Credo Technology to acquire Hyperlume to boost high-speed connectivity growth

[Medical sales representative greeting a doctor with a handshake at the hospital]

* Credo Technology (NASDAQ:CRDO [https://seekingalpha.com/symbol/CRDO]) said late on Monday that it will acquire privately held Hyperlume to boost its growth in the high-speed connectivity space, which has become increasingly important amid the artificial intelligence spending boom.
* Credo shares rose 0.5% in premarket trading, building on their year-to-date gains of 105%.
* Hyperlume specializes in using ultra-fast microLEDs and ultra-low power circuitry to overcome the energy and bandwidth bottlenecks inherent in traditional interconnects., Credo said. Companies that have scaled up their AI networks are increasingly looking for ways to cut bottlenecks and reduce energy usage, as electricity costs surge, due in part to AI.
* “The acquisition of Hyperlume extends our innovative system-level connectivity solutions that spans diverse physical mediums, distances, and protocols to deliver optimized solutions to meet each customer’s needs,” said Bill Brennan, president and CEO of Credo in a statement [https://seekingalpha.com/pr/20248042-credo-to-acquire-hyperlume-inc]. “MicroLED technology aligns with our mission to innovate and advance high-speed connectivity by enabling faster, more reliable, more energy-efficient, and scalable solutions for the AI era. We welcome the Hyperlume team to Credo and look forward to creating a new class of connectivity solutions together.”
* Terms of the deal were not disclosed.

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