“We continue to expect to exit the year with non-GAAP gross margins in the mid-seventies.”

In context

“t the ramp of Blackwell and Blackwell Ultra, inventory increased sequentially from $11 billion to $15 billion in Q2. While we prioritize funding, our growth and strategic initiatives in Q2, we returned $10 billion to shareholders through share repurchases and cash dividends. Our board of directors recently approved a $60 billion share repurchase authorization to add to our remaining $14.7 billion of authorization at the end of Q2. Okay. Let me turn it to the outlook for the third quarter. Total revenue is expected to be $54 billion plus or minus 2%. This represents over $7 billion in sequential growth. Again, we do not assume any H20 shipments to China customers in our outlook. GAAP and non-GAAP gross margins are expected to be 73.3% and 73.5%, respectively, plus or minus 50 basis points. We continue to expect to exit the year with non-GAAP gross margins in the mid-seventies. GAAP and non-GAAP operating expenses are expected to be approximately $5.9 billion and $4.2 billion, respectively. For the full year, we expect operating expenses to grow in the high thirties range year over year, up from our prior expectations of the mid-thirties. We are accelerating investments in the business to address the magnitude of growth opportunities that lie ahead. GAAP and non-GAAP other income and expenses are expected to be an income of approximately $500 million, excluding gains and losses from non-marketable and publicly held equity securities. GAAP and non-GAAP tax rates are expected to be 16.5%, plus or minus 1%, excluding any discrete items. Further financial data are included in the CFO commentary and other information available on our website. In closing, let me highl”