AVGO shares fell 5.8% over the past month, lagging the Zacks Computer and Technology sector's 5.1% decline. The article attributes pressure to gross margin erosion from a rising AI mix, supply constraints, a concentrated AI customer base and weak non-AI business. Non-GAAP gross margin fell 210 basis points to 75% in the third quarter and is expected to be about 73% in the fourth quarter, versus 78% a year earlier. Broadcom forecasts AI semiconductor revenue of roughly $58 billion in fiscal 2026, $115 billion in 2027 and $230 billion in 2028, supported by its Google TPU agreement through 2031 and planned deployments by Anthropic, OpenAI and Meta. Risks cited include reliance on a limited number of hyperscalers and rising competition from NVIDIA, AMD and others.
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