“We expect Q1 data center revenue to decline double-digit percent sequentially before improving through the year.”

In context

“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 and our discrete accelerator portfolio with well over $2 billion in pipeline to gain traction as we move through 2024. Within NEX, telco markets are likely to remain weak through the year, though we expect solid growth from our Network, FNIC and Edge products. These signals give us confidence that consolidated revenue will grow beyond typical seasonality after a soft Q1. And that we can deliver sequential and year-over-year growth in both revenue and EPS each quarter of 2024. We're confident we can grow earnings faster than revenue this year and maintain roughly breakeven adjusted free cash flow,”