“I'd say, we still believe in this 40% to 60% fall-through for margins.”

In context

“ut could you just walk us through some of the pluses and minuses as we think about 2026, just kind of directionally? And I guess where I'm going is it seems like the biggest improvement has to come on the foundry gross margin side of things. Is that the biggest driver? What drives it? And as those gross margins go up, does that have any impact on the Intel products gross margin? David Zinsner: Yes, sure. So obviously, we're not going to guide '26, but I think I can give a little bit of color. I think, first of all, just be mindful that Altera is out of the numbers in '26. They were in the large part of the numbers for '25, so that's probably a point of margin headwind for us because they were accretive to our gross margins. So that's going to be a little bit of a challenge to overcome it. I'd say, we still believe in this 40% to 60% fall-through for margins. Of course, it's a little bit of a range. You could drive a truck through quite honestly. But a lot of it is because of mix. I mean we'll have -- obviously, Lunar Lake will be a big component in the -- at least in the first half of the year, and that is a dilutive product to us. And then Panther Lake, while, obviously, it's going to be a great cross structure for us over time given the wafers are fabbed internally -- initially, obviously, when you got a new product on a new process, they're pretty expensive products to start with. And so it's dilutive in the beginnings of the year, and then it gets better over the course of the year. I do agree. We should see gross margins improve on the foundry side for sure. Partly, that is the scale dynamic that we will see benefit from but also as we m”