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SAN JOSE, Calif. - Credo Technology Group Holding Ltd (NASDAQ:CRDO) and The Siemon Company have reached a license agreement covering Credo’s active electrical cable technology patents, according to a press release issued Monday. Credo, currently valued at $23.09 billion, has seen its stock surge 191% over the past year.
The agreement’s financial terms remain confidential, with executives from both companies stating only that they were "pleased to have reached a license agreement related to Credo’s active electrical cable patents."
Credo, which specializes in high-speed connectivity solutions focused on reliability and energy efficiency, develops products for optical and electrical Ethernet applications in the 100G, 200G, 400G, 800G, and emerging 1.6T port markets. The company boasts impressive gross profit margins of nearly 66% and has achieved revenue growth of 175.8% over the last twelve months.
The company’s product portfolio includes integrated circuits for optical and line card markets, active electrical cables, and serializer/deserializer chiplets. Credo also offers intellectual property licensing, primarily for serializer/deserializer technology. According to InvestingPro, Credo is currently trading at a premium valuation with a P/E ratio of 209, though analysts expect continued growth with earnings forecasts of $2.30 per share for fiscal 2026.
The Siemon Company, founded in 1903, manufactures connectivity solutions for data centers and smart buildings, with operations in over 100 countries.
This agreement represents a formalization of intellectual property rights between the two companies in the high-speed connectivity sector, based on the press release statement.
In other recent news, Credo Technology Group Holding Ltd reported a third-quarter revenue miss, leading Stifel to lower its price target for the company to $9.00 from $10.00, though it maintained a Buy rating. The revenue shortfall was attributed to factors such as peso devaluation and unfavorable sports outcomes. In contrast, Mizuho raised its price target for Credo to $165.00, citing strong growth prospects driven by major customers like Amazon Web Services and Microsoft. Additionally, Credo’s leadership saw changes with the appointment of Brian Kelleher, former NVIDIA engineering SVP, to its Board of Directors. This comes as Lip-Bu Tan resigned from the board. Furthermore, Credo’s CEO, Bill Brennan, was appointed to Axiado’s Board of Directors, adding to his extensive industry experience. During Credo’s 2025 Annual General Meeting, shareholders elected William J. Brennan, Yat Tung Lam, and Chi Fung Cheng as Class I directors. These developments reflect ongoing strategic and leadership shifts within the company.
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