INTC vs. AVGO: Which Chip Stock is a Better Buy for AI Infrastructure?

Intel Corporation INTC and Broadcom Inc. AVGO are two premier semiconductor firms focusing on AI (artificial intelligence) and advanced chip technologies. Intel is currently focusing on AI chips for data centers and PCs, which marks one of the largest architectural shifts for the company in 40 years. The strategic decision is primarily aimed at gaining a firmer footing in the expansive AI sector, spanning cloud and enterprise servers to networks, volume clients and ubiquitous edge environments, in tune with the evolving market dynamics. The foundry operating model is a key component of the company’s strategy and is designed to reshape operational dynamics and drive greater transparency, accountability and focus on costs and efficiency.

Broadcom primarily focuses on complex digital and mixed-signal complementary metal oxide semiconductor-based devices and analog III-V-based products. Its semiconductor solutions are largely used in set-top boxes, telecommunication equipment, data center servers and storage systems, data center networking, home connectivity, smartphones and base stations, alternative energy systems and electronic displays.

With growing AI proliferation in PCs, smartphones, automotive and IoT applications, both Intel and Broadcom are steadily advancing their semiconductor portfolio to bolster their competitive edge. Let us analyze in depth the competitive strengths and weaknesses of the companies to understand who is in a better position to maximize gains from the emerging market trends.

Intel is witnessing healthy traction in AI PCs that have taken the market by storm. The company has launched Intel Core Ultra series 3 processor (code-named Panther Lake) this month and is set to launch Xeon 6+ (code-named Clearwater Forest) in the first half of 2026. Manufactured in a new, state-of-the-art factory in Chandler, AZ, both products are built on Intel 18A, the most advanced semiconductor process in the United States. Panther Lake is designed to power a broad spectrum of consumer and commercial AI PCs, gaming devices and edge solutions. Clearwater Forest is an E-core server processor that enables business enterprises to scale workloads, reduce energy costs and power more intelligent services. 

Intel’s innovative AI solutions are set to benefit the broader semiconductor ecosystem by driving down costs, improving performance and fostering an open, scalable AI environment. It has secured a $5 billion investment from NVIDIA Corporation NVDA to jointly develop cutting-edge solutions that are likely to play an integral role in the evolution of the AI infrastructure ecosystem. Leveraging the core strengths of both firms, namely NVIDIA’s AI and accelerated computing and Intel’s CPU technologies and x86 ecosystem, the collaboration is expected to sow the seeds of innovation through the development of state-of-the-art custom data center and PC products. 

In August 2025, Softbank invested $2 billion in Intel to propel AI research and development initiatives that support digital transformation, cloud computing and next-generation infrastructure. The investment enabled Softbank to gain about 2% ownership in Intel, with the former paying $23 per share. This followed $7.86 billion in direct funding from the U.S. Department of Commerce under the U.S. CHIPS and Science Act to advance critical semiconductor manufacturing and advanced packaging projects in Arizona, New Mexico, Ohio and Oregon. The significant capital infusions have enabled Intel to expand its manufacturing capacity to accelerate its IDM 2.0 (Integrated Device Manufacturing) strategy.

However, Intel derives a significant part of its revenues from China. As Washington tightens restrictions on high-tech exports to China, Beijing has intensified its push for self-sufficiency in critical industries. This shift poses a dual challenge for Intel, as it faces potential market restrictions and increased competition from domestic chipmakers. The company is also lagging behind in the GPU and AI front compared to peers such as NVIDIA and Advanced Micro Devices, Inc. AMD. Leading technology companies are reportedly piling up NVIDIA’s GPUs to build clusters of computers for their AI work, leading to exponential revenue growth.