AVGO · News · 20260920N

Gross Margin Drivers

Broadcom Inc. · 2026-09-20 · Importance 26 · Surprise 24

Broadcom’s custom-chip product mix is pressuring gross margins. Higher memory content in the products is contributing to the margin pressure. Increasing memory costs are intensifying the effect on gross margins, while operating leverage is sustaining EBIT margin expansion.

Key facts

• Broadcom Inc.'s custom chip product mix is pressuring gross margins due to higher memory content, which is getting more expensive. source