11 AI News Updates on Wall Street’s Radar

5. Credo Technology Group Holding Ltd. (NASDAQ:CRDO)

Number of Hedge Fund Holders: 43

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is a technology company that provides various high-speed connectivity solutions for optical and electrical Ethernet applications. Consequently, it plays an important role in the artificial intelligence infrastructure ecosystem with its low-latency connectivity solutions. The company unveiled a new Lark family of optical Digital Signal Processors on April 1, targeting opportunities in powering next-generation AI applications and hyperscale networks.

Featuring high-performance reliability and low power consumption capabilities, the new optical Digital Signal Processors (DSPs) strengthen Credo Technology Group Holding Ltd.’s (NASDAQ:CRDO) prospects of playing a key role in reducing interconnect power consumption in data centers amid the AI boom. The power efficiency of the 800G optical transceivers, as Lark 850 consumes less than 10W, should address the power ceiling for AI-tailored data centers. The new Lark DSP family should also unlock new growth opportunities for Credo Technology in the rapidly expanding AI infrastructure market as data centers face critical power constraints.

“As AI drives datacenter growth to unprecedented levels, power becomes increasingly important. Every watt dedicated to optical interconnect is a watt that can’t be used for GPU power,” said Cignal AI Lead Analyst, Dr. Scott Wilkinson. “With over nine million 800GbE modules deployed in 2024, and more than 14 million forecasted for deployment in 20251, Credo’s Lark DSP can play a pivotal role by reducing a major source of interconnect power consumption inside the datacenter.”