Credo Technology
High-speed connectivity pure-play for AI clusters — Active Electrical Cables (AECs), optical DSPs, SerDes IP, and PCIe retimers, with effectively all revenue tied to AI data center buildout. Record Q4 FY2026 (reported June 1) revenue $437M (+157% YoY, +7% QoQ) — Q4 alone exceeded all of FY2025; FY2026 revenue $1.3B (+206% YoY) at 68.1% gross margin with non-GAAP net income $662M (5x YoY). FY2027 guided to >80% total revenue growth with the optical portfolio (discrete DSPs, silicon photonics PICs via Dust Photonics, ZeroFlap modules) expected to contribute >$600M. Four customers each represented ≥10% of Q4 revenue (largest 34%) — concentration is improving but remains the defining structural risk.
Scenarios
AECs are becoming the standard intra-rack interconnect as AI clusters scale to 100/200G per lane — Credo created and leads the category. Optical DSPs and PCIe Gen 6 retimers add second and third growth curves on top of >80% guided FY2027 growth at 68% gross margin.
Top customer 34% of revenue and top four ≥10% each — any hyperscaler architecture shift or insourcing creates a material hole. Competition from Marvell, Broadcom, and Astera Labs in DSPs/retimers; co-packaged optics could long-term compress the copper-interconnect niche. Premium valuation prices flawless execution.
Key Factors to Watch
- ●Q4 FY2026 record $437M (+157% YoY); FY2026 $1.3B (+206% YoY); FY2027 guided >80% growth
- ●AEC category leader at 100/200G per lane across hyperscalers and Neo Cloud operators
- ●Optical portfolio guided >$600M in FY2027 (DSPs + silicon photonics + ZeroFlap each >$100M) — diversifies beyond copper
- ●Four customers ≥10% of Q4 revenue (largest 34%) — customer concentration is the core structural risk
- ●Management flags supply chain tightness as the gating factor for the H2 FY2027 ramp
Manufacturing Peers
Last researched: 2026-06-11
This is research and analysis, not financial advice. Scores reflect AI impact potential, not investment recommendations.