Credo Technology Group(NASDAQ) CRDO

Credo makes chips and cables for big data centers. These tools help artificial intelligence move data quickly. The products reduce energy use for cloud companies.

Tools for a Faster Internet

• Active Electrical Cables: High-speed copper cables for data center servers; drove over 99% of revenue growth in fiscal 2026.
• Digital Signal Processors: High-performance chips that clean and strengthen data signals to maintain network speed and reliability.
• SerDes Chiplets: Connectivity components that use Serializer/Deserializer technology to turn slow, wide data streams into fast, single-lane streams for efficient transmission.
• IP Solutions: Licensing of proprietary high-speed design technology to other semiconductor and hardware manufacturers.

Expanding the Technical Portfolio

• Acquired Hyperlume and Comira in fiscal 2026 to expand its system-level connectivity offerings.
• Introduced the Bluebird signal processor in September 2025 to support next-generation network speeds in artificial intelligence data centers.
• Developed the OmniConnect platform and Weaver memory fanout gearbox in late 2025 to help artificial intelligence systems access more memory.
• Partnered with Oracle to develop ZeroFlap optics that improve reliability in large-scale computer clusters.

Why the Technology Wins

Credo uses an architectural approach that allows it to build high-performance chips using older manufacturing processes. This strategy provides a cost advantage over competitors who must use more expensive production methods. The company operates a fabless business model where partners like TSMC handle the actual manufacturing.

Performance by the Numbers

• Total revenue was $1.3 billion in fiscal 2026, up 205.7% year-over-year.
• Net income rose to $472.3 million in fiscal 2026 from $52.2 million in the prior year.
• Gross margin was 68% in fiscal 2026, up 3.2 percentage points year-over-year.
• Cash and cash equivalents reached $1.2 billion as of May 2, 2026.
• Sales to the top 10 customers accounted for 90% of total revenue in fiscal 2026.

Bottom Line

Credo has transitioned from a technology licensing firm into a major supplier of hardware for the artificial intelligence era. Its ability to provide energy-efficient connections has made it a key partner for the world's largest cloud infrastructure providers.