Fact Summary
Credo Technology Group Holding Ltd (CRDO) is a fabless semiconductor company supplying high-speed connectivity solutions for AI data centers (AEC cables, optical DSPs, retimers, etc.). For FY2026 (ended 2026-05-02), it recorded revenue of 1,335,116,000 USD (+205.7% YoY) and net income of 472,279,000 USD (10-K, accession no. 0001628280-26-043303). As of 2026-08-14, the closing price was 259.9 USD (-2.29% from the previous day), with a market capitalization of 48,465,604,552 USD. Approximately 90% of FY2026 revenue came from the top 10 customers, with the top three customers accounting for 34%, 27%, and 16% respectively (10-K, as of 2026-06-15). From June to August 2026, executives including the CTO, CFO, and COO disposed of company shares under Rule 10b5-1 pre-arranged trading plans (SEC Form 4).
Price-Change Context Note
CRDO's share price underwent two rounds of correction following its May (5/11–16) and June 2026 earnings releases, driven by high-valuation concerns and executive share disposals; after hitting an all-time high of 302.52 USD on June 22, it fell to 259.9 USD by August 14 (down approximately -15.8% from the 52-week high of 308.67 USD). Over the same period, the PHLX Semiconductor Index (SOX) was also in a correction phase relative to its 52-week high of 14,655.29 (12,417.05 as of 2026-08-14, -0.31%).
Business Overview
Credo Technology Group Holding Ltd is a Cayman Islands holding company with its operational headquarters in San Jose, California, that designs and supplies high-speed connectivity solutions for AI and data infrastructure based on proprietary SerDes/DSP architecture. Its key product lines include ZeroFlap Active Electrical Cables (AEC), ZeroFlap optical transceivers, optical DSPs, silicon photonics PICs, OmniConnect memory solutions, and retimers for Ethernet and PCIe. As of 2026-05-02, the company had 807 employees (616 engineers), comprising 330 in North America and 477 in Asia (source: Forbes, StockTitan 10-K summary, as of 2026-06-15).
As hyperscalers and NeoClouds upgrade their networks from 400G to 800G and, increasingly, to 1.6T, demand for high-density, low-power interconnects is expanding, with the AEC business currently serving as the core growth engine as revenue grows in both intra-rack and inter-rack applications. At the FMS 2026 exhibition (2026-08-04 to 06), the company unveiled OmniConnect Weaver (an AI memory and chip-to-chip interconnect) and the PCIe 6.0-capable Toucan retimer (Credo IR press release, as of 2026-08-03).
5-Year Financial Trend
| Fiscal Year | Revenue YoY | Operating Margin | Net Margin |
|---|---|---|---|
| FY2023 | +73.0% | -11.5% | -9.0% |
| FY2024 | +4.8% | -19.2% | -14.7% |
| FY2025 | +126.4% | +8.5% | +11.9% |
| FY2026 | +205.7% | +33.3% | +35.4% |
After three consecutive years of operating losses from FY2022 to FY2024, the company turned profitable at the operating level in FY2025, and its operating margin expanded to 33.3% in FY2026. Over the same period, total equity grew from 681,582,000 USD (FY2025) to 2,063,612,000 USD (FY2026); whether this increase stemmed from equity issuance or convertible note conversions is not confirmed (10-K financial statements; detailed cash flow statement not examined).
Customer Concentration
In the most recent quarter, four hyperscalers each contributed more than 10% of revenue, and the company also secured a fifth hyperscaler customer. In the absence of long-term purchase agreements, an order pause or delay from any single hyperscaler customer is immediately reflected in revenue (10-K, as of 2026-06-15).
Valuation (Factual Multiples)
These figures are calculated directly from system-confirmed data as of 2026-08-14; secondary web-research sources (e.g., stockanalysis.com) appear to have been surveyed prior to 8/14 and show a lower market cap (41.26B USD), so caution is warranted in direct comparisons. The company is reported to hold a substantial net cash position, resulting in an enterprise value lower than its market cap (secondary source, reference date unclear).
Peer Comparison
| Company | Latest Quarter Revenue | YoY | Notes |
|---|---|---|---|
| Credo(CRDO) | 437 million USD (Q4 FY26) | +157.0% | AEC market leader, pure-play connectivity |
| Astera Labs(ALAB) | 392.4 million USD (Q2 2026) | +104% | Centered on PCIe retimers, expanding into switches with Scorpio |
| Marvell(MRVL) | TTM 8.71B USD | Not obtained | Data center revenue accounts for 74%; competes directly in AEC via Golden Cable |
Since late 2025, Marvell has directly challenged CRDO's AEC business through its 'Golden Cable' initiative, and Broadcom is cited as a margin-pressure factor in the optical DSP space. Astera Labs is centered on PCIe retimers, a different focus from the inter-rack AEC segment where CRDO holds its strength (sources: Zacks, KoalaGains, TIKR).
