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Credo Expands AI Connectivity Portfolio With 1.6T ZeroFlap ALC
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Key Takeaways
Credo launches its 1.6T ZeroFlap Active Light Cable to address rising AI network connectivity requirements.
CRDO highlighted that the new ALC uses nearly 30% less power and weighs 10 times lighter than AECs.
CRDO expects ALC shipments in 2027 as it expands the optical portfolio amid rising AI demand and competition.
Credo Technology Group Holding Ltd. (CRDO - Free Report) recently expanded its AI connectivity portfolio with the launch of 1.6T ZeroFlap Active Light Cable (“ALC”).
The wide-parallel optical interconnect solution is built for next-generation AI infrastructure, addressing rising reliability and energy-efficiency requirements. The solution targets AI scale-out and front-end networks, strengthening Credo’s position in next-generation optical interconnects.
The ZF ALC leverages dense arrays of micro-emitters and photodetectors integrated with lightweight fiber bundles. CRDO highlighted that the new ALC is designed to draw 12 watts per cable end, nearly 30% less power than comparable active electrical cables (AECs). The solution is also 10 times lighter than AECs.
Moreover, built-in channel redundancy and ZeroFlap link monitoring enable hitless failover, added Credo. The solution targets a reach of up to 50 meters and reliability of 100 million hours mean time between failures. By combining extended reach with lower power consumption and enhanced reliability features, the product could help Credo address the connectivity requirements of expanding GPU clusters. Shipments are expected to begin in 2027. CRDO will demonstrate its latest portfolio of copper and optical interconnect solutions at the OCP Global Summit Expo Hall from Oct. 13 to Oct. 15, 2026.
Credo Technology Group Holding Ltd. Revenue (Quarterly)
Alongside the new ALC, the company announced the launch of the Short-Reach Micro-Emitter Optics Workstream within the Open Compute Project community. The initiative, backed by a leading hyperscaler and optical technology providers, including AFL, ams OSRAM and BizLink, aims to advance the development of the wide, parallel optical connectivity ecosystem.
The latest developments build on the company’s expanding product portfolio. On Sept. 15, 2026, Credo launched its new family of 224G-based ZF optical transceivers. The new products extend Credo’s ZF architecture to 1.6T port speeds and combine its 224G-per-lane optical DSP with the Kfir200 silicon photonics-based PICs and latest-generation PILOT diagnostics platform. The products are available in 2xDR4, 2xFR4 and DR8 configurations, supporting a range of AI scale-out interconnect architectures.
The acquisition of DustPhotonics in May further strengthened Credo’s silicon photonics capabilities, supporting its optical connectivity strategy.
The new ALC expands Credo’s addressable connectivity opportunities as AI infrastructure deployments scale. However, macroeconomic uncertainties and exposure to the AI investment cycle amid increasing competition from players such as Broadcom (AVGO - Free Report) , Marvell Technology (MRVL - Free Report) and Astera Labs are concerns.
Mapping the Competitive Terrain
Broadcom represents significant competitive pressure given its broad AI networking footprint. Third-quarter fiscal 2026 AI semiconductor revenues grew 221% year over year and up 54% sequentially to $16.7 billion. The company is strengthening its AI networking portfolio with advanced Ethernet switching and optical connectivity solutions.
At the 2026 OCP Global Summit, AVGO is showcasing its Tomahawk 6, Tomahawk Ultra, Jericho 4 Ethernet switches, third-generation TH6-Davisson co-packaged optics and Thor Ultra 800G and Thor 2 400G AI Ethernet NICs. This portfolio is designed to address the rising bandwidth demands of next-generation frontier AI models.
The company expects fiscal 2026 AI revenues of about $58 billion, up 186% year over year and approximately $115 billion in fiscal 2027. Broadcom further sees AI semiconductor revenues doubling again to roughly $230 billion in fiscal 2028.
Marvell Technology will be showcasing comprehensive AI data center infrastructure solutions, including its Ara DSP 1.6T transmit-retimed optics, 1.6T AEC, alongside the Teralynx T100 102.4T data center switch at the OCP Global Summit 2026. MRVL also recently demonstrated advanced 2nm optical interconnect technologies, including 400G-per-lane optical PAM4.
On the last earnings call, management said that it expects copper and optical interconnects to coexist for several years, even as larger-scale deployments increasingly migrate toward optics. Marvell Technology reported second-quarter fiscal 2027 data center revenues of $2.17 billion, up 46% year over year and 18% sequentially. Tailwinds across interconnect, switching and custom businesses remain the key growth drivers.
CRDO Price Performance, Valuation and Estimates
CRDO’s shares are up 33.8% in the past month compared with the Electronics-Semiconductors industry’s growth of 6.3%.
