AVGO's Gross Margin Contracts Sequentially: Is Growth Getting Harder?

Key Takeaways AVGO gross margin fell to 77% in 1Q'26, extending a four-quarter sequential decline trend. AI-driven Semiconductor growth is shifting mix, pressuring gross margin despite 106% AI revenue surge. AVGO expects $22B Q2 revenues, with AI at $10.7B and Semiconductor sales jumping 76% y/y. Broadcom’s (AVGO) gross margin has contracted sequentially in the trailing four quarters. In the first quarter of fiscal 2026, the company reported a gross margin of 77% compared with 77.9% reported in the fourth q ...