Semiconductor companies like CRDO and AVGO are key players in the AI revolution, offering solutions for improved processing power. CRDO, an emerging growth story, focuses on high-speed connectivity solutions in AI and data centers. AVGO, a semiconductor giant, sees growth in AI semiconductor revenues and custom AI accelerators. Both companies present unique strengths for investors to consider.

CRDO is positioned for growth with its AEC business and optical solutions, expecting revenues to surpass $800 million in fiscal 2026. However, competitive landscape and global uncertainties pose risks, with customer concentration being a concern. AVGO, on the other hand, sees long-term tailwinds in AI semiconductor revenue growth and AI networking. Its diverse product portfolio acts as a buffer against cyclical shocks.

In terms of price performance, CRDO has gained 84.6% in the past three months, while AVGO has gained 28.6%. CRDO has a forward 12-month price/sales ratio of 22.56X, lower than AVGO’s 18.95X. Analysts have kept earnings estimates unchanged for both companies in the past 60 days. AVGO currently carries a Zacks Rank #2 (Buy), making it a potentially better pick compared to CRDO.

Read more at Nasdaq.: CRDO vs. AVGO: Which Data Center Connectivity Stock is the Better Buy?