Why Bearish?

Despite positive revenue forecasts, falling margins from AI revenue could cause investor concerns, similar to past tech earnings where profitability was prioritized over top-line growth.

How important is it?

The news directly relates to AVGO's financial performance, specifically impacting investor perception on profitability.

Why Short Term?

Immediate market reactions tend to factor in margin concerns quickly after announcements, potentially influencing short-term trading behaviors.

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