Mark Murphy: Yes, no update, Mehdi, to the cross-cycle model that we’ve provided. So I think the best way to think about CapEx is just over time as a percent of revenue, which we’ve given mid 30s percent over time. Of course, you know, for example, HBM, you know, requires more CapEx, but it also yields a price premium and accretive margin. So we believe that at this time that capital intensity model that we’ve provided before is still intact.
Mehdi Hosseini: Thank you.
Operator: Thank you. [Operator Instructions] And our next question comes from the line of Harlan Sur from JPMorgan.
Harlan Sur: Good afternoon. Thanks for taking my question. As you mentioned, your leading-edge DRAM and NAND supply output is oversubscribed for the full year. Does you factor in your CapEx plans, conversion of capacity from mature nodes to leading-edge nodes? When do you guys see your ability to fully supply to your customers’ demand profile? Is that looking more likely now calendar year ’25 and what end markets or applications are you seeing the largest demand-supply gap as you move through the fiscal year?
Sanjay Mehrotra: As we move through the fiscal year, of course, you know, leading-edge nodes being in tight supply. You know, leading-edge nodes are, you know, driver of demand in PCs and smartphones and data center applications and we have a strong portfolio that is well positioned with these nodes. And — so — I mean, basically, this is important for us to maintain the supply discipline and we — industry is still not at the profitability levels for investments to be made and we’ll manage our supply very, very prudently as we work ahead. And of course, we’ll continue to focus on driving the pricing as well as driving the profitability of our business to bring in return on investments on our CapEx that is needed and do our best to manage and allocate the demand across our end markets and customers.
Harlan Sur: Great. Thanks for that. And again, you mentioned this briefly in your prepared remarks, but if you look at some of the third-party research estimates, September quarter was the second consecutive quarter where the team had, I think, somewhere about 10% to 12% market share in data center NVMe SSDs. If I look back historically, like your share has been more in the sort of 3% to 5% range. So obviously strong recent market share performance. You’ve got a strong lineup of data center SSDs. What’s been the big differentiator for the team here and how do you guys continue to grow your share going forward?
Sanjay Mehrotra: So thank you for acknowledging that. I mean, our team has done a great job with data center SSD product portfolio over the course of the years and now we have a strong set of product offerings for, you know, data center SSDs, NVMe SSDs and we now achieved record data center market share in SSDs for two consecutive quarters. And for the calendar Q3, our data center SSD share now is in line with our NAND share in the industry. And this is really the benefit, and you’re seeing the full benefit, the full power of vertical integration playing out here where our team has worked together from device to design to firmware to system implementation to understanding of customer application, working closely with customers in qualifications and really across a wide range of customers over course of time, have really developed very robust industry-leading, strong product portfolio with greater opportunities ahead as well.
So, this is the transformation that we began to drive in the company, going from selling components in the past to value-add solutions and really very pleased how data center SSD recognition is being provided to our team in terms of revenue opportunities by our customers and, you know, certainly reflected in the share gains that we have made in this market. And of course, another big factor that has been a key contributor to the success here is you may recall we transitioned some time ago from floating gate to replacement gate technology in NAND and that has definitely been a key factor. Strong, successful, timely execution on that has played an important role in our data center SSD strength. So we are very excited about Micron’s market position in this market and our future opportunities here.
Harlan Sur: Thank you, Sanjay.
Operator: Thank you. This does conclude the question-and-answer session as well as today’s program. Thank you, everyone, for participating in today’s program. You may now disconnect. Good day.
