Regarding stocks tied to the semiconductor industry, investors may look to either Advanced Micro Devices (NASDAQ: AMD) or Broadcom (NASDAQ: AVGO). Each of these companies has generated considerable returns over the last few years. Moreover, both chip stocks are fabless companies that rely heavily on Taiwan Semiconductor to make their products.
Nonetheless, each company pursues different markets, and consequently, returns have varied significantly. Hence, when comparing the businesses and financials of the companies, one might stand out as the more suitable investment.
AMD and Broadcom are different kinds of chip companies. AMD specializes in central processing units (CPUs) and graphics processing units (GPUs). To that end, it focuses on client computing (meaning PCs), gaming, and data centers, giving it a heavy consumer focus.
Source Fool.com