Credo Technology Group Holding Ltd at Mizuho Technology Conference Transcript

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

Question: Vijay Rakesh - Mizuho - Analyst : AEC cables. It's been the big chunk of your revenues. I mean, it's been a big driver for you. I think, since your IPO, your AEC cable revenue has grown almost 10x, I believe, just amazing. I don't think anybody saw it growing that fast, but maybe you can talk to us about the competitive mode. What is driving that business, and how you see that going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 10, 2025 / 5:20PM, CRDO.OQ - Credo Technology Group Holding Ltd at Mizuho Technology Conference

Question: Vijay Rakesh - Mizuho - Analyst : So I think you mentioned the chip side and the software side. On the chip side, obviously you talked about how you're at minus 1, at 10 nanometer, 12 nanometers, and is able to beat your peers on power consumption or cost how do you see that as you go forward? You're already below your peers in many cases like on SerDes when you look at Broadcom, Marvell. How do you see that as you go to 5 nanometer, which I believe is step out next year?

Question: Vijay Rakesh - Mizuho - Analyst : So how does that compare to what's out there? What does the competition do when you start coming to market with a 3 nanometer?

Question: Vijay Rakesh - Mizuho - Analyst : Got it. I think so that brings us to an interesting point, which is the hardware side, obviously you have a pretty good lead, but then you also bring in a good software overlay on there where you're able to kind of predict where the next failure point is or predict a link flap, which actually helps you, helps the customer get more up time on the server might be going to some predictive maintenance, et cetera. Maybe we can talk to that because there's a big differentiator now on the AEC side versus many of your peers, right?

Question: Vijay Rakesh - Mizuho - Analyst : So is that something that you can roll out an existing customer deployments already, or is that only with the new ramp that you can roll in the software?

Question: Vijay Rakesh - Mizuho - Analyst : Okay. And now on the AEC side, going back, obviously you have grown 10x, but investors, they're not really satisfied with the 10x growth.

Question: Vijay Rakesh - Mizuho - Analyst : Exactly. So as you look out, how do you see that pipeline growing either from a customer diversification standpoint or just increasing engagement at your existing customers?

Question: Vijay Rakesh - Mizuho - Analyst : So to that point, like you already have a massive proof point with Amazon with big customers, they are ramped well. Are you seeing other customers start to look at these proof points and say, hey, we can ramp up to that scale, or are you able to kind of use that example as a as a starting in your other ramps?

Question: Vijay Rakesh - Mizuho - Analyst : So sticking with the theme of cables, I guess, I want to go to the scale up side. I think the new trend that's coming on is your rack and spine are starting to flatten out. There's more clustering of GPUs. They're going from 70 to 128 to 512 and 1,000 cluster GPUs. Maybe we can talk to the scale up side. What's the opportunity there versus you know scale out that you do today, what differentiates you from the others?

Question: Vijay Rakesh - Mizuho - Analyst : Wanted to get to that in a little bit, but I think the key is when you look at the top of the rack, your AEC cable that itself has driven a massive growth for 10x. This scale up op opportunity is something that is not talked about even on the IPO side and now that is starting to gather steam, get your design wins there's a massive ramp ahead of you. You talked about design win on the scale up side in the second half '25, which looks like pretty quick. How are you able to differentiate on the scale up versus the existing? What's different? Is it power? Is it performance? PCIe is an industry standard, but how are you differentiating versus the competition?

Question: Vijay Rakesh - Mizuho - Analyst : Yeah. I'm sure investors want to know why.

Question: Vijay Rakesh - Mizuho - Analyst : And where's the competition when you look at that 43 dB?

Question: Vijay Rakesh - Mizuho - Analyst : The distance versus signal.

Question: Vijay Rakesh - Mizuho - Analyst : Yeah, so one of the things you mentioned is NVLink obviously has a much higher bandwidth than PCIe Gen 5, let's say 32 gigabit per second now it is 200. When do you start to see it competitive to NV link, and you mentioned UALink and SUE, but obviously UALink looks like, the sponsors are dropping away, I guess it's only AMD left, but how does SUE stack up on bandwidth versus NVLink versus, I guess it's Ethernet might be PCIe Gen 5 itself versus you know what you will be doing.

