Broadcom shares fall as margin warning sparks AI payoff worries

A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration

Dec 12 (Reuters) - Broadcom shares fell more than 11% on Friday after the chipmaker warned growing sales of lower-margin custom AI processors were squeezing profitability, sparking worries that the business may be less lucrative.

The warning on margin impact deepened investor jitters over Big Tech's AI returns, a day after Oracle fell 10.8% due to high capital spending for a debt-funded AI infrastructure buildout.