Christopher Rolland: Yes, that’s right. I think that was in March. You guys talked about that $200 million for this year.
Matt Murphy: Yes, exactly. So yes, so we’re tracking, I’d say, close to the $200 million, okay, for this year. And then what we had said at the Investor Day and kind of the long term was this $800 million, and that was between, sometime between FY ’25 and ’26, that was what the — if you looked at the slide from a couple of years back. And what we had said, I think 2 quarters back or it was a quarter back that, that number would be bigger over time now because of the AI piece of it, even though some of the stuff had shifted around that wasn’t an AI. And I think that’s still largely on track in that time frame. We never gave an exact kind of — it’s going to happen in XYZ quarter. But in that FY ’24, ’25, FY ’25, ’26 time frame it should be able to get towards above that number we gave before which is the $800 million.
So I don’t think there’s any mixed signals. I don’t think there’s any update, which I think we’re — I think there’s some enthusiasm around, but nothing’s changed from a quarter ago. In fact, I think the thing that’s positive is that the chips are looking really good to go to production for next year, and that was always a risk. Chris, if you remember in our commentary was, hey, these are extremely large die, very complex and a respin either by us or by our customer would — could cause some delay. And so far, knock on wood, both these programs look like they’re in good shape. The real issue is given the sort of growth that we’ve seen in gen AI. We just don’t know the total magnitude, but it will be bigger than what we sized before. And I think we’re largely tracking to what we thought was going to happen.
Christopher Rolland: Thank you for that Matt. One last one on carrier. Is Q4 going to be the bottom? Or do you think there could be some more yet to drop? And then I think you have some additional content coming at one of your customers at the end of the year. Is that going to be a meaningful lift for the segment? Thanks.
Matt Murphy: Yes. So there’s — as I think I said in my remarks, there’s going to be continued softness into Q1 in carrier, okay? It’s going to take, who knows how many quarters. And it really depends, I think, there’ll be some inventory and then you’ve got to also look at kind of where the CapEx ends up during next year and where carriers are actually going to spend globally on their deployments. But over time, there is a lift. There’s a content lift we get from the additional sockets. And we still don’t know kind of where — let’s go a couple of years out over the next couple of years where the market share is going to go as well relative to the sort of western suppliers versus the Chinese suppliers on a global basis. So there’s a few factors in there that need to be considered.
But yes, over time, sort of the number of base stations per year has been relatively well understood. Our content is going to be larger. And it’s a solid business for us, I think that we built from a very kind of nascent position just a few years ago. But it will come back and it will have a little tailwind because of the content.
Christopher Rolland: Thanks so much, Matt.
Operator: The next question comes from Srini Pajjuri of Raymond James. Please go ahead.
Srini Pajjuri: Thank you. Matt, I have a couple of clarifications at this point. First, on the custom silicon, understanding that it’s a little bit early to size the opportunity. Given the complexity of these chips and the supply chain issues that we’ve been hearing about on the HBM and the CoLo [ph] side, I would think that the lead times from your customers are fairly long. So my question is, when do you expect to start building inventory, I guess, in terms of wafer inventory and packaging and et cetera. What time frame should we kind of expect that if you, I guess, are looking to ramp next year?
Matt Murphy: Well, the planning certainly is happening now, Srini, to your point. And I think between ourselves, our supply chain partners, and our end customers who have a vested interest to make sure this all goes well. I think we’ve been working quite well as a kind of a team to make sure we’ve got the necessary capacity that’s required from our wafers packaging and kind of third-party component perspective, including HBM. And yes, I mean, all of those are either capacity that’s reserved or we’re in the process of starting wafers. I mean again, there’s multiple programs. So it’s not sort of a — each product is at a different point. But yes, I think the answer is, well — and I think I was saying this even a quarter or 2 ago, we’ll have a lot better visibility kind of come, call it, March when — what this is going to look like because at that point, given lead times and all the other factors we’ll just have much better visibility.
So that’s sort of the, I guess, the pro, if you will, of some of the complexity we’re dealing with is you do have to plan in advance and you do have to start wafers. So all of that is kind of in motion. I would say the capacity planning has been done some time ago. So we feel comfortable with where we are on that, even though it’s tight. But yes, we’re in that process, but I don’t think we’re going to get that granular on when exactly we’re starting wafers, and we’re just going to try to size the opportunity for investors when we have a better view in terms of what the revenue is, but the capacity side is looking to be in good shape for us.
Srini Pajjuri: That makes sense. And then my other follow-up, Matt, on your Q1 guidance. And obviously, you said half of your business is going to be down. But I would have to imagine that the data center will continue to be healthy and strong, especially kind of what your customers are talking about in terms of AI investments continuing and also NVIDIA kind of sounded fairly positive about next year as well. So my question is, given the strength that you saw in the last 2 quarters, I mean, are you concerned about any inventory build in your components? Or is that what’s giving you pause about guiding for growth in the first quarter for the overall business? Because even if 50% of the business is down because looking at how much this business has grown in the last 2 quarters and if that trend continues, I would have to imagine that the total revenue should grow in Q1. So I’m just wondering what’s giving you that pause looking for growth in Q1.
Matt Murphy: Yes, yes. No, no problem. I’ll maybe give you a little bit of a bad time here. I think we’re trying to get to the Q4 call first. And then we could do the Q1 call, okay? So maybe first things first. So that being said, I mean, look, I think I would agree with the market commentary you gave, which is year-over-year, we do expect strong growth. I’d say on our side, if you look at kind of the growth we’ve seen on AI, we’re having a very, very strong fourth quarter. And some of that we’re catching up from the upsides we had. I mean our supply chain team has done a phenomenal job, right? So I’d just say that we’re not guiding Q1, it’s dynamic at this point. And I need to really see where the orders flow in and what people really need.
