Rene Haas

As you know, we don't typically provide forward guidance on an annual basis, but we have a line of sight that says we see it coming.

And it's probably coming sooner than we had thought.

And the reason for that is the data center growth.

But if you click below that, why is data center growing so rapidly?

It is the presence of ARM CPUs in the data center.

We're now over 50% market share with the hyperscalers.

Secondly, the CPUs that are being used are using more ARM CPUs inside the chip.

192 cores, for example, inside a Graviton chip going from 96.

NVIDIA VERA going from 72 cores on Grace now to 88.

So what does that mean?

That means more cores, means more royalties and high growth rate.

Well, why are there more cores?

When you think about agentic AI and everything associated with agents moving workloads across systems, managing workflows, et cetera, et cetera, that's the kind of work only CPUs can do.

So to your question, while we're not giving a date, we can see it, and it's coming sooner than we had thought, even probably six to nine months ago.

Yeah, so it's a great observation, Caroline.

And yes, there's huge growth in Google's CapEx.

Not all of that $180 billion is coming to us, of course.

But what does that say?

We continue to see investments in the data center, whether it's what Meta had announced or Microsoft announced and now Google, Alphabet, that exceed what people had originally thought was even possible even a couple of years ago.

If you go back to when