“we're guiding approximately flat margins going into September from June. And that's a reasonable way of forecasting our margins going forward as well. So we expect to be in the range as we go forward.”

In context

“earch. Stacy Rasgon : Hello. Sorry about that. I wanted to ask about tip gross margins. They seemed reasonably strong in the quarter even with revenues down. They seemed like maybe they were implied up a bit sequentially the guide seems pretty stable into September. Can you give us any feeling for drivers of the margin pricing mix? You talked about some additional cost dynamics. I don't know if there's anything in there on the cost of goods side. some of the dynamics there? And how should we expect that to evolve? Is it just mix that drives it going forward? Are there other things that we should think about? Akash Palkhiwala : Sure, Stacy. It's Akash. Yes, we did come in a little bit better than forecasted for the September quarter, and it was really primarily driven by a mix of products. we're guiding approximately flat margins going into September from June. And that's a reasonable way of forecasting our margins going forward as well. So we expect to be in the range as we go forward. Stacy Rasgon : If I could ask one more briefly. Cristiano, you're talking a lot about AI and how that's going to contribute. How does AI actually contribute to the model going forward? Like are you anticipating that venture drives an upgrade cycle? Or is it more content? Or is it ASPs for the chips fall less than they would otherwise? Like how do we think about how that actually drives the model as adoption happens? Cristiano Amon: Very good. Thanks for the question, Stacy. Look, I think I will unpack the answer to the question. And first of all, we're very confident of what we see happening at the edge. On device, I think there's a number of reasons AI is developing on devices, a little bit different in the cloud. Everything that is real-time AI, always-on AI, context latency, reliabilit”