David L. White

Thank you.

Jen-Hsun Huang

Thanks, Suji.

Operator

Our next question comes from the line of Rick Schafer with Oppenheimer and Company. Please proceed with your question.

Dan Morris - Oppenheimer and Company

Hi, guys. This is Dan Morris calling in for Rick. Thanks for taking my questions. Just on the gross margin. You’ve expanded it pretty nicely over the last few quarters. As I look at your, some of your new products, such as Tesla and Tegra and Tesla ramping over the next few quarters, it seems like you have a nice tailwind with mix. Could you talk to us a little bit about expectations for gross margins and further opportunities for margin expansion?

Jen-Hsun Huang

Well, the only thing I would add, Dan, is we don’t typically give guidance out past the first quarter but as we’ve talked about previously. We expect our Quadro, our Tesla and our Tegra business to become a greater part of our mix over time as those businesses ramp.

Those three businesses all carry a gross margin that is above even our current corporate weighted average and so as those products ramp and become a richer part of our mix we would expect to see further lift in our gross margins.

And we’ve indicated in the past that we expect Tegra to ramp substantially in the second half of the year. We would reiterate our belief in that and hopefully with that we’d see some margin expansion with it.

Dan Morris - Oppenheimer and Company

Okay. Great. And as follow up could you just talk about the pricing environment in GPU and what happens in the second half, assuming that 40-nanometer capacity issues abate?

Jen-Hsun Huang

Well, you’re asking a question for a state of supply that we’re all hoping for, which is when they abate. My sense is that supply will remain constrained for at least the first half of the year and as we ramp further new products into the marketplace I surely hope that the supply situation will be there to support it.

In terms of pricing, we increasingly are shifting our focus towards products and markets where we have great differentiation and if you look at the products that we offer today in mass markets, GeForce, for example, increasingly CUDA brings unique capabilities to it. We’re the only supplier of 3D stereo in the PC market and 3D Vision only works with GeForce.

And so we’re increasingly developing capabilities that are very differentiated on top of our processor brands and so hopefully those differentiations will be valued in the marketplace and accordingly reward us with a price premium over time.

Dan Morris - Oppenheimer and Company

All right. Thanks. Thanks, guys.