Broadcom (AVGO): 'Chips only' AI boom, margin math & inventory tell [Q2 2026]

Daily Earnings: Shadow financing hardware & the software bust (AVGO, AI) | Jun 3

Today’s earnings window illustrates how the physical reality of the AI buildout is breaking standard IT budgets while pure application vendors face an absolute demand collapse. - Broadcom (AVGO) stood up a $35 billion private-credit platform to finance overwhelming physical data center costs. - C3.ai (AI) abandoned its consumption pricing, fired human staff, and ironically deployed external bots to survive. - CrowdStrike (CRWD) generated $90 million in operating income simply by extending sales commission amortization timelines. As the physical hardware space increasingly requires high-yield private infrastructure financing, the software sector is masking margin pressure and hiding reporting backlogs to endure the gap.

C3.ai (AI): "Unspeakably horrible" sales & hunting enterprise whales [Q4 2026]

Tom Siebel is back as CEO of C3.ai in Q4 2026, dropping $69M of his own cash into the stock while publicly blowing up a failed consumption strategy. In ~10 minutes: - Firing 35% of global staff to aggressively slash costs. - Reversing the pilot sales model to hunt multi-million dollar whales. - A disappearing $225M backlog and zero product mix visibility. - The massive €2.1 billion European trade secret lawsuit. It is a scorched-earth turnaround for the software pioneer. Revenue plummeted over 50% year-over-year, prompting the CEO to publicly eviscerate the company's recent execution. We break down the sheer brutality of the cuts, the resulting drop in stock-based compensation, and whether a much smaller, AI-automated workforce can actually secure enough massive contracts to preserve their $670M cash runway. Company: C3.ai (AI) | Q4 FY2026 AI-assisted production. Feedback/ticker requests: https://x.com/EarnUnscripted.

Broadcom (AVGO): 'Chips only' AI boom, margin math & inventory tell [Q2 2026]

Broadcom Inc.’s Q2 FY2026 was a paradox: AI chip demand looked “insatiable,” but investors sold the stock on margin, inventory, and “chips only” complexity. In this episode: - AI semis hit $10.8B; Q3 guide jumps to $16B. - Inventory rose 46% as Broadcom secured AI supply. - Gross margin guide falls, operating margin stays near 67%. - “No rack. It’s all chips” meets Apollo/Blackstone financing. - Stock slid despite a 29% run into earnings. Susie and Miro unpack why bookings above $30B matter, why working capital is now part of the AI story, and why the market may be asking for cleaner economics after a huge ramp. The big watch: whether Broadcom converts demand into shipments and cash without new balance-sheet ambiguity. Company: Broadcom Inc. (AVGO) | Q2 FY2026 AI-assisted production. Feedback/ticker requests: https://x.com/EarnUnscripted.

CrowdStrike (CRWD): AI security tax and the $881M shopping cart [Q1 2027]

CrowdStrike’s Q1 FY2027 was the paradox: record ARR and free cash flow, a wider GAAP operating loss, and a sharp post-earnings selloff. In ~10 minutes: - Why ARR rose while deferred revenue ticked down - Record FCF, even as cash fell $677M sequentially - AIDR’s 250% sequential growth claim, without the base - SGNL and Seraphic: capability buys, not revenue scale - Q2 watchlist: net new ARR and FCF quality Susie and Miro separate demand strength from cash-flow quality: a $429M receivables inflow helped record FCF, while $881M of acquisitions and $176M of buybacks pulled cash down. They also dig into AI Detection and Response, Falcon Flex, the commission-amortization footnote, and what Q2 has to prove. Company: CrowdStrike Holdings, Inc. (CRWD) | Q1 FY2027 AI-assisted production. Feedback/ticker requests: https://x.com/EarnUnscripted.

Daily Earnings: Bots Break the Foundation (GTLB, PANW) | Jun 2

The explosive volume of autonomous AI agents is now physically breaking traditional enterprise architectures, permanently altering how software is built, how subscriptions are priced, and how heavily infrastructure must be financed. * GitLab (GTLB) is executing a generational architecture rebuild to handle massive bot-driven codebase volume. * Palo Alto Networks (PANW) warned that human cybersecurity defenders are mathematically obsolete against AI. * Desperate hyperscalers are paying HIVE the entire cost of GPU servers upfront in cash. As this transition accelerates, extreme physical infrastructure bottlenecks are violently shifting pricing leverage away from the cloud giants and back to legacy hardware suppliers.