stockrowWhat it does
Credo Technology Group Holding Ltd. designs connectivity products that move data between equipment in data centers and other networks. Its customers include large cloud providers, emerging cloud companies, equipment makers and optical module manufacturers. Credo was founded in 2008.
Its products include active electrical cables: copper cables with electronics that help carry signals between servers, network switches and other equipment. The ZeroFlap cable family includes products for connections within and between racks. Credo also sells optical transceivers and chips used in optical connections, which can carry data over longer distances.
The company’s chips include digital signal processors, which process communications signals, and retimers, which help extend connections between devices. Its SerDes technology converts data between parallel and serial forms for transmission. Credo sells SerDes chiplets for customers to incorporate into their own chip packages and licenses SerDes intellectual property.
Credo also offers OmniConnect memory connectivity solutions and PILOT software for monitoring and diagnosing links. Its products draw on its own SerDes and digital signal processing technology. The company develops both standard products and solutions tailored to individual customers; it can also sell tailored parts or license the underlying technology more broadly. Manufacturing, assembly and testing are handled by outside partners rather than Credo-owned factories.
How it makes money
Credo operates one reportable segment. Most revenue comes from shipments of active electrical cables and integrated circuits, primarily to hyperscalers, emerging cloud providers and other cloud infrastructure companies. It also sells software and licenses intellectual property, principally its SerDes technology.
Fiscal 2026 revenue was $1.3 billion, compared with $436.8 million in fiscal 2025.
The cable business supplies products for several data-center connection needs. ZeroFlap cables link equipment within and between racks, while other versions connect a high-speed port to lower-speed ports or connect a network interface to two switches. Integrated circuits include signal processors used in optical transceivers, as well as retimers and chiplets for other connections. Credo also offers optical transceivers and memory connectivity products.
Credo generally transacts through standard purchase orders and recognizes product revenue when control of goods transfers to the customer. Customers can generally cancel or change orders with limited notice before the scheduled shipment date. Standard product warranties run for twelve months after delivery, and certain distributors have limited return rights.
The company engages both end users and their suppliers. In some cases an end customer requires its equipment or contract manufacturing suppliers to use Credo’s solutions. Some end customers place orders through contract manufacturers, which are then recorded as the customer for financial reporting. Credo develops products for particular customer needs as well as for broader sale; after development, a tailored part or its intellectual property can generally be offered to other customers. Revenue increased in fiscal 2026 principally as cable shipments rose at hyperscale data-center customers.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Reportable Segment | $1.3 billion | 100.0% | 205.7% |
Customers and how it sells
Credo sells to hyperscalers, emerging cloud providers, original equipment and design manufacturers, contract manufacturers and optical module makers. It also sells into enterprise and high-performance computing markets. Its direct sales force is supported by marketing, business development and application engineering teams, with a sales presence in North America, Asia and Europe.
The company targets both the users of its products and the suppliers that build equipment for them. Some end customers have contract manufacturers place orders, so the contracting manufacturer can appear as the customer in Credo’s financial reporting rather than the ultimate user.
Credo relies on a limited number of customers for a significant part of revenue. Its top 10 customers accounted for approximately 90% of fiscal 2026 revenue. Customer A represented 49.0% and Customer B represented 32.0% of fiscal 2026 revenue. Credo expects to continue relying on a limited number of customers for a significant portion of revenue.
United States revenue was $768.1 million in fiscal 2026, or 57.5% of revenue. Hong Kong revenue was $378.2 million, or 28.3%. Credo also recorded revenue in China, Taiwan and the rest of the world.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| United States | $768.1 million | 57.5% | 1,079.9% |
| Hong Kong | $378.2 million | 28.3% | 55.2% |
| Rest of World | $85.2 million | 6.38% | 92.4% |
| China | $80.9 million | 6.06% | 1.09% |
| Taiwan | $22.7 million | 1.70% | 527.1% |
Suppliers and costs
Credo uses a fabless model: it designs products but relies on outside companies to manufacture, assemble and test them. In fiscal 2026, Taiwan Semiconductor Manufacturing Company was its exclusive supplier for semiconductor wafer production. Credo used Amkor Technology and Advanced Semiconductor Engineering for chip packaging, King Yuan Electronics and Sigurd Microelectronics for chip testing, and BizLink Technology to manufacture active electrical cables.
The company qualifies contractors and their processes before using them for its products. Its engineers work with the foundry and other contractors on manufacturing yields, costs and quality. Credo generally does not maintain long-term supply contracts with TSMC or its other third-party manufacturers and suppliers.
