Broadcom miss sparks fears around AI margin pressure, investor says

STORY: Wall Street advanced on Thursday but disappointing results from Broadcom led a chip selloff that held the Nasdaq's gains in check.Broadcom's revenue expectations sent its shares tumbling and cast a pall over the AI frenzy, which has sent chip stocks soaring so far this year."Traders, investors in the markets are anticipating potentially falling margins in the future because of the shift in Broadcom's business," said Rathbun. "Now, this actually has implications for the rest of AI."Rathbun also said rising expenses tied to infrastructure, partnerships and raw materials could eventually create margin pressure if companies are not able to pass those costs on to customers.