Broadcom’s first-quarter revenue projected above estimates but margins expected to fall due to higher AI revenue mix, causing shares to drop 5%. The company has a backlog of $73 billion to ship over 18 months, with CFO expecting margins to decrease by approximately 100 basis points sequentially due to AI revenue mix. Analysts express concern about lower margins for AI system sales and costs related to chip manufacturer TSMC. Broadcom’s AI semiconductor revenue expected to double to $8.2 billion in fiscal Q1. Company forecasts quarterly revenue of about $19.1 billion, higher than analysts’ average estimate of $18.27 billion. The company reported revenue of $18.02 billion for the fourth quarter.

Read more at Yahoo Finance: Broadcom sees dip in quarterly margins due to AI, shares fall