“Additionally, we expect a significant drop in IFS revenue after seeing accelerated purchasing in our traditional packaging business and cyclical weakness in wafer equipment buying in the first half of the year, impacting the IMS business.”

In context

“.S., Europe and Israel. In Q4, we also recognized $845 million of advanced manufacturing investment credits or AMIC, as defined in the CHIPS Act. While our continued IDM 2.0 capital investments will result in increased gross CapEx in '24 as compared to '23, we're on track to our aggregate 2023 through 2024 guidance of net CapEx spending in the mid-30s as a percent of revenue, with offsets towards the high end of the 20% to 30% range. Now turning to Q1 guidance. We expect Q1 revenue of $12.2 billion to $13.2 billion. At the Q1 revenue midpoint of $12.7 billion, we expect gross margin of approximately 44.5% with a tax rate of 13% and EPS of $0.13. While we expect a slightly subseasonal first quarter from our core product businesses, we see material inventory corrections in Mobileye and PSG. Additionally, we expect a significant drop in IFS revenue after seeing accelerated purchasing in our traditional packaging business and cyclical weakness in wafer equipment buying in the first half of the year, impacting the IMS business. When combined with businesses we exited in 2023, we expect a roughly $1 billion sequential revenue impact from businesses outside of our core products. With market signals remaining positive for PC demand and usage rates, we expect TAM to grow in the low single digits in 2024, consistent with third-party views. Our recent results show the PC remains essential, and we remain confident in our longer-term TAM forecast as the age of the AI PC further enhances the value of device refresh. We expect Q1 data center revenue to decline double-digit percent sequentially before improving through the year. While the data center has seen some wallet share shift between CPU and accelerators over the last several quarters, we expect growth in CPU compute cores to return to more normal historical rates a”