Credo Technology

Active electrical cable (AEC) pure-play — Credo's SerDes-and-cable platform replaces optical transceivers inside the rack at short reach with a power-efficient copper alternative, and the hyperscalers (Microsoft and Amazon named) have made AECs a standard part of the GPU-rack build. Q3 FY26 printed revenue +201% YoY — that's the kind of growth that earns a Tier A but Credo holds at Tier B for one reason: customer concentration is severe (MSFT + AMZN ~70%+ of revenue) and the June 1 Q4 FY26 print is the test of whether the AEC adoption broadens beyond the first two adopters. Credo sits at Layer 4 — specifically the inside-the-rack interconnect layer that connects every GPU to every NIC to every switch within a single rack. Active electrical cables are the technology bet: copper cables with embedded SerDes / DSP chips that re-time and equalise the signal, achieving 100G/200G/400G per lane at meaningfully lower power than optical transceivers for sub-7-meter reaches. The economics: AECs cost less than optics, consume less power than optics, and are field-replaceable in a way that copper-passive cables (DAC) are not. The hyperscaler adoption pattern is the validation — Microsoft was th…