Bloomberg Intelligence Tesla Offers Elon Musk an Unprecedented $1 Trillion Pay Package
Sep 5, 2025
Wu-Jun Ho, a Senior Technology Analyst at Bloomberg Intelligence, shares his expert insights on the tech landscape. He dives into Tesla's groundbreaking $1 trillion pay proposal for Elon Musk and its implications for corporate governance. The discussion highlights AI server market dynamics, focusing on Dell's struggles amid competition and market positioning. Additionally, he touches on soaring demand for AI technologies, particularly how it shapes future investments and innovations in the industry.
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AI Server Sales Are Margin Dilutive
- AI server sales lift revenue but compress gross margins because AI servers have lower margin profiles than traditional servers.
- Wu-Jun Ho warns higher AI revenue can be earnings-dilutive unless margin mix improves over time.
Evaluate AI By Margin Dollars Not Percent
- Don't focus solely on operating margin percentages when evaluating AI server growth; look at operating margin dollars instead.
- Expect incremental AI revenue to contribute modestly to EPS in the near term according to Wu-Jun Ho.
Enterprise AI Sales Drive Better Margins Over Time
- As AI sales shift from hyperscalers to enterprises, gross margins should improve but that transition will take years.
- Competitive positioning now matters most to capture long-term profitable enterprise AI demand.