SAN JOSE, Calif. - Credo Technology Group Holding Ltd (NASDAQ:CRDO), a company specializing in high-speed connectivity solutions, has launched a new series of HiWire Active Electrical Cables (AECs) designed to enhance 400G AI/ML Backend Network (LON:NETW) connections to Top of Rack (TOR) switches.
The newly introduced HiWire AECs are engineered to support the increasing demand for higher data rates and bandwidth in data centers. These cables feature in-cable speed shifting, which allows for compatibility with existing 12.8T TOR switches and facilitates configurations for more advanced 25 and 51Tb TORs.
Credo's Vice President of Product, Don Barnetson, highlighted the proliferation of 400G AI/ML backend networks and the challenge it presents for customers whose networking plans have not kept pace with the shift to 112G/lane connectivity. The HiWire AECs are designed to address this issue, enabling the use of legacy switches while providing a pathway to next-generation TOR configurations.
The lineup includes various configurations such as 400G OSFP-RHS to 400G QSFP-DD for 12.8T TORs and multiple 800G options for 25.6Tb and 51.2Tb TORs, ensuring a wide range of data infrastructure needs are met.
Samples of the HiWire AEC family are currently available, with full production expected to commence in Q3/2024. Credo will showcase these innovative cable solutions at the Optical Fiber Conference (OFC) in San Diego, CA, from March 26 to March 28, 2024.
This announcement is based on a press release statement from Credo Technology Group Holding Ltd.
InvestingPro Insights
Credo Technology Group Holding Ltd (NASDAQ:CRDO) has recently made waves in the tech industry with its launch of the innovative HiWire Active Electrical Cables (AECs), set to enhance 400G AI/ML Backend Network connections. The company's financial health and market performance offer additional insights into its potential growth trajectory.
InvestingPro Data indicates a market capitalization of $3.24 billion, signifying a robust presence in the market. Despite a challenging revenue growth rate, with a decrease of 13.37% over the last twelve months as of Q3 2024, Credo's gross profit margin remains high at 59.69%, showcasing its ability to maintain profitability in its core operations.
An InvestingPro Tip highlights that Credo holds more cash than debt on its balance sheet, providing financial stability and the potential for future investments in product development and market expansion. Additionally, analysts predict a return to profitability for the company this year, aligning with the positive reception of their latest product offerings.
Investors may also take note of the stock's significant 1 Year Price Total Return of 142.96%, reflecting investor confidence and market optimism surrounding Credo's strategic direction and product innovation. This performance is further underscored by a large price uptick over the last six months, with a 31.2% return, indicating strong market momentum.
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