AVGO vs SMTC: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: AVGO is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AVGO and SMTC share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AVGO and SMTC exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Broadcom is one of the largest semiconductor companies in the world, plus a major enterprise software business after acquiring VMware in 2023. The semiconductor business has two main pieces. Networking and wireless silicon (Ethernet switches, optical components, custom ASICs for hyperscalers) is critical to AI data centers. Custom silicon (XPUs) for hyperscaler AI accelerators is a major growth driver: Broadcom designs custom AI chips for customers like Google (TPU), Meta (MTIA), and others.

Full AVGO guide

Semtech Corporation is a US-listed analog and mixed-signal semiconductor company based in Camarillo, California. Its business spans three broad areas: Signal Integrity, which sells high-speed interconnect chips (its CopperEdge active copper cables and FiberEdge and optical products aimed at AI data centers); Analog Mixed Signal and Wireless, which includes the LoRa low-power wireless platform that underpins many Internet-of-Things networks for smart utilities, buildings, and asset tracking; and Protection, which makes circuit-protection devices. The company controls the core LoRa and LoRaWAN standard through its patents and the LoRa Alliance, giving it a durable position in long-range IoT connectivity.

Full SMTC guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• AVGO drivers: Custom AI accelerators (XPUs) for hyperscalers; AI networking silicon.
• SMTC drivers: AI data center interconnect ramp; LoRa IoT franchise.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Customer concentration in custom AI silicon (top customers are Google, Meta, possibly OpenAI). For SMTC, semtech's valuation is stretched, trading at a very high multiple of revenue and earnings after a large run-up, so the shares can fall sharply if growth disappoints.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AVGO if you believe its drivers more; SMTC if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AVGO and SMTC guides.

AVGO. Broadcom's premium valuation reflects the combination of dominant networking semiconductor positions, fast-growing custom AI silicon revenue, and high-margin enterprise software from VMware. P/E of 45x is high but supported by the AI-driven revenue acceleration.

SMTC. Semtech's roughly $14.6 billion market capitalization against about $1.05 billion of trailing revenue works out to a very high multiple of sales, and reported EV/EBITDA has run near 90 times. Those figures reflect a stock that has re-rated on AI data center growth and priced in continued rapid expansion. Any shortfall versus guidance can move the shares meaningfully.

Headline figures (approximate, early 2026): AVGO shows revenue (ttm) ~$60 billion (combined semis and software), operating margin ~50%, net income (ttm) ~$20 billion, eps (ttm) ~$4.30; SMTC shows revenue (ttm) ~$1.05 billion, q1 fy27 net sales ~$291 million (record, +16% YoY), data center sales (q1 fy27) ~$71.6 million (record, +39% YoY), adjusted eps (fy2026) ~$1.71 (+94% YoY).

AVGO and SMTC are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AVGO and SMTC exposure against your real portfolio. It is not an investment adviser.