“So, going to Q4, again we're not guiding Q4 and it's going to depend on mix. I would say one thing is you will have a similar dynamics, right. Datacenters expect to grow very significantly. At the same time, we're going to have the same headwind from embedded business declining sequentially. So, overall, we do expect gross margin to improve from this level going forward.”

In context

“gross margins coming up in the back in the second. I mean, they still kind of missed in the quarter. I know they rounded up to 50%, but they were 49.7%. I know you're guiding 51 for Q3. Jean, where do you see gross margins sitting like in Q4 as we exit the year? Jean Hu: Yes, I think the gross margin is, for us, the primary driver as we discussed in the past, it's really mixed. And if you look at our guidance or outlook of Q3, gross margin of 51%, it's more than one percentage point improvement sequentially despite of very significant headwind from embedded business declining in Q3. So, the datacenter and the client business are expect to grow double-digit sequentially and provide a positive impact on the gross margins, which actually more than offset the headwind from embedded business. So, going to Q4, again we're not guiding Q4 and it's going to depend on mix. I would say one thing is you will have a similar dynamics, right. Datacenters expect to grow very significantly. At the same time, we're going to have the same headwind from embedded business declining sequentially. So, overall, we do expect gross margin to improve from this level going forward. Stacy Rasgon: Okay, thank you. Operator: And the next question comes from the line of Joe Moore with Morgan Stanley. Please proceed with your question. Joseph Moore: Great, thank you. You've talked about the embedded business declining as you move into the second-half. Can you give us a sense for how much? And is that decline a function of the common infrastructure market or are you seeing weakness beyond that part of the market? Lisa Su: Yes, sure, Joe. Thanks for the question. So, look, when I look at the embedded business, I think we should start by remembering that we're coming off of six quarters of very strong growth. I mean, this business has performed extremely well and very pleased with the overall momentum in the business. To your exact question of what we're seeing in the marke”