Broadcom’s AI Margin Warning Drags Chip Stocks, Crypto Miners Eye Fallout
Broadcom shares tumbled 4% post-earnings as CEO Hock Tan flagged thinner margins on AI chip sales compared to legacy products. The semiconductor bellwether's cautious outlook rippled across chipmakers, with AMD dropping 2% and TSMC slipping 1.5%.
Tan's dismissal of custom AI chips as a threat to Nvidia's dominance resonated in crypto circles. Miners tracking GPU prices noted the comments could prolong premium pricing for Nvidia's H100 series—a workhorse for ethereum validators and AI-driven blockchain projects.
The earnings miss coincides with sector-wide pressure as Bitcoin miners like Marathon Digital (MARA) and Riot Platforms (RIOT) face rising ASIC costs. Some mining pools are reportedly shifting to alternative coins like ETC and RVN to preserve margins.
