Core Insights - Credo Technology Group Holding Ltd. (CRDO) has acquired Hyperlume, Inc., enhancing its capabilities in microLED technology for chip-to-chip communication, which is crucial for meeting the demands of AI, cloud, and hyperscale data centers [1][10] - The acquisition is expected to significantly boost CRDO's next-generation connectivity solutions, aligning with its mission to provide secure and energy-efficient connectivity across various protocols and distances [2][3] Company Developments - Hyperlume's microLED technology offers energy-efficient, high-speed, and low-latency data transmission, addressing the limitations of traditional electronic interconnects [2] - CRDO anticipates that revenues from its optical business will double by fiscal 2026, with the acquisition expected to further enhance this growth [4][10] - The company recently introduced its 224G PAM4 SerDes Intellectual Property, fabricated on TSMC's N3 technology, indicating ongoing innovation in its product offerings [4] Industry Context - Marvell Technology (MRVL) has not made recent acquisitions but has previously acquired companies to enhance its technology portfolio, while also divesting non-core assets to focus on share repurchases and technology investments [5] - Broadcom Corporation (AVGO) continues to leverage acquisitions to penetrate new markets, with significant orders secured for AI racks based on its XPUs, projecting a 66% year-over-year increase in AI semiconductor revenues for fiscal 2025 [7][8] Market Performance - CRDO's shares have increased by 11.7% over the past month, slightly underperforming the Electronics-Semiconductors industry's growth of 12.9% [9] - The forward 12-month Price/Sales ratio for CRDO stands at 23.92, significantly higher than the sector's average of 9.27, indicating a premium valuation [12]