Daily Earnings: AI execution cracks legacy margins | SNOW, AVGO, HPE | Sep 2

The massive cost of deploying artificial intelligence is actively cracking legacy tech profit margins, proving that explosive top-line demand carries fundamentally worse unit economics.

* SNOW explicitly lowered margin guidance because running AI inference queries costs more than standard lookups.

* HPE hardware orders outpace recognized revenue three-to-one because supply chains lack specialized factory cleanrooms.

* AVGO stopped forecasting server sales, measuring deployment growth purely by electrical gigawatt capacity.

Over the next few quarters, software and hardware vendors must either secure extreme pricing leverage or accept permanently diluted profitability to maintain market share.