deals set to increase, I would expect AMD to issue strong guidance the next time it reports earnings, which is often a catalyst for stocks.
Broadcom has one of the biggest growth opportunities in AI infrastructure ahead, as customers begin to ramp up their production of custom AI chips. This is a huge opportunity, as the company projects $100 billion in sales of custom AI chips alone in its fiscal 2027. Meanwhile, Anthropic already has a $21 billion order for Alphabet‘s Tensor Processing Units (TPUs) that Broadcom will ship later this year.
However, this is only half of the AI ​​pie, and with those sales of AI chips will come the need for more network components, such as Ethernet switches, to connect them. Broadcom offers end-to-end connectivity and its networking business will also grow as AI chip groups grow in size. While investors are pretty attuned to Broadcom’s custom AI chip opportunity, I think its networking portfolio will really shine this coming quarter.