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Credo Technology: A Often Overlooked but Essential Link in the AI Revolution

October 20, 2025

While investors mainly focus on Nvidia, AMD, or OpenAI as the leading faces of artificial intelligence, behind this revolution operates a company without which no supercomputer or data center could function – Credo Technology. This firm from California’s Silicon Valley has gradually become one of the most important links in the AI infrastructure chain and, within two years, transformed from an unknown player into a stock market darling, rising toward its all-time high by more than 800%.*

 Credo Technology: A Often Overlooked but Essential Link in the AI Revolution

Exponential Expansion

Credo, the giant controlling an 88% market share in the segment of Active Electrical Cables (AEC) – the technology enabling ultra-fast communication between AI servers – was founded in 2008 by former engineers from Marvell. Today, under the leadership of Bill Brennan, the company’s CEO, it boasts a market capitalization of approximately USD 25 billion. For comparison, after going public in 2022, this figure was USD 1.4 billion. This represents a fundamental difference – clearly in a positive light – that gained momentum in 2024, when Credo’s stock price increased by 270%. Currently, in 2025, the company has rewarded shareholders with an additional 100%+ growth.* The global bank JPMorgan also sees an investment opportunity in Credo, having recently upgraded its rating to Buy, with a target price of USD 165 (at the time of writing, the stock traded around USD 140). [1]

Credo

Credo Technology Stock Price Performance Over the Past Five Years*

Cables Powering Artificial Intelligence

At first glance, it may seem that Credo manufactures “just” ordinary cables, but in reality, these are high-performance data arteries of artificial intelligence. AECs are special copper cables with embedded chips at both ends, enabling reliable connections between processors and graphics processing units (GPUs). The estimated price per cable is USD 300–500, and a single AI server may require up to nine of them. As a result, given the growing demand for data center construction from giants such as Amazon, Microsoft, Meta, and others, these products can be considered irreplaceable. Additional buzz was sparked by Elon Musk’s photo from his Colossus 2 data center, filled with Credo’s iconic purple cables.

Financial Results

Credo recently published its results for the fiscal year 2025, which clearly highlighted its strong fundamentals. Revenue reached USD 436.8 million, more than double compared to the previous year, while net profit rose to USD 52.2 million, after recording a loss of USD 28.4 million the year before. For fiscal year 2026, analysts from the London Stock Exchange Group expect revenue to approach USD 1 billion. [2]

A Technology Stock of the New Era

In conclusion, based on its intrinsic value, Credo Technology represents a promising investment opportunity for technology-oriented investors seeking to diversify their portfolios. [3] The company does not supply standard, easily replaceable cables but rather sophisticated components essential for the stable operation of the entire AI infrastructure.

Disclaimer! This marketing material is not and must not be understood as investment advice. Past performance is not a guarantee of future returns. Investing in foreign currencies may affect returns due to exchange rate fluctuations. All securities transactions can lead to both profits and losses. Forward-looking statements are based on assumptions and current expectations, which may be inaccurate or influenced by changes in the current economic environment. Such statements do not guarantee future performance. InvestingFox is a trademark of CAPITAL MARKETS, o.c.p., a.s., regulated by the National Bank of Slovakia.

[1, 2, 3] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate or influenced by changes in the current economic environment. Such statements do not guarantee future performance. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that cannot be predicted, and actual developments and results may differ significantly from those expressed or implied in any forward-looking statements.

*Past performance data are not a guarantee of future returns.

Sources

https://investors.credosemi.com/news-events/news/news-details/2025/Credo-Technology-Group-Holding-Ltd-Reports-Fourth-Quarter-and-Fiscal-Year-2025-Financial-Results/default.aspx
https://www.cnbc.com/2025/10/17/500-purple-cables-put-credo-in-middle-of-the-ai-boom.html
https://www.cnbc.com/2025/10/15/a-guide-to-1-trillion-worth-of-ai-deals-between-openai-nvidia.html
https://about.fb.com/news/2025/10/open-hardware-future-data-center-infrastructure/

InvestingFox is a trademark of CAPITAL MARKETS, o.c.p., a.s., with its registered office at Slávičie údolie 106, Bratislava – Staré Mesto district, 811 02. The company is registered in the Commercial Register of the Municipal Court Bratislava III, Section: Sa, File No.: 4295/B, ID No.: 36 853 054, VAT No.: 2022505419.

CAPITAL MARKETS, o.c.p., a.s. is a securities dealer pursuant to Section 55(1) of Act No. 566/2001 Coll. on Securities and Investment Services and on Amendments to Certain Acts, as amended (hereinafter the “Securities Act”). On October 30, 2007, CAPITAL MARKETS, o.c.p., a.s. was granted, by Decision No. OPK-2297/2007 of the National Bank of Slovakia -PLP, a license to provide investment services pursuant to Section 54(2) in conjunction with Sections 59(2) and (3) of the Securities Act, which was extended in accordance with the provisions of the Securities Act by Decision No. OPK-1830/2008-PLP dated April 21, 2008, Decision No. OPK-11601-1/2008 dated January 28, 2009, Decision No. ODT-5059-3/2012 dated July 23, 2012, and Decision No. ODT-9332/2014-1 dated October 21, 2014.

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