Credo Technology Group Holding Ltd (NASDAQ:CRDO) Q2 2024 Earnings Call Transcript

And Quinn earlier talked about the idea of having 48 connections to the back-end network or 48 AECs within an AI appliance rack that are dedicated to the back-end network versus, say, if it’s a rack with eight appliances, there’d be eight AECs for the front end. So that’s where we see in an actual appliance rack. We could talk about 5 times to 6 times the volume. But then when we think about the switch racks that are part of that back-end network, there’s also an additional opportunity there. And that’s when we can think about the overall opportunity compared to front end being 5 to 10 times the volume.

Tore Svanberg: That’s very helpful. My last question, and I have to ask you this question, just given your strong SerDes IP, but as it relates to the chiplet market, obviously, the CPU market is the first to embrace that. But are you starting to see the GPU market moving in the direction of GPUs as well, or is it just way too early for that?

Bill Brennan: I think that the standard that Intel has been promoting, the UCIe standard, I think that, that is going to be a big market for chiplets. And that for us ties in closely with the efforts that we’re making on PCIe. And so, one thing I would note is that the acceleration and speeds is happening really across the board. And so we’ve been targeting the 64-gig PAM4, PCIe Gen 6 CXL 3 market, but I also see an acceleration for the next generation 128-gig. And so that’s very much part of what’s happening with this explosion in the AI market, is this need for faster and faster speeds. And so I think that you’re going to see the same type of thing that’s happened in Ethernet, you’re going to see that happen with PCIe. And at OCP this year, we had kind of a vision piece that we presented with the possibility of CXL really, and PCIe possibly being the protocol for back-end network connectivity as well as an expansion in front end networks.

So there’s really exciting things coming in the future as we see that standard accelerating.

Tore Svanberg: Great. Thank you so much.

Operator: Thank you. There are no further questions at this time. Mr. Brennan, I turn the call back over to you.

Bill Brennan: Thank you very much for the questions. We really appreciate the participation and we look forward to following up on the call backs. Thank you.

Operator: This concludes today’s conference call. You may now disconnect.