Broadcom Inc. (AVGO) in San Jose, Calif., designs, develops, and supplies semiconductor infrastructure software solutions. It operates through two segments, Semiconductor Solutions; and Infrastructure Software. In comparison, Advanced Micro Devices, Inc. (AMD) in Santa Clara, Calif., operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded, and Semi-Custom.
The global semiconductor shortage exacerbated by rising COVID-19 cases in China and the Russia-Ukraine war has severely impacted the automotive and consumer electronics industries. However, robust demand has allowed companies to raise prices for their chips and generate substantial profits. Furthermore, rising government and private investments to address the supply crunch should help the industry grow significantly in the coming months. According to BlueWeave consulting, the global semiconductor market is estimated to grow at a 5.2% CAGR between 2022 and 2028. Therefore, both AVGO and AMD should benefit.
