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CRDO Eyes Growth: Will Retimer Business Fuel its Revenue Engine?
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Key Takeaways
CRDO's retimers enhance PCIe 6.0/7.0 performance, extending cable reach up to 7 meters in AI systems.
Strong AI-driven demand fuels sales of 50G/100G Ethernet retimers with MACsec and advanced software.
FY26 revenues are projected to surpass $800M, up over 85% year over year, led by PCIe and Optical DSP growth.
The PCIe interface continues to play a vital role in AI clusters, enabling high-speed connections between GPUs, CPUs and endpoints such as Smart NICs and NVMe storage. As AI workloads become increasingly complex and large-scale, the need for faster data transmission and more efficient hardware interconnects has grown significantly. Credo Technology Group Holding Ltd.’s ((CRDO - Free Report) ) sophisticated retimer solutions address these demands by minimizing data transfer bottlenecks and improving overall system performance and connectivity.
Credo’s retimers and PCIe OSFP-XD AECs improve PCIe cabling by overcoming limits of PCB and passive cables in PCIe 6.0/7.0 systems. By placing retimers on the PCB or in the cable, they reduce insertion loss and extend reach up to seven meters for in-rack and rack-to-rack use.
Strong Retimer sales are driven by its 50G and 100G Ethernet solutions, which offer key features like MACsec encryption, gearboxing and software support. CRDO’s customers now include top AI server makers and switch vendors, highlighting strong demand in AI systems. For fiscal 2026, it anticipates robust growth as more customers transition to 100G per lane solutions and seek system-level and software expertise for complex AI architectures. The new PCIe Gen6 Retimer family, led by the 2CAN Retimer, passed PCIe compliance testing and demonstrated strong performance. Live demos at GTC, OFC and Computex with two top ODMs confirmed its capabilities.
Customer interest in PCIe Retimers is rapidly growing, with design wins anticipated in 2025 and production revenues in 2026. The company’s strength lies in its advanced SerDes technology, a customer-first approach and system-level innovation that offers improved latency, reach and power efficiency. Its PILOT telemetry software also accelerates development, boosts yields and enhances system monitoring—key advantages highlighted by customers.
Per a report from Verified Market Reports, the PCIe Retimer market size was valued at $1.2 billion in 2024 and is projected to achieve $2.8 billion by 2033, at a CAGR of 11.5% (2026-2033). Credo’s retimer business is a clear engine of growth and innovation. In tandem with its Retimer business, the company is well-positioned to benefit from its Optical DSP and AEC offerings. CRDO expects its revenues to exceed $800 million in fiscal 2026, implying year-over-year growth of more than 85%.
CRDO’s Cut-Throat Competitors in the PCIe Retimer Market
Astera Labs ((ALAB - Free Report) ) develops semiconductor-based connectivity solutions tailored for cloud and AI infrastructure. ALAB is advancing next-gen data center infrastructure with the introduction of a PCIe 6-ready reference design based on NVIDIA Blackwell-based MGX platform that leverages Scorpio Smart Fabric Switches for AI and cloud infrastructure. It has showcased the first end-to-end PCIe 6 interoperability with NVIDIA’s Blackwell GPU and Micron’s NVMe SSD, with both Aries 6 PCIe Smart Retimer and Scorpio-P PCIe SmartFabric Switch.
It has emerged as a key player in next-generation data center connectivity, with a full-stack portfolio spanning PCIe 6.0, Ultra Accelerator Link and CXL 3.0. The company has moved its Scorpio PCB switches and Aries 6 retimers into volume production, set to ramp up in late second-quarter fiscal 2025 for AI rack-scale systems. It also launched the Aries 6 PCIe Smart Gearbox to link PCIe 5 and PCIe 6, with several hyperscalers using it for AI and compute platforms. A cutting-edge product lineup, combined with solid demand from hyperscalers, is projected to support its long-term revenue growth.
San Jose, CA-based Broadcom ((AVGO - Free Report) ) is a premier designer, developer and global supplier of a broad range of semiconductor devices. Targeting enterprise, hyperscale data centers and service providers, its portfolio includes advanced technologies such as DSP, Ethernet, optical interconnect, PCIe, SerDes, XPU and physical layer solutions, all aimed at enhancing performance and connectivity across AI-driven infrastructure. It has launched its PCIe Gen 6 portfolio, featuring high-port switches and retimers tested for interoperability with partners like Micron and Teledyne LeCroy. AVGO’s in-house SerDes technology and collaboration with ecosystem partners aim to support scalable AI clusters.
CRDO Price Performance, Valuation and Estimates
Shares of CRDO have surged 216.6% in the past year compared with the Electronics-Semiconductors industry’s growth of 27.9%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, CRDO is trading at 18.86, higher than the Electronic-Semiconductors sector’s multiple of 8.78.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has seen a significant uptick over the past 60 days.