Ownership & Flow Trends
Net institutional selling (-2.16 million shares) and a decline in the number of hedge fund holders (from 69 to 59) were observed in Q1 2026, but Q2 2026 13F filings have not yet been obtained. Between 2026-06-30 and 07-21, multiple executives — including the CFO, COO, CTO, and directors — reported disposals under Rule 10b5-1 pre-arranged trading plans, with no acquisition transactions confirmed (SEC Form 4).
Governance & Capital Structure
| Date | Event |
|---|---|
| 2025-03 | Lip-Bu Tan resigns as Chairman (becomes Intel CEO); Brennan begins serving concurrently as Chairman |
| 2025-10-23 | Lip-Bu Tan fully resigns from the board |
| 2025-10-27 | Brian Kelleher (former NVIDIA SVP) appointed as Class III independent director |
| 2026-05-28 | Disclosure of CEO Brennan's grant of 1,437,000 performance-based RSUs (PSUs), subject to dual revenue and stock-price conditions (8-K) |
Co-founder executives (CTO Cheng, COO Lam) reported repeated disposals under Rule 10b5-1 plans in July 2026, including through trusts and offshore entities (SEC Form 4, accession nos. 0001628280-26-052757, 052758, and others). As of 2026-08-17, no updated proxy statement (DEF 14A) is available on EDGAR, so changes since the 2025-08-25 DEF 14A (which listed nine directors) can only be tracked via 8-K filings.
Macro Environment
| Factor | Current Value | Notes |
|---|---|---|
| Fed policy rate | 3.50–3.75% | Held steady for a 2nd consecutive meeting at the 2026-07-29 FOMC |
| US 10-Year Treasury yield | 4.69% | As of 2026-08-17, near highs |
| Nasdaq Composite | 26,729.16 | 2026-08-14 close, -0.28% |
| PHLX Semiconductor Index (SOX) | 12,417.05 | 2026-08-14; in correction from 52-week high of 14,655.29 |
| Hyperscaler AI capex (2026) | approx. 725B USD | Combined Big Four, +77% YoY (secondary source) |
Because most of CRDO's revenue and procurement contracts are USD-denominated, the direct pass-through of currency fluctuations to earnings is limited; however, given its characteristics as a high-PER growth stock, its share price is observed to be highly sensitive to interest-rate movements and semiconductor-sector corrections. The Section 232 semiconductor tariff (25%), effective 2026-01-15, exempts data-center-use chips, so the direct impact is currently limited, but whether the Commerce Department's 2026-07-01 review will adjust the scope of the exemption has not been confirmed.
Recent Developments
| Date | Details |
|---|---|
| 2026-05-08 | Settled a patent lawsuit related to core technology, easing legal uncertainty (counterparty and detailed terms not obtained) |
| 2026-06-01 | Reported Q4/FY2026 results (revenue 437 million USD, Non-GAAP EPS 1.16 USD, above consensus) |
| 2026-06-22 | Reached an all-time high of 302.52 USD |
| 2026-08-03~06 | Unveiled OmniConnect Weaver and the PCIe 6.0 Toucan retimer at FMS 2026; selected as a Best of Show finalist |
| 2026-08-14 | Closing price 259.9 USD (-2.29% from previous day) |
Risk Factors
Approximately 90% of FY2026 revenue came from the top 10 customers, and long-term purchase agreements are absent.
Wafer production is single-sourced from TSMC, and the company also relies on a limited group of Asia-based assembly and cable partners.
As of 2026-08-14, the GAAP P/E ratio stands at 102.6x, and the stock has repeatedly entered correction phases following the May and June earnings releases.
From June to August 2026, the CTO, CFO, COO, and others disposed of company shares under Rule 10b5-1 plans, with no acquisition transactions confirmed.
Marvell's 'Golden Cable,' Broadcom's optical DSP business, and Astera Labs' expanding PCIe retimer lineup are cited as competitive pressures.
As a high-PER growth stock, the company shows high sensitivity to valuation pressure from rising interest rates, and its single-sourcing structure with TSMC exposes it to shifts in geopolitical conditions.
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Fact Highlights
This is not investment advice. FomoLog provides factual summaries and post-hoc price-change context only. Investment decisions and their outcomes are solely the responsibility of the investor.
Generated by FomoLog Agent · Data sources: Korea Exchange · NASDAQ · DART · SEC EDGAR