Credo Technology Group Holding Ltd (CRDO): A Bull Case Theory
We came across a bullish thesis on Credo Technology Group Holding Ltd on Procure.FYI Substack’s Substack by Howe Wang. In this article, we will summarize the bulls’ thesis on CRDO. Credo Technology Group Holding Ltd's share was trading at $123.06 as of August 29th. CRDO’s trailing and forward P/E were 424.33 and 84.75 respectively according to Yahoo Finance.
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Credo Technology Group’s journey from a bootstrapped startup in 2008 to a $21 billion market leader today is a story of timing, conviction, and geopolitical circumstance. Founded by Marvell veterans Job Lam, Lawrence Chiou, and Runfu Chen, the company survived its early years through consulting revenues, channeling funds into R&D that produced proprietary low-power Serializer/Deserializer (SerDes) technology. In 2015, Lip-Bu Tan, then a prominent venture capitalist, recognized that bandwidth—not compute—would be the bottleneck in data’s exponential growth. His $8 million Series A investment, followed by strategic guidance, propelled Credo from its humble roots toward becoming a critical enabler of modern AI infrastructure.
Credo’s SerDes breakthroughs laid the foundation for Linear Pluggable Optics (LPO) and its variant LRO, technologies that slash power consumption, costs, and latency in AI data centers by offloading signal processing to host systems rather than costly DSP chips. This approach, relying on mature chip nodes like 28nm rather than restricted advanced silicon, inadvertently positioned Credo to thrive amid intensifying U.S.-China export controls. With over 85% of revenue sourced overseas—74% from Greater China—Credo became both a beneficiary and a risk-bearer of geopolitical tensions, as Chinese firms embraced its solutions to circumvent restrictions while U.S. hyperscalers like Amazon and Microsoft remained cornerstone clients.
Its specialized focus and customer-centric engineering model allowed it to outpace giants like Broadcom and Marvell in the LPO race, establishing high barriers to entry and capturing dominant market share in AI interconnects. For Tan, Credo represents the payoff of a contrarian bet on connectivity, a wager that turned bandwidth into one of the most valuable commodities of the AI era.
Previously we covered a bullish thesis on Credo Technology Group Holding Ltd (CRDO) by Deep Value Returns in May 2025, which highlighted AI connectivity tailwinds, strong earnings momentum, and the benefits of a patient long-term strategy. The stock has appreciated about 93% since our coverage as growth outpaced valuation concerns. Howe Wang shares a similar view but emphasizes Credo’s SerDes roots and geopolitical positioning.
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