“We'll be passing through more costs within the rack. And so those gross margins will be lower. However, overall, the way Hock said it, gross margin dollars will go up. Margins will go down.”

In context

“rgin than our obviously, the rest of the business, including software, of course. But we expect the rate of growth to offer as we do more and more AI revenue to be so so much that we get the operating leverage on our operating spending that operating margin won't deliver dollars that are still a high level of growth from what it has been. So we expect operating leverage to benefit us at the operating margin level even as gross margin will start to deteriorate. High level. Kirsten Spears: No. I think Hock said that fairly. And the second half of the year when we do start shipping more systems, the situation is straightforward. We'll be passing through more components that are not ours. So think of it similar to the XPUs where we have memory on those XPUs, we're passing through those costs. We'll be passing through more costs within the rack. And so those gross margins will be lower. However, overall, the way Hock said it, gross margin dollars will go up. Margins will go down. Operating margins, because we have leverage, operating margin dollars will go up, but the margin itself, a percentage of revenues will come down a bit. But we're not I mean, we'll guide closer to you know, the end of the year for that. Stacy Rasgon: Got it. Thank you, guys. Operator: One moment for our next question. That will come from the line of Jim Schneider with Goldman Sachs. Your line is open. Jim Schneider: Good afternoon. Thanks for taking my question. Hock, I was wondering if you might care to calibrate your expectations for AI revenue in fiscal 2026 a little bit more closely. I believe you talked about acceleration in fiscal 2026 off of the 65% growth rate you did in fiscal 2025. And then you're guiding to 100% growth for Q1. So I'm just wondering if the Q1 is a good jumping-of”