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The company secured an 800G DSP transceiver design win, with deployments set for fiscal 2026.
Revenue is projected to surpass $800M in fiscal 2026 on rising AI-driven connectivity demand.
Credo Technology Group Holding Ltd ((CRDO - Free Report) ) offers low-power, high-performance PAM4 digital signal processor (DSP) ICs that provide optical interconnects for hyperscale data centers, AI infrastructure, 5G networks and enterprise upgrades. Supporting 50Gb/s to 1.6Tb/s PAM4 optical transceivers and active optical cables, the portfolio addresses diverse network architectures. Designed for efficiency, Credo’s DSPs deliver cutting-edge performance with low latency and power, while remaining cost-optimized.
Fiscal 2025 was a strong year for Credo’s optical business, marked by solid revenue growth and broader customer adoption. The company achieved a significant DSP design win for an 800G transceiver, with initial deployments anticipated in fiscal 2026. At the OFC Conference, Credo introduced ultra-low-power 100 gig per lane optical DSPs and a 3-nanometer 200 gig per lane DSP, elevating industry standards in power efficiency and signal integrity.
Looking ahead, Credo anticipates continued demand in the rapidly growing optical connectivity market, where reliability and energy efficiency are becoming increasingly important. The company is well-positioned to deliver system-level innovations that provide significant advantages for its partners. With increasing technology differentiation and an expanding system-level opportunity, it expects expanding revenue growth in the long run.
The optical business is expected to witness growth of 2x or more in fiscal 2026, with strong momentum in 100 gig per lane solutions and preparation for the 200 gig per lane market. Management expects fiscal 2026 total revenues to exceed $800 million, driven by accelerating adoption of high-speed connectivity solutions in AI-focused data centers, continued innovation across AEC, optical and retimer product lines, and an expanding, diversified customer base.
How Rivals Stack Up Against CRDO
Marvell Technology, Inc. ((MRVL - Free Report) ) is a semiconductor company with a broad portfolio spanning custom ASICs, data center switches and 5G solutions. It reported record first-quarter revenues of $1.895 billion, up 63% year over year, with strong growth expected to continue in the second quarter. The momentum is driven by surging AI demand in data centers, supported by scaling custom silicon programs and robust electro-optics shipments.
It showcased its leadership in optical interconnects at the Optical Fiber Conference, including the industry’s first 400-gig per lane PAM technology. The company is ramping its 1.6T optical solutions, with 5-nanometer products shipping and 3-nanometer solutions expected to ramp up next year. Strong demand for 800-gig solutions continues, with 1.6T expected to drive growth in 2025 and beyond. For the second quarter of fiscal 2026, MRVL projects revenues of around $2 billion (+/-5%), suggesting an estimated 57% increase from the previous year.
Broadcom ((AVGO - Free Report) ) is committed to technology leadership, delivering category-leading solutions across both semiconductors and infrastructure software. Driven by strong demand for its AI semiconductor solutions and VMware, AVGO reported second-quarter fiscal 2025 revenues of $15 billion, up 20% year over year.
Management noted that although copper interconnects dominate the market currently, larger clusters will require optical interconnects, driving adoption of co-packaged or pluggable optics. The company is well-positioned to lead this transition, with its switches supporting up to 512 connections for scale-up environments. Going ahead, it expects AI semiconductor revenues to grow 60% to $5.1 billion in the fiscal third quarter, marking 10 straight quarters of growth as investments from hyperscale partners in AI XPUs and connectivity solutions for AI data centers continue. For the fiscal third quarter, AVGO projects revenues of $15.8 billion, up 21% year over year.
CRDO’s Price Performance, Valuation and Estimates
Shares of CRDO gained 78.6% year to date compared with the Electronics-Semiconductors industry’s growth of 16.4%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, CRDO is trading at 23.73, higher than the Electronic-Semiconductors sector’s multiple of 8.79.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has been unchanged over the past 60 days.
