Broadcom falls as margin pressures add to AI payoff jitters
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Broadcom shares fell nearly 5% due to margin pressures from a higher mix of AI revenue, adding to concerns about AI's payoff. Investor optimism has cooled amid bubble concerns, affecting tech market value. Oracle's spending and weak forecasts also contributed to the tech selloff. Analysts attribute the selloff to gross margin dilution from AI chips but remain unconcerned. Broadcom's strong demand for custom chips and a $73 billion backlog are noted, with projected first-quarter revenue above expectations.
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