Cost of revenue includes wafers, packaging, assembly, testing and shipping, as well as manufacturing support, logistics, warranties and purchased intellectual property. Research and development costs include employees, design activities, prototype wafers and testing. Fiscal 2026 research and development expense was $279.4 million, compared with $146.9 million in fiscal 2025. Credo expects research and development expenses to continue increasing in absolute dollars.
- Revenue$1.3B
- Cost of revenue−$426.8M
- Research and development−$279.4M
- Selling, general and administrative−$184.0M
- Operating income$445.0M
Competitive position
Credo names Broadcom, Marvell Technology and Astera Labs as principal product competitors, alongside various cable and optical transceiver suppliers. It says competitors typically address some, rather than all, of its solutions. Competition depends on product performance, power use and cost, the range of products offered, timely volume delivery, new features and intellectual property protection.
It was reported on 28 October 2026 that MaxLinear aims to win 20% to 30% of the next-generation 1.6T active electrical cable market over the next couple of years. Credo expects competition to increase as its market grows and connectivity technology advances.
Credo’s products use its own SerDes and digital signal processing technology. It protects technology through patents, trade secrets, copyrights, trademarks and contracts. The company also says its architecture lets it use mature manufacturing processes while delivering performance and power efficiency.
Our reading: Credo’s proprietary designs and intellectual property provide a technological basis for differentiation, although patents can be challenged or circumvented. Our reading: Its range of cables, chips and software, together with direct customer relationships, can support sales across multiple connection needs; customers nevertheless have alternatives for individual products. Our reading: Credo’s design work with customers can help it address their requirements, but continuing to win designs depends on product performance, cost and timely delivery.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Broadcom Ltd. | Connectivity products | High |
| Marvell Technology, Inc. | Connectivity products | High |
| Astera Labs, Inc. | Connectivity products | High |
| MaxLinear | Next-generation active electrical cables | Medium |
Growth opportunities
Fiscal 2026 revenue grew 205.7% from fiscal 2025. Credo attributes the increase primarily to higher active electrical cable shipments; the ramp-up of those solutions at hyperscale data-center customers contributed over 99% of the revenue increase.
Credo serves data infrastructure markets driven by hyperscale data centers and emerging cloud providers building AI and machine-learning infrastructure, as well as general computing. The company says growing model sizes and the expansion from training to inference have increased demand for bandwidth, reliability and power efficiency. It also expects demand for more sophisticated connectivity solutions to grow as server and consumer-device standards move to higher data rates.
Its strategy includes further investment in SerDes design, new products, expansion into adjacent markets and acquiring customers. Credo also intends to sell more of its connectivity solutions to existing customers. Its direct relationships give it insight into customer designs, specifications and production timelines.
Newer offerings include OmniConnect and its Weaver memory product, designed to extend memory connectivity for AI systems. Credo is also developing microLED-based solutions, including active LED cables intended to extend connection reach between racks. Its Bluebird signal processor targets optical transceivers for high-density AI data centers. The company expects research and development spending to rise in absolute dollars as it continues investing in products.
- $106.5MFY2022
- $184.2MFY2023
- $193.0MFY2024
- $436.8MFY2025
- $1.3BFY2026
Structural risks
- Customer concentration: Credo depends on a limited number of customers for a substantial portion of revenue. Its ability to maintain relationships and achieve design wins affects its business, and significant customers may pursue vertical integration.
- Outsourced supply: The company relies on third-party wafer fabrication, assembly and testing. Capacity shortages, material shortages, reduced yields, higher prices or disruptions could affect supply. It generally does not have long-term supply contracts with its manufacturers and suppliers.
- Product and market development: Credo’s target markets may not grow as expected. Its results depend on defining and introducing products that meet customers’ next-generation needs and on the success of customers’ own products.
- Competition and intellectual property: Credo must compete on performance, power efficiency, cost and delivery. It also needs to protect its intellectual property and defend against potential infringement claims. Its patents may be challenged, invalidated or circumvented.
- International operations: Trade restrictions, tariffs, export licensing requirements and changes in political or economic conditions can affect operations. Credo’s assembly and testing subcontractors are primarily in Asia, and disruptions or transportation delays can affect its supply chain.
Bottom line
Our reading
Our reading: Credo is a product-focused connectivity business whose recent growth rests heavily on active electrical cables for hyperscale data centers. Its proprietary chip designs and customer relationships support a range of offerings, but revenue remains concentrated among a few customers. Its fabless model also leaves production dependent on outside suppliers, including a single wafer foundry.