Image Source: Zacks Investment Research
Credo is trading at a forward 12-month price/earnings ratio of 26.29X, higher than the Electronics-Semiconductors sector’s multiple of 13.3X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2027 has seen 4.2% upward revision over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Credo Expands AI Connectivity Portfolio With 1.6T ZeroFlap ALC
Key Takeaways
Credo Technology Group Holding Ltd. (CRDO - Free Report) recently expanded its AI connectivity portfolio with the launch of 1.6T ZeroFlap Active Light Cable (“ALC”).
The wide-parallel optical interconnect solution is built for next-generation AI infrastructure, addressing rising reliability and energy-efficiency requirements. The solution targets AI scale-out and front-end networks, strengthening Credo’s position in next-generation optical interconnects.
The ZF ALC leverages dense arrays of micro-emitters and photodetectors integrated with lightweight fiber bundles. CRDO highlighted that the new ALC is designed to draw 12 watts per cable end, nearly 30% less power than comparable active electrical cables (AECs). The solution is also 10 times lighter than AECs.
Moreover, built-in channel redundancy and ZeroFlap link monitoring enable hitless failover, added Credo. The solution targets a reach of up to 50 meters and reliability of 100 million hours mean time between failures. By combining extended reach with lower power consumption and enhanced reliability features, the product could help Credo address the connectivity requirements of expanding GPU clusters. Shipments are expected to begin in 2027. CRDO will demonstrate its latest portfolio of copper and optical interconnect solutions at the OCP Global Summit Expo Hall from Oct. 13 to Oct. 15, 2026.
Credo Technology Group Holding Ltd. Revenue (Quarterly)
Credo Technology Group Holding Ltd. revenue-quarterly | Credo Technology Group Holding Ltd. Quote
Alongside the new ALC, the company announced the launch of the Short-Reach Micro-Emitter Optics Workstream within the Open Compute Project community. The initiative, backed by a leading hyperscaler and optical technology providers, including AFL, ams OSRAM and BizLink, aims to advance the development of the wide, parallel optical connectivity ecosystem.
The latest developments build on the company’s expanding product portfolio. On Sept. 15, 2026, Credo launched its new family of 224G-based ZF optical transceivers. The new products extend Credo’s ZF architecture to 1.6T port speeds and combine its 224G-per-lane optical DSP with the Kfir200 silicon photonics-based PICs and latest-generation PILOT diagnostics platform. The products are available in 2xDR4, 2xFR4 and DR8 configurations, supporting a range of AI scale-out interconnect architectures.
The acquisition of DustPhotonics in May further strengthened Credo’s silicon photonics capabilities, supporting its optical connectivity strategy.
The new ALC expands Credo’s addressable connectivity opportunities as AI infrastructure deployments scale. However, macroeconomic uncertainties and exposure to the AI investment cycle amid increasing competition from players such as Broadcom (AVGO - Free Report) , Marvell Technology (MRVL - Free Report) and Astera Labs are concerns.
Mapping the Competitive Terrain
Broadcom represents significant competitive pressure given its broad AI networking footprint. Third-quarter fiscal 2026 AI semiconductor revenues grew 221% year over year and up 54% sequentially to $16.7 billion. The company is strengthening its AI networking portfolio with advanced Ethernet switching and optical connectivity solutions.
At the 2026 OCP Global Summit, AVGO is showcasing its Tomahawk 6, Tomahawk Ultra, Jericho 4 Ethernet switches, third-generation TH6-Davisson co-packaged optics and Thor Ultra 800G and Thor 2 400G AI Ethernet NICs. This portfolio is designed to address the rising bandwidth demands of next-generation frontier AI models.
The company expects fiscal 2026 AI revenues of about $58 billion, up 186% year over year and approximately $115 billion in fiscal 2027. Broadcom further sees AI semiconductor revenues doubling again to roughly $230 billion in fiscal 2028.
Marvell Technology will be showcasing comprehensive AI data center infrastructure solutions, including its Ara DSP 1.6T transmit-retimed optics, 1.6T AEC, alongside the Teralynx T100 102.4T data center switch at the OCP Global Summit 2026. MRVL also recently demonstrated advanced 2nm optical interconnect technologies, including 400G-per-lane optical PAM4.
On the last earnings call, management said that it expects copper and optical interconnects to coexist for several years, even as larger-scale deployments increasingly migrate toward optics. Marvell Technology reported second-quarter fiscal 2027 data center revenues of $2.17 billion, up 46% year over year and 18% sequentially. Tailwinds across interconnect, switching and custom businesses remain the key growth drivers.
CRDO Price Performance, Valuation and Estimates
CRDO’s shares are up 33.8% in the past month compared with the Electronics-Semiconductors industry’s growth of 6.3%.
Image Source: Zacks Investment Research
Credo is trading at a forward 12-month price/earnings ratio of 26.29X, higher than the Electronics-Semiconductors sector’s multiple of 13.3X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2027 has seen 4.2% upward revision 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 Rank (Strong Buy) stocks here.