Core Insights - Credo, a semiconductor company, is gaining attention in the AI infrastructure market, particularly due to its active electrical cables (AECs) which are essential for connecting high-performance servers in data centers [3][4][10] Company Overview - Credo's shares have more than doubled in 2024, reaching $143.61, with a market capitalization close to $25 billion, up from approximately $1.4 billion at its IPO in 2022 [4] - The company reported fiscal 2025 revenue of $436.8 million, more than doubling from the previous year, and achieved a net income of $52.2 million [8] Market Position and Growth - Analysts predict that the AEC market, which Credo pioneered, will reach $4 billion by 2028, driven by investments from major hyperscalers like Amazon and Microsoft [5][6] - Credo is expected to see annualized revenue growth of at least 50% through 2028, with projections for sales to exceed $1 billion in fiscal 2026 [6][9] Product Offering - Credo's AECs are priced between $300 and $500 each and are designed to be more reliable than traditional fiber optic cables, reducing the risk of data center downtime [9][14] - The company estimates it holds 88% of the AEC market, with increasing demand as modern servers require multiple connections [12] Industry Dynamics - The AI boom is significantly driving demand for data center infrastructure, with projections of $1 trillion in spending on AI data centers by 2030 [10] - Credo is positioned to benefit from the growing trend of hyperscalers building denser AI clusters, which require more connections per server [15][18] Future Opportunities - Credo is expanding its product lines to include intra-rack connections and has announced new transceivers and software for optical cables [21] - The company is experiencing strong demand for its products, with expectations of continued growth as AI networking needs evolve [22]