Image: Bigstock
CRDO Eyes Growth: Will Retimer Business Fuel its Revenue Engine?
Key Takeaways
The PCIe interface continues to play a vital role in AI clusters, enabling high-speed connections between GPUs, CPUs and endpoints such as Smart NICs and NVMe storage. As AI workloads become increasingly complex and large-scale, the need for faster data transmission and more efficient hardware interconnects has grown significantly. Credo Technology Group Holding Ltd.’s ((CRDO - Free Report) ) sophisticated retimer solutions address these demands by minimizing data transfer bottlenecks and improving overall system performance and connectivity.
Credo’s retimers and PCIe OSFP-XD AECs improve PCIe cabling by overcoming limits of PCB and passive cables in PCIe 6.0/7.0 systems. By placing retimers on the PCB or in the cable, they reduce insertion loss and extend reach up to seven meters for in-rack and rack-to-rack use.
Strong Retimer sales are driven by its 50G and 100G Ethernet solutions, which offer key features like MACsec encryption, gearboxing and software support. CRDO’s customers now include top AI server makers and switch vendors, highlighting strong demand in AI systems. For fiscal 2026, it anticipates robust growth as more customers transition to 100G per lane solutions and seek system-level and software expertise for complex AI architectures. The new PCIe Gen6 Retimer family, led by the 2CAN Retimer, passed PCIe compliance testing and demonstrated strong performance. Live demos at GTC, OFC and Computex with two top ODMs confirmed its capabilities.
Customer interest in PCIe Retimers is rapidly growing, with design wins anticipated in 2025 and production revenues in 2026. The company’s strength lies in its advanced SerDes technology, a customer-first approach and system-level innovation that offers improved latency, reach and power efficiency. Its PILOT telemetry software also accelerates development, boosts yields and enhances system monitoring—key advantages highlighted by customers.
Per a report from Verified Market Reports, the PCIe Retimer market size was valued at $1.2 billion in 2024 and is projected to achieve $2.8 billion by 2033, at a CAGR of 11.5% (2026-2033). Credo’s retimer business is a clear engine of growth and innovation. In tandem with its Retimer business, the company is well-positioned to benefit from its Optical DSP and AEC offerings. CRDO expects its revenues to exceed $800 million in fiscal 2026, implying year-over-year growth of more than 85%.
CRDO’s Cut-Throat Competitors in the PCIe Retimer Market
Astera Labs ((ALAB - Free Report) ) develops semiconductor-based connectivity solutions tailored for cloud and AI infrastructure. ALAB is advancing next-gen data center infrastructure with the introduction of a PCIe 6-ready reference design based on NVIDIA Blackwell-based MGX platform that leverages Scorpio Smart Fabric Switches for AI and cloud infrastructure. It has showcased the first end-to-end PCIe 6 interoperability with NVIDIA’s Blackwell GPU and Micron’s NVMe SSD, with both Aries 6 PCIe Smart Retimer and Scorpio-P PCIe SmartFabric Switch.
It has emerged as a key player in next-generation data center connectivity, with a full-stack portfolio spanning PCIe 6.0, Ultra Accelerator Link and CXL 3.0. The company has moved its Scorpio PCB switches and Aries 6 retimers into volume production, set to ramp up in late second-quarter fiscal 2025 for AI rack-scale systems. It also launched the Aries 6 PCIe Smart Gearbox to link PCIe 5 and PCIe 6, with several hyperscalers using it for AI and compute platforms. A cutting-edge product lineup, combined with solid demand from hyperscalers, is projected to support its long-term revenue growth.
San Jose, CA-based Broadcom ((AVGO - Free Report) ) is a premier designer, developer and global supplier of a broad range of semiconductor devices. Targeting enterprise, hyperscale data centers and service providers, its portfolio includes advanced technologies such as DSP, Ethernet, optical interconnect, PCIe, SerDes, XPU and physical layer solutions, all aimed at enhancing performance and connectivity across AI-driven infrastructure. It has launched its PCIe Gen 6 portfolio, featuring high-port switches and retimers tested for interoperability with partners like Micron and Teledyne LeCroy. AVGO’s in-house SerDes technology and collaboration with ecosystem partners aim to support scalable AI clusters.
CRDO Price Performance, Valuation and Estimates
Shares of CRDO have surged 216.6% in the past year compared with the Electronics-Semiconductors industry’s growth of 27.9%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, CRDO is trading at 18.86, higher than the Electronic-Semiconductors sector’s multiple of 8.78.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has seen a significant uptick over the past 60 days.
Image Source: Zacks Investment Research
CRDO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.