AMD Projects 32% Revenue Growth While Broadcom Holds 47.3% Margin, Software Stocks Rally 14%
AMD forecasts 32% revenue growth guidance for fiscal 2026, versus Broadcom’s 29%, while posting a 14.7% net profit margin compared with Broadcom’s 47.3%. Software stocks in the IGV ETF jumped 14% last week, outpacing semiconductor ETF SOXX’s 7.5% gain and signaling renewed investor appetite for cloud and growth names.
1. AMD vs Broadcom Profitability Comparison
AMD has set fiscal 2026 revenue guidance at 32%, outpacing Broadcom’s 29% outlook, but trails significantly on profitability with a 14.7% net margin versus Broadcom’s 47.3%. The disparity underscores investor focus on AMD’s ability to expand margins through higher ASPs or cost efficiencies to enhance its valuation.
2. Software Sector Rebound and Semiconductor Impact
The iShares Expanded Tech-Software ETF (IGV) surged 14% last week, surpassing the 7.5% rise in the semiconductor-focused ETF (SOXX). This rotation highlights renewed confidence in cloud and growth-oriented names, suggesting that semiconductor makers like AMD could face sector-wide headwinds if the software rally sustains.