“Our incremental revenue, for example, what we're expecting next quarter will likely align to our current gross margin levels that we finished in terms of Q3.”

In context

“Timothy, your line is open. Timothy Arcuri: Thanks a lot. Colette, I had a question about gross margin. Are there any margin headwinds maybe on the wafer pricing side that we should sort of think about normalizing out, because gross margin is pretty flat between fiscal Q2 and fiscal Q4. But I imagine that's kind of masking a strong underlying margin growth, especially as Data Center has been actually driving that growth. So I'm wondering if maybe there are some underlying factors that are sort of gating gross margin? Thanks. Colette Kress: Yes. So we have always been working on our gross margin and being able to absorb a lot of the cost changes along the way, architecture-to-architecture really. So that's always based into our gross margin. Our gross margins right now are largely stable. Our incremental revenue, for example, what we're expecting next quarter will likely align to our current gross margin levels that we finished in terms of Q3. Our largest driver always continues to be mix. We have a lot of different mix that has driven related to the high-end AI and RTX solutions, for example, and the software that is embedded in solutions have allowed us to increase our gross margin. As we look forward long-term, software if sold separately can be another driver of gross margin increases in the future. But cost changes, cost increases are -- generally been a part of our gross margin figures. Operator: Thank you. I will now turn the call over back to Jensen Huang for closing remarks. Jensen Huang: Thank you. We had an outstanding quarter. Demand for NVIDIA AI is strong with hyperscalers and cloud services deploying at scale and enterprises broadening adoption. We now help more than 25,000 companies that are using NVIDIA AI. And”