An upbeat quarter doesn’t seem like enough to send Broadcom’s stock higher after a strong run so far this year.

The chip designer reported rapid revenue growth as demand continues to rise for chips to fill the data centers that power artificial-intelligence models.

Broadcom shares fell more than 11% on Friday after the chipmaker warned growing sales of lower-margin custom AI processors were squeezing profitability, sparking worries that the business may be less lucrative.

Broadcom on Thursday said its AI revenue will double in the current quarter, but shares slumped as investors focused on narrowing margins after a major run-up in the stock price.

Goldman Sachs analyst Kash Rangan lowered its price target to $220 from $320, while maintaining a neutral rating. Rangan cited modest reported revenue growth and noted that higher capital expenditures and free cash flow burn increased concerns over Oracle’s growing financial needs.

Investors pulled back from the chip firm despite beating Wall Street’s expectations for quarterly earnings and revenue.

Broadcom has jumped into the AI chip business, which has investors nervous about the profitability and costs of enormous investments.

Broadcom posted better-than-expected earnings on AI demand, and said it sees that momentum continuing in the current quarter.

Yesterday we were watching whether Broadcom could sustain its AI momentum and deliver guidance that justified its 75% rally this year. The company beat on both revenue and earnings after the bell, and CEO Hock Tan delivered the kind of forward commentary investors wanted to hear.

Broadcom Inc. has been one of the hottest stocks in the market this year, driven by the enthusiasm for all things artificial intelligence. But with its quarterly earnings due after the close Thursday,