Broadcom Vs. Micron: Why They’re So Strong as Capital Shifts to Inference and Agentic AI

Broadcom and Micron Technology reported impressive financial results this quarter, reflecting the shift in capital towards inference and agentic AI workloads. Broadcom's AI semiconductor revenue grew by 143% to $10.8 billion, while Micron secured a staggering $100 billion in contracted memory revenue through five-year take-or-pay deals.

Micron's high-bandwidth memory (HBM4) is being produced at twice the rate of its predecessor, HBM3E, resulting in a record gross margin of 84.9% and a non-GAAP EPS of $25.11. Broadcom's Q2 revenue reached $22.2 billion, up 48% year-on-year, with AI semiconductor revenue growing at an astonishing 143%. The analyst who predicted NVIDIA in 2010 now lists Broadcom as one of his top 10 AI stocks, though it did not make the cut this time.

Micron, on the other hand, has locked in customers with five-year agreements, providing a cushion against market volatility. As the industry continues to build out AI infrastructure, Broadcom's networking mix and Micron's strategic semiconductor assets will be closely monitored.