infrastructureScore 40/100Watch
1.6 Tbps transition delayed; industry-wide 200 gig per lane ramp expected to be light in FY2027, with limited revenue contribution; Credo expects significant inflection in FY2028
Bill Brennan· Credo Technology· AI· 2026-06-01· about Credo Technology (CRDO)
“Fiscal 2027 will have relatively light revenue as it relates to 200 gig per lane. And that is just a function of the fact that the industry has not seemed to get there quite yet... we are absolutely confirmed from the standpoint of being ready for production on all of our copper as well as optical system level products.”
Why it matters
Despite being ready, industry-wide delay in 200G deployment shifts upside to FY2028, reducing near-term ASP uplift expectations for connectivity vendors.
Investment implication
Investors should lower FY2027 margin expectations for companies expecting 200G volume. Delayed 1.6T transition benefits suppliers of 100G components and creates opportunity for companies optimizing 800G architectures.