Analyst: Broadcom demand remains concentrated

Barringer pointed out that although the faster-growing chip division at Broadcom has lower profit margins, overall demand remains strong. He stated that this shift will dilute Broadcom's profitability, as the company needs to generate more revenue to achieve the same level of profit. Barringer added that, more broadly, the company's performance is positive, but Broadcom is struggling to meet and surpass the market's high expectations. Broadcom's pre-market share price fell by more than 12%.