Credo Technology Group Holding Ltd at Barclays Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : It's always an interesting conversation because I feel like every year, we're up here talking about different things, which is really good, right? So new innovation, the market looking different, but maybe like a step back to start, which is you're seeing $3 trillion-plus of announced spend? Are we in the early innings of this AI investment cycle? You've been very clear in the past about how you guys are going to enable that, but I'd love for maybe you guys to start by sharing that where are the blockades in these deployments that you guys kind of enable? And what sort of products are you guys talking about most recently?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : I know the answer. It's not for me.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Oh, no.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : So I want to go through all the verticals that you talked about most recently on your earnings call outside of AECs eventually, but I do want to start with the bread and butter of the business, which is these AECs. So you started with one large customer that became two and then the second customer became the largest, and now you've added a host of customers across the board. As you progress here, it seems like every time you add customer diversification, you get increasing questions on the sustainability of one customer or another customer. And people tear open boxes, look at certain deployments and say, look, Credo has already seen its day in the sun. We're seeing more competition here. I'd love you to spend some time talking around your road maps with these customers, why you feel like you're well positioned with your largest several? And then why you guys would be able to kind of maintain the position that you have today?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Yes, I was going to comment. We had a competitor in the space talk about Golden cables this week. And is that evangelizing the ecosystem to kind of work together like oh, this is a chip solution. We need others to kind of hop on board with us to have more success. Is this kind of going after the same approach as you guys? Like how did you read that from a competitor?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : I think it's a color. I had enough color nonsense with the guys.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Got it. So if I rewind the clock, Microsoft in the early days, front-end applications Amazon, you moved to more back-end applications. You talked xAI. You just spoke about an instance where you worked with them on a row-scale type of architecture. When you are adding these customers, can you talk maybe some of the solutions or some of the problems that you're solving with your solutions? Is it always kind of the same Y, X cable in the back end? Is it just all straight cables, like what -- can you maybe -- I think people struggle with, oh, this is the same thing over and over again. That's why you can't scale. Can you maybe give people some perspective on what problems you're solving with these different customers? And why it's not just the same thing over and over again?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Revenue.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : When you think about future generations with customers and early designs, and I hate to go down this road, but it is a reason why the stock has reacted as it has in recent days?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Yes. So essentially, you open boxes you say, I can count the number of cables in there that are Credo's because of certain color. Is it fair to always assume that the cables that you see in certain boxes are always purple and they're Credo's. And if you move to higher speeds, is the opening of the first box always going to be with all those boxes look like at that customer. I ask this on stage because I've heard this answer from you before, but I'd love for you to clarify it. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 10:30PM, CRDO.OQ - Credo Technology Group Holding Ltd at Barclays Global Technology Conference

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Another area just on the AEC front that I get a lot of questions on is just co-package optics, both from a scale-out ecosystem and then a scale-up ecosystem. I think that generally, the industry knows that we're heading in that direction, but the timing of when it gets here is, I think, very debated. Maybe talk about -- does your solution bridge that gap ultimately to getting to co-package optics? Do you think that with the Hyperlume acquisition, which you've talked about like 20 to 30 meters, you will have some capability to do some scale-up optics eventually? Like what's your view on timing and then your ability to address CPO?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Okay. So it's two verticals. You've got AECs, you've got ALCs, ZF optics. So recent conferences, you were shown with a lead customer on stage or at least a partner for today. And I think it's interesting, you speak about reliability so frequently. And the way that you've ensured reliability in the past is move from a chip-based solution to a cable solution, right, handling the entirety of the solution. This seems to be moved from an optical DSP to an entire module. What economics or what benefits can you get from a performance perspective moving to a full module in optics that you could get in electrical as well? And why would you choose to do this full solution? And why is the customer like it?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Another vertical that you're saying impacts financials in the near future is PCIe. I was curious. I know you're intersecting the market. Next-gen PCIe, but where do you see your first value prop to the industry? Is it PCIe onboard retimers? Is it PCIe cables? Obviously, the heritage of the company suggests that you may want to go in the direction of the cables first. But today, the market for PCIe onboard retimers is bigger. How do you see your go-to-market approach?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : And then moving to the last kind of vertical that we haven't touched on yet is just the Omni Connect portfolio. The last time we spoke to one another, you said, Tom, go watch the video. We'll explain it all to you. I went and watched the video. I'm feeling a little bit better, but I'm not all the way there yet. I've heard a variety of different memory enhancement strategies between CXL, whether it's a pluggable, a chip on board, a card. Maybe just for the audience more broadly, the problem you're trying to solve is bandwidth, right, from either a CPU or accelerator to the memory that's sitting somewhat adjacent. The way in which you do that has varied across multiple different companies and solutions. How are you guys going about doing this?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : I got it. So the handoff between needing to use higher bandwidth memory that sits closer to the accelerator gets essentially taking (inaudible)? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 10:30PM, CRDO.OQ - Credo Technology Group Holding Ltd at Barclays Global Technology Conference

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Got it. Something on the gross margin side. Dan, I know this question gets asked every earnings call, but you continue to come ahead of your midpoint of the long-term model on gross margins. Bill, I think you've done a good job explaining just essentially what customer dynamics look like when your gross margins go up, what they have to pay you to make that happen and how that continues through the supply chain. I know we're early days with a lot of customers, but you're also introducing a lot of new products that are very innovative as well. When you look at the portfolio of verticals that you've talked about, how do you see gross margins trending in the long term with these new additions?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Well, with that, we're out of time. Thank you so much, Bill and Dan, for joining us. I really appreciate exciting time. Great. Thank you.