Image: Bigstock
Is Credo's Optical DSP Business Set to Spur Growth & Revenue Momentum?
Key Takeaways
Credo Technology Group Holding Ltd ((CRDO - Free Report) ) offers low-power, high-performance PAM4 digital signal processor (DSP) ICs that provide optical interconnects for hyperscale data centers, AI infrastructure, 5G networks and enterprise upgrades. Supporting 50Gb/s to 1.6Tb/s PAM4 optical transceivers and active optical cables, the portfolio addresses diverse network architectures. Designed for efficiency, Credo’s DSPs deliver cutting-edge performance with low latency and power, while remaining cost-optimized.
Fiscal 2025 was a strong year for Credo’s optical business, marked by solid revenue growth and broader customer adoption. The company achieved a significant DSP design win for an 800G transceiver, with initial deployments anticipated in fiscal 2026. At the OFC Conference, Credo introduced ultra-low-power 100 gig per lane optical DSPs and a 3-nanometer 200 gig per lane DSP, elevating industry standards in power efficiency and signal integrity.
Looking ahead, Credo anticipates continued demand in the rapidly growing optical connectivity market, where reliability and energy efficiency are becoming increasingly important. The company is well-positioned to deliver system-level innovations that provide significant advantages for its partners. With increasing technology differentiation and an expanding system-level opportunity, it expects expanding revenue growth in the long run.
The optical business is expected to witness growth of 2x or more in fiscal 2026, with strong momentum in 100 gig per lane solutions and preparation for the 200 gig per lane market. Management expects fiscal 2026 total revenues to exceed $800 million, driven by accelerating adoption of high-speed connectivity solutions in AI-focused data centers, continued innovation across AEC, optical and retimer product lines, and an expanding, diversified customer base.
How Rivals Stack Up Against CRDO
Marvell Technology, Inc. ((MRVL - Free Report) ) is a semiconductor company with a broad portfolio spanning custom ASICs, data center switches and 5G solutions. It reported record first-quarter revenues of $1.895 billion, up 63% year over year, with strong growth expected to continue in the second quarter. The momentum is driven by surging AI demand in data centers, supported by scaling custom silicon programs and robust electro-optics shipments.
It showcased its leadership in optical interconnects at the Optical Fiber Conference, including the industry’s first 400-gig per lane PAM technology. The company is ramping its 1.6T optical solutions, with 5-nanometer products shipping and 3-nanometer solutions expected to ramp up next year. Strong demand for 800-gig solutions continues, with 1.6T expected to drive growth in 2025 and beyond. For the second quarter of fiscal 2026, MRVL projects revenues of around $2 billion (+/-5%), suggesting an estimated 57% increase from the previous year.
Broadcom ((AVGO - Free Report) ) is committed to technology leadership, delivering category-leading solutions across both semiconductors and infrastructure software. Driven by strong demand for its AI semiconductor solutions and VMware, AVGO reported second-quarter fiscal 2025 revenues of $15 billion, up 20% year over year.
Management noted that although copper interconnects dominate the market currently, larger clusters will require optical interconnects, driving adoption of co-packaged or pluggable optics. The company is well-positioned to lead this transition, with its switches supporting up to 512 connections for scale-up environments. Going ahead, it expects AI semiconductor revenues to grow 60% to $5.1 billion in the fiscal third quarter, marking 10 straight quarters of growth as investments from hyperscale partners in AI XPUs and connectivity solutions for AI data centers continue. For the fiscal third quarter, AVGO projects revenues of $15.8 billion, up 21% year over year.
CRDO’s Price Performance, Valuation and Estimates
Shares of CRDO gained 78.6% year to date compared with the Electronics-Semiconductors industry’s growth of 16.4%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, CRDO is trading at 23.73, higher than the Electronic-Semiconductors sector’s multiple of 8.79.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has been unchanged over the past 60 days.
Image Source: Zacks Investment Research
CRDO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.