Core Viewpoint - The data center market is experiencing rapid growth driven by digital transformation and the increasing demand for AI and ML technologies, benefiting companies like Credo Technology Group and Marvell Technology [2][3]. Group 1: Company Overview - Credo Technology Group specializes in high-speed connectivity solutions, particularly in Ethernet and Active Electrical Cables (AECs), which are gaining traction in data centers [4][5]. - Marvell Technology is a major player in the data center market, providing essential solutions such as PAM chips and digital signal processors that support AI infrastructure [9][10]. Group 2: Market Trends and Growth - The global data center market is projected to grow at a CAGR of 11.2% from 2025 to 2030, indicating strong demand for innovative data processing and storage solutions [2]. - Credo's AEC products have seen triple-digit sequential growth, highlighting their increasing adoption in data centers [4]. - Marvell's data center revenues reached $1.37 billion, marking a 78% year-over-year increase, with the segment accounting for 75% of total revenues [10]. Group 3: Product Innovations - Credo is expanding its product portfolio to include PCIe solutions, which are expected to significantly increase its total addressable market [5]. - Marvell's advanced optical interconnects and Co-Packaged Optics technology are enhancing data center efficiency and scalability [12]. Group 4: Financial Performance - For the third quarter of fiscal 2025, Credo reported a 154% year-over-year revenue growth, driven by demand from its largest hyperscale customer [8]. - Marvell's Electro-Optics products and Teralynx Ethernet switches have shown double-digit sequential growth, indicating strong market demand [11]. Group 5: Valuation and Estimates - CRDO is trading at a forward Price/Sales ratio of 10.30X, while MRVL is at 5.39X, suggesting a higher valuation for Credo [15]. - Analysts have significantly revised earnings estimates upwards for Credo, while Marvell's revisions have been more subdued [18][20]. Group 6: Investment Outlook - Both companies are well-positioned to benefit from the growing data center market, with Credo currently holding a Zacks Rank 1 (Strong Buy) and Marvell a Zacks Rank 2 (Buy) [21].

Industry Overview - The global data center market is projected to grow from USD 269.79 billion in 2025 to USD 584.86 billion by 2032, reflecting a CAGR of 11.7% driven by increasing data storage and processing needs [2] - Key trends in the data center industry include hyperscale data centers, liquid cooling, edge computing, and a focus on sustainability and energy efficiency [1] Semiconductor Industry Impact - The semiconductor industry is expected to benefit significantly from the increasing data center market, particularly due to the demand for high-performance chips like GPUs and High Bandwidth Memory (HBM) [4][5] - Global semiconductor sales reached $56.5 billion in January 2025, marking a 17.9% increase from $47.9 billion in January 2024, with projections for sales to reach $697 billion in 2025 [7] Company-Specific Insights Credo Technology (CRDO) - Credo Technology is experiencing strong market growth in Ethernet and Active Electrical Cables (AECs) for data centers, with AEC products showing triple-digit sequential growth in Q3 of fiscal 2025 [9] - The Zacks Consensus Estimate for Credo Technology's 2025 earnings is pegged at 63 cents per share, revised upward by 26% over the past 30 days, with a 100.2% increase in stock price over the trailing 12 months [11] Broadcom (AVGO) - Broadcom is capitalizing on investments in AI data centers, launching high-speed networking chips like Sian3 and Sian2M, which enhance power efficiency and connectivity [12][13] - The consensus mark for Broadcom's 2025 earnings is $6.56 per share, which has increased by 3.9% over the past 30 days, with a stock price increase of 29.8% in the trailing 12 months [14] Marvell Technology (MRVL) - Marvell Technology is focusing on high-speed solutions for data centers, including PAM chips and silicon photonics, to meet the growing demand for AI-driven infrastructure [17][18] - The consensus mark for Marvell's fiscal 2026 earnings is $2.76 per share, which has decreased by 1.8% over the past 30 days, with an 8.5% decline in stock price over the trailing 12 months [20]