Is this AI market cycle evolving from selling shovels to selling software?
Looking at the latest financial reports, in the hardware and infrastructure segment, the $DELL surge in AI server orders directly lifted the full-year revenue outlook to $192 billion, while the $AVGO AI chip revenue for a single quarter jumped to $16.7 billion. Compute infrastructure continues to accelerate. But capital markets are becoming increasingly demanding about hardware: when Broadcom’s guidance doesn’t exceed expectations by a wide enough margin, the stock price can swing violently.
In contrast, on the software side, $SNOW ’s AI coding tools like CoCo, among other products, drove a 37% jump in quarterly product revenue. Guidance was raised across the board, and the stock surged 22% after hours. This suggests the market is reshaping its valuation logic: after the phase of buying compute power passes the halfway point, money starts flowing toward applications and data layers that can turn AI directly into customers’ bills.
The future trend is actually quite clear. Hardware vendors will face pressure from both sides: squeezed gross margins and extremely high expectations. Telling a story by selling pure compute power is becoming harder and harder.
Meanwhile, companies like Snowflake, which hold core data and can rapidly roll out AI workflows, are entering the monetization and realization phase.
The true breakout point for AI is shifting from servers in data centers to enterprises’ data lakes and application software.
DYOR
#雪花公司财报超预期股价涨24%
Looking at the latest financial reports, in the hardware and infrastructure segment, the $DELL surge in AI server orders directly lifted the full-year revenue outlook to $192 billion, while the $AVGO AI chip revenue for a single quarter jumped to $16.7 billion. Compute infrastructure continues to accelerate. But capital markets are becoming increasingly demanding about hardware: when Broadcom’s guidance doesn’t exceed expectations by a wide enough margin, the stock price can swing violently.
In contrast, on the software side, $SNOW ’s AI coding tools like CoCo, among other products, drove a 37% jump in quarterly product revenue. Guidance was raised across the board, and the stock surged 22% after hours. This suggests the market is reshaping its valuation logic: after the phase of buying compute power passes the halfway point, money starts flowing toward applications and data layers that can turn AI directly into customers’ bills.
The future trend is actually quite clear. Hardware vendors will face pressure from both sides: squeezed gross margins and extremely high expectations. Telling a story by selling pure compute power is becoming harder and harder.
Meanwhile, companies like Snowflake, which hold core data and can rapidly roll out AI workflows, are entering the monetization and realization phase.
The true breakout point for AI is shifting from servers in data centers to enterprises’ data lakes and application software.
DYOR
#雪花公司财报超预期股价涨24%
