Broadcom posted first-quarter revenue of $19.31 billion, up 29.5% from a year earlier, as its custom AI accelerator and networking business surged to $8.4 billion. Qualcomm reported revenue of $12.25 billion, a 5% increase, but the two companies told very different stories about where the semiconductor market is headed.
For Broadcom, the quarter was another proof point that its avgo bet on AI infrastructure is working. The company said its semiconductor segment grew 52% to $12.52 billion, free cash flow reached $8.01 billion and adjusted EBITDA margin was 68%. It also secured a long-term TPU and networking supply agreement with Google through 2031 and reiterated a target of exceeding $100 billion in AI sales by 2027, an ambition that has helped fuel investor focus on the stock.
Qualcomm, by contrast, is still leaning on businesses that move more slowly and carry more uncertainty. Its QCT semiconductor segment delivered record revenue of $10.61 billion, automotive revenue reached $1.10 billion for a second straight quarter above $1 billion, and handset revenue came in at $7.82 billion. The handset unit remains the company’s biggest anchor, even as the chipmaker tries to broaden beyond it. Qualcomm’s Alphawave Semi acquisition opens a data center segment, and its automotive ADAS and IoT businesses are growing, but the company is still managing a gradual pivot away from handset dependence.
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That gap shows up in the market. Broadcom trades at 28 times forward earnings, and 47 of 49 analysts rate it buy or strong buy. Qualcomm trades at 11 times forward earnings, but 22 of 36 analysts rate it hold or worse. Broadcom was down 3.31% year to date, while Qualcomm was down 26.99%, a sharp split for two names that once moved more in tandem.
The contrast is more than a quarterly snapshot. Broadcom is riding a hyperscaler AI wave that has made its custom silicon and networking products central to the buildout, while Qualcomm is still exposed to handset cycles and the risk that Apple replaces Snapdragon modems with in-house silicon. Broadcom’s VMware infrastructure software segment grew just 1%, so it remains a source of recurring revenue rather than a growth engine. For investors, the key question is whether Broadcom can keep turning AI demand into sustained scale while Qualcomm proves it can make its diversification efforts matter before the old handset model slows further.
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Hock Tan projects Avgo stock $100 billion AI chip revenue by 2027.
