Credo Technology Group CRDO is enhancing its footprint in the rapidly expanding AI-interconnect market with the launch of the Blue Heron 224G AI scale-up retimer. With this solution, CRDO gains exposure to the scale-up networking market, which, according to an industry analyst’s estimate, could top $40 billion by 2030, as cited in the press release.
The Blue Heron retimer is purpose-built to support multiple protocols, including UALink, ESUN and Ethernet and enables full recovery of a 40+dB 224G link. Blue Heron enables rack-scale cable backplanes and flexible placement of switch ICs and GPUs for AI scale-up applications.
This solution is built on an advanced 3nm process and leverages Credo’s proprietary 224G SerDes, featuring a 30-tap FFE architecture and an additional 16 taps for reflection cancellation. Blue Heron integrates mission-mode FEC monitoring, advanced telemetry and seamless compatibility with Credo’s PILOT debug GUI, enhancing reliability and ease of deployment.
Credo Technology Group Holding Ltd. Price, Consensus and EPS Surprise
Credo Technology Group Holding Ltd. price-consensus-eps-surprise-chart | Credo Technology Group Holding Ltd. Quote
With sampling underway and production volumes expected in the third quarter of 2026, Blue Heron positions Credo to deepen its exposure to AI-driven demand.
CRDO specializes in high-speed connectivity solutions that are essential for AI data centers. Although CRDO’s leadership in the Active Electrical Cables (AECs) space is at the heart of the growth story, it is now focusing on the IC portfolio, which includes retimers and optical DSPs, and has continued to show a healthy performance. On the lastearnings call management noted that CRDO’s PCIe retimer program remains on track for design wins in fiscal 2026 and revenue contributions in the next fiscal year.
The introduction of three additional pillars, each representing a multi-billion-dollar opportunity, bodes well. These include Zero-Flap optics, active LED cables and OmniConnect gearboxes (Weaver). These three, along with AECs and IC solutions (retimers and optical DSPs), collectively present a total market opportunity likely to surpass $10 billion, more than tripling Credo’s market reach just 18 months ago, as highlighted by management.
Look at Retimer Business for Competitors
Marvell Technology MRVL is a semiconductor company with a diversified product portfolio that includes custom ASICs, data center switches and 5G chips. The data center end market emerged as the company's largest segment, with a contribution of 73% to the third quarter of fiscal 2026 revenues. Interconnect business performance remains impressive. The increasing demand for AECs and retimers, driven by the shift to high-speed PAM-based solutions, is likely to drive revenues from this segment moving forward.
It has been working with the cable ecosystem to enable 100 and 200 gig per lane AECs and is likely to begin significant product ramps. The company also noted that PCIe Gen6 retimers are witnessing “broad traction.” Management noted that it is currently working with more than 30 customers and ecosystem partners, including cable manufacturers, hyperscalers, system OEMs and ODMs. After having designed more than 10 sockets, MRVL expects PCIe Gen6 retimers to enter production in the second half of next year, with full revenue contribution anticipated in fiscal 2028. AEC and retimer revenues in aggregate is anticipated to more than double in the next year.
Founded in 2017, Astera Labs ALAB designs advanced interconnect products, including PCIe, CXL and Ethernet semiconductor-based connectivity solutions, which are widely used by hyperscalers and the data center ecosystem. With Aries 6, the company has a first-mover advantage as these products are the industry’s first and only PCIe 6 retimers shipping in high volume.
ALAB expects further business opportunities for its Aries PCIe 6 smart retimer business as AI racks built around custom AI accelerators and new merchant accelerators begin to adopt PCIe 6. The company reported that PCIe Gen 6 solutions accounted for more than 20% of total third-quarter revenues.
CRDO Price Performance, Valuation and Estimates
Shares of CRDO have lost 14.5% in the past month compared with the Electronics-Semiconductors industry’s decline of 0.1%.
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Regarding the forward 12-month price/sales ratio, CRDO is trading at 14.08, higher than the sector’s multiple of 8.28.
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The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has been revised upward significantly over the past 60 days.
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CRDO currently sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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