Is Credo Technology Group (CRDO) Shifting Toward an IP Monetization Strategy With Its Latest Licensing Deal?

• In November 2025, The Siemon Company announced it had entered into a license agreement with Credo Technology Group Holding for patents relating to Credo’s active electrical cable technology, with the contract terms kept confidential.
• This agreement highlights Credo's ongoing push to monetize its intellectual property portfolio, potentially opening new avenues for recurring revenue streams and business partnerships.
• We'll explore how the new licensing arrangement supports Credo's focus on intellectual property monetization within its broader investment narrative.

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Credo Technology Group Holding Investment Narrative Recap

For investors considering Credo Technology Group, the core thesis centers on the company’s role in supplying high-performance connectivity solutions amid AI, cloud, and data center expansion. While the recent license agreement with The Siemon Company underscores progress in monetizing intellectual property, it is not expected to materially shift the main near-term catalyst, hyperscaler infrastructure build-outs, or alleviate the biggest risk, which remains reliance on a handful of large cloud customers for a majority of revenue.

Among recent corporate updates, the settlement and licensing agreements Credo completed in August 2023 with Amphenol and Volex plc are particularly relevant, as they also addressed intellectual property for active electrical cable technology. Both moves reinforce Credo’s proactive approach in leveraging its patent portfolio, though the short-term outlook still largely depends on customer diversification and hyperscaler demand.

However, investors should also be aware that, in contrast, the ongoing concentration of sales among a few hyperscalers could...

Read the full narrative on Credo Technology Group Holding (it's free!)

Credo Technology Group Holding's narrative projects $1.0 billion in revenue and $314.5 million in earnings by 2028. This requires 33.8% yearly revenue growth and a $262.3 million earnings increase from $52.2 million today.

Uncover how Credo Technology Group Holding's forecasts yield a $162.93 fair value, a 8% downside to its current price.

Exploring Other Perspectives

The Simply Wall St Community provided 26 independent fair value estimates for Credo, ranging from US$18.90 to US$190.06 per share. While these opinions span a wide spectrum, continued heavy reliance on several major cloud customers remains a central theme with significant implications for long-term revenue growth and stability; explore the range of perspectives to inform your view.

Explore 26 other fair value estimates on Credo Technology Group Holding - why the stock might be worth less than half the current price!

Build Your Own Credo Technology Group Holding Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Credo Technology Group Holding research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Credo Technology Group Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Credo Technology Group Holding's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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