“In addition, certainly, we see the recovery of our embedded business which is also margin accretive. So all those tailwinds we are seeing, we continue to see in next few quarters and our gross margin will be when MI450 ramp, of course, in Q4, driven largely by mix.”

In context

“rvice CPU with, you know, perhaps greater you know, GPU accelerating in the second half. Is there kind of a framework that we should be, working off of? Thanks so much. Jean Hu: Yeah. Thank you for the question. We are very pleased with our gross margin Q4 performance and the Q1 guide 55%, which actually 130 basis point up year over year while we continue to ramp our MI355 year over year very significantly I think we are benefiting from a very favorable product mix all our business. If you think about it in data center, we're ramping our new product, new generation product at Turin and the MI355. Which helps the gross margin in client. So we continue to move up the stack and also gaining momentum in our commercial business Our client on the business gross margin has been improving nicely. In addition, certainly, we see the recovery of our embedded business which is also margin accretive. So all those tailwinds we are seeing, we continue to see in next few quarters and our gross margin will be when MI450 ramp, of course, in Q4, driven largely by mix. And I think we'll give you more color when we get there. But overall, we feel really good about our gross margin progression this year. Operator: Thank you. The next question comes from the line of Joe Moore with Morgan Stanley. Please proceed. Joe Moore: Great. Thank you. On the MI455 ramp, will 100% of the business be racks? Will there be kind of an eight-way server business around that architecture? Then is the revenue recognition when you ship to the rack vendor, or is there something to understand about that? Thank you. Lisa Su: Yes, Joe. So we do have multiple variants of the MI450 series, including an eight-way, GPU form factor. But for 2026, I would say the vast majority of it is going to be RackScale solutions. And yes, we will take revenue when we ship to the rack builder. Joe M”