Broadcom falls as margin pressures add to AI payoff jitters

Broadcom shares fell nearly 5% before the market open on Friday after the chipmaker said its margins would fall due to a higher mix of AI revenue, adding to worries about the payout from AI.

Investor optimism over the nascent technology has recently cooled amid bubble concerns, wiping out hundreds of billions in tech market value since late October. Adding to the worries, Oracle’s massive spending and weak forecasts fanned doubts over how quickly the big bets on AI will pay off, sparking a tech selloff in the previous session.