“Within NEX, telco markets are likely to remain weak through the year, though we expect solid growth from our Network, FNIC and Edge products.”

In context

“sses 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, though I'll remind you that the rapid pace of delivering five nodes in four years and capacity expansion in support of external foundry commitments remain headwinds on the pace of our margin expansion. We expect depreciation to grow by approximately $2 billion in 2024, in addition to a significant increase in variable factory start-up costs. 60% gross margin flow-through as a percent of revenue growth remains a rule of thumb in aggregate in the interme”