Credo Tech

📢 𝗝𝗨𝗦𝗧 𝗜𝗡: $Credo Tech(CRDO.US) Credo Launches 1.6T ZeroFlap Optical Transceivers for AI Networks

👉 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:

➤ 𝗖𝗿𝗲𝗱𝗼 launches 𝟮𝟮𝟰𝗚-based 𝟭.𝟲𝗧 ZeroFlap optical transceivers for AI networks.

➤ Platform combines 𝗭𝗲𝗿𝗼𝗙𝗹𝗮𝗽 𝗗𝗦𝗣, 𝗞𝗳𝗶𝗿𝟮𝟬𝟬 silicon photonics, and PILOT diagnostics.

➤ 𝗣𝗜𝗟𝗢𝗧 continuously monitors optical-link health and streams real-time telemetry.

➤ Technology detects fiber issues and 𝗹𝗶𝗻𝗸 𝗳𝗹𝗮𝗽𝘀 before AI workloads suffer.

➤ ZeroFlap supports 𝟮𝘅𝗗𝗥𝟰, 𝟮𝘅𝗙𝗥𝟰, and 𝗗𝗥𝟴 AI interconnect architectures.

➤ Platform targets faster 𝘁𝗶𝗺𝗲 𝘁𝗼 𝗳𝗶𝗿𝘀𝘁 𝘁𝗼𝗸𝗲𝗻 and improved cluster uptime.

➤ Telemetry supports 𝗦𝗢𝗡𝗶𝗖 and other leading switch operating systems.

➤ Remote telemetry and firmware updates simplify large-scale AI network maintenance.

➤ Cignal AI forecasts over 𝟭𝟭 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 1.6T transceivers shipping in 2026.

➤ Cignal AI expects 2027 shipments to 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗱𝗼𝘂𝗯𝗹𝗲 2026 levels.

👉 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀:

➤ 𝗖𝗿𝗲𝗱𝗼 expands its opportunity in rapidly scaling AI data-center connectivity.

➤ 𝟭.𝟲𝗧 networking is emerging as critical infrastructure for larger AI clusters.

➤ Proactive diagnostics could reduce 𝗱𝗼𝘄𝗻𝘁𝗶𝗺𝗲 and accelerate AI cluster deployment.

➤ Forecast shipment growth signals potentially significant demand for 𝟭.𝟲𝗧 optical connectivity.

👉 𝗘𝘅𝗽𝗲𝗿𝘁 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀:

𝗔𝗺𝗲𝗲𝘁 𝗦𝘂𝗿𝗶, VP of Product at Credo:

“Getting an AI cluster online—and keeping it running—starts with a stable network,” said Ameet Suri, VP of Product at Credo. “ZeroFlap Optics constantly monitor every link with built-in telemetry that detects warning signs to notify operators and avoid costly link flaps. That means customers get their clusters running faster and keep them running longer.”

𝗦𝗰𝗼𝘁𝘁 𝗪𝗶𝗹𝗸𝗶𝗻𝘀𝗼𝗻, Lead Analyst, Optical Components at Cignal AI:

“The 1.6T optical transceiver ramp has begun, with over 11 million forecast to ship in 2026 and more than double that number shipping in 2027," said Scott Wilkinson, Lead Analyst, Optical Components at Cignal AI. “Credo's ZeroFlap transceivers address two critical priorities in scaling 1.6T AI infrastructure deployments reliably: optical link resilience and operational visibility. By harnessing real-time telemetry in the transceiver, Credo is enabling networks to predict and prevent failures before they impact services.”

Evercore ISI: AI networking to be the highest growth segment within AI data center semis the next 5 years.

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CVP of Financial Strategy and Investor Relations at AMD, Matt Ramsay, says copper will continue to be used for quite some time:

"I do not think you will see it be a point-in-time thing where everybody just decides as an industry, okay, no more copper, now we are going to go optics."

"You should think about copper and optics living side by side for a number of generations."

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Several important names reported this week and last week, including Nvidia, Dell, HPE, Broadcom, Ciena, and Credo.

Almost all of them mentioned how demand exceeds available supply, hindering their growth for the following quarters.

Looking through their earnings call, almost all of the compute/server companies mentioned memory and substrate as a significant supply constraint.

Broadcom specifically mentioned "demand for lasers, whether it's EML lasers, CW lasers, is far surpassing supply out there in the industry."

Moving over to optical, Ciena reported LTAs through 2029 for certain optical components. Same signal from Credo.

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