HPE Says It’s Weathering Profit Squeeze at Start of New AI Era

(Bloomberg) — Hewlett Packard Enterprise Co. Chief Executive Officer Antonio Neri said the company expects to weather a slimming of profit margins as it enters a new era of artificial intelligence-driven demand.

Though the operating margin in HPE’s server unit narrowed to 6.4% last quarter, compared with 10.8% a year earlier, Neri predicted that the figure would return to roughly 10% by the end of the current period.