AI bellwether Broadcom shares fall 5% a day after results

LONDON, Dec 12 (Reuters) – Broadcom shares dropped 4.7% ​in Frankfurt on Friday ‌a day after the company ‌projected first-quarter revenue above Wall Street estimates, but said margins would fall due ⁠to a ‌higher mix of AI revenue.

That fall was ‍broadly in line with its U.S. after-hours move.

Broadcom has jumped ​into the AI chip ‌business, which has investors nervous about the profitability and costs of enormous investments.

The company has a backlog ⁠of $73 billion that ​it anticipates ​shipping over the next 18 months, CEO Hock ‍Tan said ⁠on a post-earnings call, but his lieutenant said ⁠profit margins could drop.

(Reporting by ‌Alun John; Editing by ‌Amanda Cooper )