Broadcom vs. Qualcomm: Rapid Growth vs. Flat Revenue
Key Points
Broadcom currently demonstrates stronger overall revenue performance than Qualcomm by a considerable margin, leading the comparison in all recent comparable periods.
Broadcom has delivered consistent quarter-over-quarter revenue growth over the last eight quarters, while Qualcomm has reported comparatively stable but slightly declining revenue patterns during the same period.
Investors should carefully watch whether the expanding revenue gap between the two companies continues to widen or if the differing growth trajectories begin to align in upcoming quarters.
Broadcom: Rapid Revenue Acceleration
Broadcom (NASDAQ:AVGO) supplies advanced semiconductor solutions and critical enterprise infrastructure software to global hardware and networking manufacturers.
While facing detailed operational inquiries from European Union antitrust officials regarding recent software licensing modifications, it introduced new enterprise artificial intelligence software tools and expanded a long-term collaboration with Samsung.
Qualcomm: Gradual Revenue Declines
Qualcomm (NASDAQ:QCOM) develops and licenses foundational wireless communication technologies and integrated circuits for mobile devices and telecommunication networks.
It renewed a global patent license agreement with Apple, and it established a new multi-generational collaboration with Amazon, focusing on advanced data center infrastructure.
Why Revenue Matters for Investors
Revenue here refers to the data provider's standardized income statement revenue line item, which represents the total amount of money a business collects before deducting any operating expenses.
Quarterly Revenue for Broadcom and Qualcomm
| Calendar quarter | Broadcom Revenue | Qualcomm Revenue |
|---|---|---|
| Q3 2024 | $14.1 billion (quarter ended Nov. 3, 2024) | $10.2 billion (quarter ended Sept. 30, 2024) |
| Q4 2024 | $14.9 billion (quarter ended Feb. 2, 2025) | $11.7 billion (quarter ended Dec. 29, 2024) |
| Q1 2025 | $15.0 billion (quarter ended May 4, 2025) | $11.0 billion (quarter ended March 30, 2025) |
| Q2 2025 | $16.0 billion (quarter ended Aug. 3, 2025) | $10.4 billion (quarter ended June 29, 2025) |
| Q3 2025 | $18.0 billion (quarter ended Nov. 2, 2025) | $11.3 billion (quarter ended Sept. 28, 2025) |
| Q4 2025 | $19.3 billion (quarter ended Feb. 1, 2026) | $12.3 billion (quarter ended Dec. 28, 2025) |
| Q1 2026 | $22.2 billion (quarter ended May 3, 2026) | $10.6 billion (quarter ended March 29, 2026) |
| Q2 2026 | $29.6 billion (quarter ended Aug. 2, 2026) | $9.9 billion (quarter ended June 28, 2026) |
Foolish Take
Between the two stocks, I believe Broadcom is the chip stock better positioned to deliver higher returns.
Indeed, Broadcom's 48 P/E ratio may compare poorly to Qualcomm's earnings multiple of 21 on the surface.
Nonetheless, Broadcom delivered $29.6 billion in revenue in its latest quarter, an 86% increase from the year-ago period. The company has thrived as the demand for its AI accelerators and high-speed networking gear has spiked.
In contrast, Qualcomm's $9.9 billion in revenue for the latest quarter actually fell by 4% year over year. That company is in the midst of a transition away from its past dependence on smartphone chipsets into other types of semiconductor products.
Admittedly, Qualcomm seems to have gained some traction with an Amazon deal described as a "multi-generational product collaboration" to build the next generation of AI data center infrastructure. If that deal and others restore revenue growth, investors may need to pay closer attention to Qualcomm.
Nonetheless, that move is in the early stages, and its success is not yet certain. Thus, Broadcom's proven track record likely makes it the stock of choice for now.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Broadcom, and Qualcomm. The Motley Fool has a disclosure policy.