Credo Technology Group CRDO recently introduced its innovative Lark optical Digital Signal Processor (DSP) family, engineered to transform 800G optical transceivers. The Lark portfolio has two distinct optical DSP products.

The Lark 800 is a high-performance, low-power DSP optimized for fully retimed 800G transceivers, designed to meet the stringent power and cooling requirements of hyperscale AI data centers. The Lark 850 is an ultra-low-power 800G Linear Receive Optics (LRO) DSP, consuming under 10W, making it an ideal solution for AI-driven data environments where power efficiency is exceptional.

Following the new release, CRDO’s shares went up 3.8% in trading and closed at $41.72 on April 1, 2025.

Components of CRDO's Lark Optical DSPs

Credo’s fifth-generation DSP architecture powers the Lark lineup, enabling 800G connectivity while efficiently overcoming optical signal impairments. This ensures effortless data transmission in the most demanding hyperscale environments. The Lark 800 incorporates advanced Ethernet link health monitoring, ensuring stable network operation and reducing the risk of data transmission failures.

A key capability of the Lark DSP family is its energy efficiency. The Lark 800 features programmable power-saving modes, allowing operators to optimize power use according to workload intensity. It is also designed to support both single-mode and multi-mode architectures, making it adaptable to various optical transceiver applications.

Apart from these, another advantage of Lark is its support for both fully retimed transceivers and LRO. This enables data center operators and network architects to choose the most optimal architecture based on their unique performance and power efficiency requirements.

As hyperscale data centers continue to evolve, network operators require high-speed, low-latency connectivity while maintaining sustainable power efficiency. The launch of the Lark DSP family highlights Credo’s commitment to delivering next-generation optical solutions that empower AI, ML and hyperscale cloud applications.

Credo Technology Group Holding Ltd. Price and Consensus

Credo Technology Group Holding Ltd. price-consensus-chart | Credo Technology Group Holding Ltd. Quote

Credo’s robust client base is a tailwind. Its solutions are used by all the major hyperscalers, and include more than 20 blue chip clients, including over 10 original equipment manufacturers and original design manufacturers, more than 10 optical module manufacturers and other leading enterprises.

The company expects third-quarter fiscal 2025 revenues between $115 million and $125 million, which indicates growth of 67% sequentially at mid-point. It estimates double-digit sequential revenue growth from third-quarter fiscal 2025 to fourth-quarter fiscal 2025. For fiscal 2025, revenues are expected to grow more than 100%.

Simultaneously, management expects operating expenses to grow at less than half the rate of revenues, thereby driving margin expansion. Over the long term, Credo expects a non-GAAP gross margin between 63% and 65% or a non-GAAP operating margin of 30-35%.

CRDO’s Zacks Rank & Stock Price Performance

CRDO currently sports a Zacks Rank #1 (Strong Buy). Shares of the company have rallied 85.9% in the past year against the Zacks Electronics-Semiconductors industry's decline of 2.2%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and CommScope Holding COMM. IDCC, COMM & UI presently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. It has a long-term growth expectation of 19.37%.

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