AMD Forecasts 32% Revenue Growth but 14.7% Margin Lags Broadcom's 47.3%
AMD set 2026 revenue growth guidance at 32% versus Broadcom's 29% and reported a 14.7% net profit margin compared to Broadcom's 47.3%. Over the five days to April 17, the iShares Expanded Tech-Software Sector ETF surged 14%, outpacing the semiconductor ETF's 7.5% gain and underscoring sector rotation.
1. Revenue Growth and Profit Margin Comparison
AMD set its 2026 revenue growth guidance at 32%, outpacing Broadcom's 29% forecast, but its current net profit margin of 14.7% remains far below Broadcom's 47.3%, highlighting a gap in operational efficiency that could influence investor valuation of chipmakers.
2. Software Sector Rally and Semiconductor ETF Performance
Between April 11 and 17, the iShares Expanded Tech-Software Sector ETF climbed roughly 14%, while the semiconductor ETF rose about 7.5%, illustrating a shift in investor preference toward software that may create headwinds for AMD and other hardware-focused firms.