“I do believe that the first quarter is the trough. We will improve supply in the second quarter.”

In context

“e to a couple of hundred million dollars. I mean both DCAI and client to be down pretty meaningfully. And the client's down more -- I mean maybe DCAI is down high single digits and clients' down like mid-teens. But I guess, number one, is that true? And number two, like why should data center be down so much given where the demand is and given where you're prioritizing? Like why would I expect data center units to be down? It seems like they have to be down pretty meaningfully in Q1. David Zinsner: Yes. I mean, both will be down as a function of supply. Obviously, we're shifting as much as we can over the data center to meet the high demand. But we can't completely vacate the client market. So we're trying to support both as best we can and obviously work our way out of this supply issue. I do believe that the first quarter is the trough. We will improve supply in the second quarter. And part of the challenge is that in the third and fourth quarter of '25, we lived off of supply, but we also had a reasonable chunk of fixed finished goods inventory to also work through. Unfortunately, that is now down to kind of 40% of what it was at peak levels. So we don't have that to rely on. So it's just literally hand to mouth, what we can get out of the fab and what we can get to customers is how we're managing it. John Pitzer: Stacy, do you have a follow-up question? Stacy Rasgon: I do. I mean just to push on that a little bit. I mean, you guys have your own factories, like why are you in the inventory situation that you're in? And then -- I mean, even if you look at -- I get the whole idea about finished goods versus other stuff. But I mean like you have $11.6 billion of inven”