Guidance: Hock Tan: Based on all this -- on this Q4 guidance, I should say, we expect our fiscal 2026 AI revenue to be $58 billion, for the year, up 186% year-upon-year and above our prior guidance of $56 million (sic) [ $56 billion ].
Demand and orders: Hock Tan: We believe the vast majority of compute demand for AI workloads today originates from these concentrated group who develops state-of-the-art frontier models, and we expect their need for compute infrastructure to inflect even more in 2027 and 2028.
Margins: Amie O'Toole: Regardless, we expect Q4 operating margin to be approximately 66%, flat from a year ago because our strong revenue growth drives substantial operating leverage.
Analyst Q&A
Analyst Joseph Moore asked: You talked about the business doubling next year, and you said demand could be higher than that. Can you talk about the supply around that? Management Hock Tan answered: And that's always very much in our mind when we give you that outlook. But certainly, our customers want us to ship more. But we are -- we have secured supply, and we think it's the right number to put it to $115 billion. And if times -- if circumstances change and our ability to secure more supply change, of course, we will uplift. But at this point, that's our best outlook. And by the way, the same applies. The same thinking applies to 2028 when we give you that outlook of $230 billion.
