Broadcom Rides AI Semiconductor Growth: Can it Beat NVDA & AMD?

Broadcom's AI semiconductor revenues jumped 143% to $10.8B in Q2 fiscal 2026, with $16B expected in Q3, driven by custom XPU demand from hyperscalers and six core AI customers. However, the company faces intensifying competition from NVIDIA and AMD, which are expanding into complete AI infrastructure platforms. Despite strong growth, AVGO stock trades at a premium valuation and carries a Zacks Rank #3 (Hold) rating.