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HPE has direct visibility into memory supply chains in a way that most companies don't. When they say the shortage runs longer than expected, that's not speculation. It's procurement reality. HPE's server segment actually declined 2.7% year over year despite the company being at the center of enterprise AI infrastructure, with memory constraints identified as the reason.
Typically, headcount growth has been required for revenue growth but AI is changing that relationship. Corporate America is increasingly signaling a decoupling between revenue growth and headcount growth, with executives from companies like Snowflake and Shopify describing how AI tools are allowing them to do more with smaller teams.
