Custom-ASIC mix
low
med
high
Revenue-leverage offset
low
med
high
The margin bridge: custom-ASIC mix vs revenue leverage
Custom-ASIC ramp adds data-center revenue but at lower gross margin; the revenue-leverage offset decides whether operating margin lifts and the quality gap with Broadcom narrows or widens.
custom-ASIC ramp accelerates data-center revenue — at a margin cost
custom-ASIC ramp
lower margin · adds revenue
electro-optics
AI networking · higher margin
reported gross margin
mix can compress
margin dilution
revenue leverage
operating margin
the number to watch
quality gap
widens
quality gap
narrows
leverage offsets dilution