Microsoft vs. Broadcom: Which AI Stock Is a Better Buy?
Microsoft's revenue rose 17% to $81.3 billion in its fiscal second quarter of 2026, driven by Azure cloud computing, while Broadcom's revenue reached $19.3 billion, up 29% year over year, with AI semiconductor revenue skyrocketing 106%. Broadcom expects AI semiconductor revenue to surge 140% year over year to $10.7 billion in the current quarter.
Microsoft and Broadcom have diverged in 2026, with Microsoft down 12% and Broadcom up 22%. Microsoft's fiscal second-quarter revenue rose 17% to $81.3 billion, driven by its Azure cloud computing platform, which saw revenue jump 39%. However, Microsoft's capital expenditures were $37.5 billion. Broadcom's revenue reached $19.3 billion in its fiscal first quarter, up 29% year over year, with AI semiconductor revenue rising 106% to $8.4 billion. Broadcom expects AI semiconductor revenue to surge 140% to $10.7 billion in the current quarter. Microsoft's commercial remaining performance obligation hit $625 billion, up 110% year over year.
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