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Credo Launches 224G PAM4 SerDes IP on TSMC N3 for 1.6T Networking
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Key Takeaways
Credo unveiled 224G PAM4 IP on TSMC's N3, doubling speeds over 112G PAM4.
CRDO's Bluebird DSP delivers 224Gbps per lane under 20W for AI data centers.
The firm sees around 120% revenue growth in fiscal 2026 despite macro challenges.
Credo Technology Group Holding Ltd ((CRDO - Free Report) ) recently introduced its 224G PAM4 SerDes Intellectual Property (IP), fabricated on TSMC’s industry-leading N3 technology.
The move to 224G PAM4 per lane data transmission is a significant step. It provides the networking backbone necessary to support next-generation AI and cloud computing workloads. The doubling of data rates compared to the previous generation (112G PAM4) enables system designers to build 1.6Tbps connectivity solutions with fewer lanes, thereby reducing complexity, cost and power consumption.
Management highlighted a projection from Alan Weckel, Founder and Analyst at 650 Group, stating that the 1.6T networking market is projected to reach $13 billion by 2028, with adoption beginning to ramp by the end of this year. Credo’s latest announcement builds upon a robust and diverse portfolio of SerDes IP offerings that range from 28G to 224G. This comprehensive product family encompasses a wide range of signaling and reach options, enabling customers to design customized connectivity solutions.
Available reach options include long reach plus (LR+), long reach (LR), medium reach (MR) and very short reach plus (VSR). This breadth allows OEMs and silicon solution providers to select the right combination of performance, power and reach to fit their unique system requirements. Importantly, Credo ensures that each IP offering is supported with evaluation boards, simulation models, characterization and reliability reports, design libraries and comprehensive documentation to accelerate time-to-market. This innovative approach allows customers not only to adopt Credo’s IP but also to accelerate their product innovation cycle.
CRDO Rides on Rich Portfolio Amid Macro Headwinds
Credo’s portfolio includes both full DSP and linear receive optical (LRO) solutions. These solutions, supporting port speeds up to 1.6 terabits per second, are gaining strong traction among optical module manufacturers and their hyperscale customers. Its wide range of DSPs supports 50G, 100G, 200G, 400G and 800G PAM4 optical interconnects. By utilizing proprietary DSP technology and advanced equalization techniques, Credo effectively compensates for optical impairments, ensuring optimal system performance, high signal integrity and energy-efficient operation.
Recently, the company introduced its Bluebird DSP, a high-performance, low-power solution for 1.6Tbps optical transceivers, delivering 224Gbps per lane PAM4 data transmission. Bluebird enables transceivers to operate under 20 watts, making them ideal for dense AI and hyperscale data centers. Supporting both full DSP and LRO variants, it offers flexibility for 800G and 1.6T deployments, with ultra-low latency (<40ns), advanced telemetry for real-time monitoring and IEEE-compliant FEC for fiber reaches of up to 2 km and beyond.
For fiscal 2026, it anticipates mid-single-digit sequential revenue growth, resulting in a roughly 120% year-over-year surge. CRDO had earlier expected revenues to surpass $800 million, implying more than 85% year-over-year growth. Non-GAAP net margin is projected to be around 40% both in the upcoming quarters and for fiscal 2026.
Nonetheless, intense market rivalry and broader macroeconomic fluctuations, including evolving tariff policies, are likely to weigh on CRDO’s performance.
CRDO’s Zacks Rank & Stock Price Performance
CRDO currently sports a Zacks Rank #1 (Strong Buy). Shares of the company have surged 232.3% in the past six months compared with the Zacks Electronics-Semiconductors industry's growth of 61.1%.
In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti invests significantly in research and development activities to develop innovative products and state-of-the-art technology, expanding its addressable market and staying at the cutting edge of networking technology. The company believes its new product pipeline will help increase average selling prices for high-performance, best-value products, thus boosting the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.
Headquartered in Carlsbad, CA, Viasat Inc. ((VSAT - Free Report) ) carries a Zacks Rank #2 (Buy). It designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. It provides high-bandwidth, high-performance communication solutions to the public, as well as to military, enterprise, and government agencies. Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models.
InterDigital, Inc. ((IDCC - Free Report) ) currently carries a Zacks Rank #1. The company delivered an average earnings surprise of 54.27% in the trailing four quarters.
InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. It is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. Apart from its strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive significant value, considering the massive size of the market it licenses.
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Credo Launches 224G PAM4 SerDes IP on TSMC N3 for 1.6T Networking
Key Takeaways
Credo Technology Group Holding Ltd ((CRDO - Free Report) ) recently introduced its 224G PAM4 SerDes Intellectual Property (IP), fabricated on TSMC’s industry-leading N3 technology.
The move to 224G PAM4 per lane data transmission is a significant step. It provides the networking backbone necessary to support next-generation AI and cloud computing workloads. The doubling of data rates compared to the previous generation (112G PAM4) enables system designers to build 1.6Tbps connectivity solutions with fewer lanes, thereby reducing complexity, cost and power consumption.
Management highlighted a projection from Alan Weckel, Founder and Analyst at 650 Group, stating that the 1.6T networking market is projected to reach $13 billion by 2028, with adoption beginning to ramp by the end of this year. Credo’s latest announcement builds upon a robust and diverse portfolio of SerDes IP offerings that range from 28G to 224G. This comprehensive product family encompasses a wide range of signaling and reach options, enabling customers to design customized connectivity solutions.
Available reach options include long reach plus (LR+), long reach (LR), medium reach (MR) and very short reach plus (VSR). This breadth allows OEMs and silicon solution providers to select the right combination of performance, power and reach to fit their unique system requirements. Importantly, Credo ensures that each IP offering is supported with evaluation boards, simulation models, characterization and reliability reports, design libraries and comprehensive documentation to accelerate time-to-market. This innovative approach allows customers not only to adopt Credo’s IP but also to accelerate their product innovation cycle.
CRDO Rides on Rich Portfolio Amid Macro Headwinds
Credo’s portfolio includes both full DSP and linear receive optical (LRO) solutions. These solutions, supporting port speeds up to 1.6 terabits per second, are gaining strong traction among optical module manufacturers and their hyperscale customers. Its wide range of DSPs supports 50G, 100G, 200G, 400G and 800G PAM4 optical interconnects. By utilizing proprietary DSP technology and advanced equalization techniques, Credo effectively compensates for optical impairments, ensuring optimal system performance, high signal integrity and energy-efficient operation.
Recently, the company introduced its Bluebird DSP, a high-performance, low-power solution for 1.6Tbps optical transceivers, delivering 224Gbps per lane PAM4 data transmission. Bluebird enables transceivers to operate under 20 watts, making them ideal for dense AI and hyperscale data centers. Supporting both full DSP and LRO variants, it offers flexibility for 800G and 1.6T deployments, with ultra-low latency (<40ns), advanced telemetry for real-time monitoring and IEEE-compliant FEC for fiber reaches of up to 2 km and beyond.
For fiscal 2026, it anticipates mid-single-digit sequential revenue growth, resulting in a roughly 120% year-over-year surge. CRDO had earlier expected revenues to surpass $800 million, implying more than 85% year-over-year growth. Non-GAAP net margin is projected to be around 40% both in the upcoming quarters and for fiscal 2026.
Nonetheless, intense market rivalry and broader macroeconomic fluctuations, including evolving tariff policies, are likely to weigh on CRDO’s performance.
CRDO’s Zacks Rank & Stock Price Performance
CRDO currently sports a Zacks Rank #1 (Strong Buy). Shares of the company have surged 232.3% in the past six months compared with the Zacks Electronics-Semiconductors industry's growth of 61.1%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Ubiquiti Inc. ((UI - Free Report) ) carries a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here
In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti invests significantly in research and development activities to develop innovative products and state-of-the-art technology, expanding its addressable market and staying at the cutting edge of networking technology. The company believes its new product pipeline will help increase average selling prices for high-performance, best-value products, thus boosting the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.
Headquartered in Carlsbad, CA, Viasat Inc. ((VSAT - Free Report) ) carries a Zacks Rank #2 (Buy). It designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. It provides high-bandwidth, high-performance communication solutions to the public, as well as to military, enterprise, and government agencies. Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models.
InterDigital, Inc. ((IDCC - Free Report) ) currently carries a Zacks Rank #1. The company delivered an average earnings surprise of 54.27% in the trailing four quarters.
InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. It is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. Apart from its strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive significant value, considering the massive size of the market it licenses.