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Ryan Leung 梁興盛, CFA
@RYANHINGSHING
Buyside equity analyst. Tech/Fin. Investing in tech/semi supply chain. Not investment advice. DM open.
Joined March 2023
800 Following    16.4K Followers
I like $MXL , but we can ignore $MXL entering the 1.6T AEC market, and it won't affect $CRDO . What we need is proven stability, stability and stability.
$CRDO’s premarket selloff may partly be driven by $MXL’s comments last night about entering the 1.6T AEC market. Investors may be worried about the impact of new competition. But here’s what’s interesting: MXL’s own CEO estimated that Credo controls roughly 93–99% of the AEC cable market. Credo has a mature, proven end-to-end solution, from silicon and cable design to qualification and delivery. MXL, meanwhile, plans to sell chips rather than complete cables. And competition isn’t new. $MRVL has been developing AEC silicon for some time, yet it hasn’t visibly dented Credo’s market dominance. Of course, more competitors will eventually enter this market. But I think investors may be overestimating the near-term threat from MXL. There’s a big difference between developing an AEC chip and taking meaningful share from Credo.
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