Broadcom (AVGO) delivered strong financial results, with significant year-over-year growth in both semiconductor and infrastructure software segments, driven by AI demand. The company's custom chip business, particularly its XPU offerings for hyperscale customers, is a key growth driver. Despite a recent stock pullback of about 14% from its peak, Broadcom's strong financial performance, including robust revenue and profit growth, and a healthy balance sheet, suggests continued positive momentum. The infrastructure software segment, with its high gross and operating margins and perpetual license model, provides stability. Key risks include potential supply chain constraints and customer concentration, particularly with reliance on a few hyperscalers like Google, Meta, and Amazon. However, Broadcom's ability to customize hardware for specific workloads and its strong customer relationships suggest it is well-positioned to capitalize on the AI trend. AMD, on the other hand, is also seeing significant AI-driven upside, with its new MI300 chips targeting hyperscalers and AI workloads, aiming to capture accelerated computing growth.