Credo Technology and Volex settle patent dispute over cable tech

SAN JOSE, Calif. - Credo Technology Group Holding Ltd (NASDAQ:CRDO), a high-performance technology company currently trading above its InvestingPro Fair Value with impressive revenue growth of 126% over the last twelve months, has reached a license and settlement agreement with Volex plc (AIM:VLX) regarding patents covering Credo’s active electrical cable technology, according to a statement released Tuesday.

The agreement will result in the dismissal of the lawsuit between the companies, ending their patent dispute. Executives from both companies issued a joint statement saying they were "pleased to have reached an amicable resolution." The specific terms of the agreement remain confidential.

Credo, which specializes in high-speed connectivity solutions focused on improved reliability and energy efficiency, develops products for optical and electrical Ethernet applications, including emerging high-bandwidth markets ranging from 100G to 1.6T port technologies.

The company’s product portfolio includes integrated circuits for optical and line card markets, active electrical cables, and serializer/deserializer (SerDes) chiplets, along with intellectual property licensing focused primarily on SerDes technology.

Volex, headquartered in the UK, operates as a manufacturer of power and data connectivity solutions with operations across 27 manufacturing facilities globally. The company serves several markets including electric vehicles, consumer electricals, medical equipment, and industrial technology.

The settlement allows both companies to move forward following the resolution of their intellectual property disagreement, based on the press release statement.

In other recent news, Credo Technology Group Holding Ltd. has seen several analyst firms raise their price targets for the company, indicating positive sentiment about its future performance. Mizuho increased its price target to $135 from $112, maintaining an Outperform rating, and highlighted a higher valuation multiple based on its fiscal 2027 estimates. Stifel also raised its target to $115 from $80, reflecting a significant upward revision and continued confidence with a Buy rating. Another adjustment from Mizuho set the price target at $98, citing stable revenue and earnings per share estimates for the July quarter at $190 million and $0.37, respectively.

TD Cowen raised its price target twice, first to $85 from $50 and later to $95 from $85, both times maintaining a Buy rating. The firm noted Credo as its "Best Smidcap Idea for 2025," emphasizing growth potential in high-speed connectivity for data center AI applications. Analysts from TD Cowen also pointed out Credo’s revised fiscal year 2026 growth target at 85%, up from a previous 55%, due to improved customer diversification. Growth in Application Engineered Chip sales and momentum in the optical Digital Signal Processor franchise were also highlighted as key drivers. These developments suggest a strong outlook for Credo Technology among analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.