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Credo Technology Group Holding Ltd (CRDO) reported a record fiscal second quarter with 272% year-over-year revenue growth driven by heightened AI infrastructure demand. The company credits its surge to strong sales of active electrical cables (AECs), high-speed SerDes ICs, and new optical and gearbox products. The company’s market opportunity is likely to exceed $10 billion, tripling its market reach in 18 months.
Credo has introduced three new growth pillars:
- Zero Flap (ZF) optics, expected to generate initial revenue in fiscal 2027 through laser-based connectivity solutions.
- Active LED cables (ALCs), developed with micro-LED technology, with initial sampling targeted for fiscal 2027 and revenue anticipated in fiscal 2028.
- OmniConnect gearboxes, enhancing memory-to-compute links and aimed at addressing the “memory wall” in AI workloads.
The third pillar is supported by a customer planning an XPU with 2 TB of memory, signifying a crucial advancement for the AI sector.
Despite rapid growth, concerns over competitive pressures from Astera Labs (ALAB) and Marvell Technology (MRVL) remain, particularly regarding tariff impacts and market competition.
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