Question: Vijay Rakesh - Mizuho - Analyst : Got it. Okay. And so when you look at going to market with the with the scale up product, would the first, customers would be the first AEC doctors, would that be the route to go? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 10, 2025 / 5:20PM, CRDO.OQ - Credo Technology Group Holding Ltd at Mizuho Technology Conference

Question: Vijay Rakesh - Mizuho - Analyst : You also mentioned one of the things on your AEC cable, so to go back to that is a big chunk of your shipments are still 50 gig per lane, but obviously 100 gig per lane coming where AEC becomes a much bigger use case. Can you talk to how that should logically accelerate the AEC adoption as you start to see Tomahawk 5 or 6 start to ramp here, and you know that whole bandwidth per lane start to increase, I guess.

Question: Vijay Rakesh - Mizuho - Analyst : You said the name yet?

Question: Vijay Rakesh - Mizuho - Analyst : Got it. I want to go to the optical DSP site. I think, it's a small market for you. It's a small revenue for you now, but like your AEC site has grown like 10x in the last two, three years from a smaller base, definitely, but obviously you are expanding significantly in that space. You said your three customers, add two more by the end of the year. Can you talk to what's differentiating you from the competition and how you're able to break into the market? And when you look at that customer set there, does it obviously the DSPs, but does it kind of line up with how the AEC customer ramps look like?

Question: Vijay Rakesh - Mizuho - Analyst : And so when you look at since you're talking about optical, I want to go to the CPO side of this.

Question: Vijay Rakesh - Mizuho - Analyst : So there's all the talk about CPO at top of the rack at the switch odd CPU at the GPU level, and now as in the cluster sizes increase, from, 70 to 128 to 512, do you see CPO more starting off at the GPU than top of the rack, or how do you see that playing out?

Question: Vijay Rakesh - Mizuho - Analyst : How does it compare versus optical when you look at copper?

Question: Vijay Rakesh - Mizuho - Analyst : Got it. And when you look at the scale up versus the scale out opportunity, obviously you know scale out you guys have a pretty good -- you've been playing this game and you've been able to knock down a couple of designs that scale up is a new opportunity for, but how do you compare the technical complexity of scale up versus scale out like where do you see the competitive mode is much more challenging? Is it on scale out, scale up? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 10, 2025 / 5:20PM, CRDO.OQ - Credo Technology Group Holding Ltd at Mizuho Technology Conference

Question: Vijay Rakesh - Mizuho - Analyst : Got it. And so, when you, when you're talking scale up, maybe you can talk about the SUE side. Are you part of that of the SUE group, and when do you see that actually pick up versus -- are you seeing CSPs actually ask for scale up versus NVLink. And we are not talking about NVLink Fusion too because obviously --

Question: Vijay Rakesh - Mizuho - Analyst : Just because of the way how the side has evolved, I guess.

Question: Vijay Rakesh - Mizuho - Analyst : What does NVLink Fusion do to that equation?

Question: Vijay Rakesh - Mizuho - Analyst : So it's still NVLink, but it just opens the protocol.

Question: Vijay Rakesh - Mizuho - Analyst : So when you look at the top of the rack, obviously moved from InfiniBand to Spectrum-X to Ethernet to AEC, it took a little bit of time, but you know it's happening. On the NVLink side, is the move from NVLink to NVLink Fusion to, like an Ethernet PCIe standard, is that a faster transition? Is that an easier transition because an industry standard there, or is there -- what's the cost benefit for a CSP because we hear CSP saying that they want Ethernet than NVLink, but what's the cost transition from --

Question: Vijay Rakesh - Mizuho - Analyst : And then, obviously you now have a lot of the AEC cables being made out of China and you moved to Malaysia, I guess. Maybe you can talk to how that capacity, how you're lining it up because right now it's mostly geared to AEC cables. Your optical DSPs goes to TSMC, but what's the capacity that you will need from a scale up? Can it be built in the same factory? Is it -- how do you envision that capacity rolling out?

Question: Vijay Rakesh - Mizuho - Analyst : Another opportunity coming there's 10x or so scale up.

Question: Vijay Rakesh - Mizuho - Analyst : Okay, great. I think we got about five minutes left, we'll take some questions. Any questions in the audience? Unidentified Participant Just kind of curious what you think the roadmap for copper could be like, I know 400g per lane. Copper seems almost impossible.

Question: Vijay Rakesh - Mizuho - Analyst : And I think Broadcom on the recent earnings call talked about networking growing 170% year on year. And I think networking in total is probably up to a 15 billion market. You guys are sub billion, so we'll see, I guess.

Question: Vijay Rakesh - Mizuho - Analyst : Any other questions, I guess? Great, I think, that brings us to the top of the hour.