Credo's Dependence on AWS Is Shrinking—Here's Why It Could Be a Big Win
Credo Technology is shifting its focus away from Amazon Web Services, which currently represents 86% of its revenue, in search of growth from new hyperscaler clients. The company has already seen an increase in customers contributing over 5% of revenue and expects that trend to continue, potentially enhancing its gross margins. Despite facing growing competition from industry giants like Marvell and Broadcom, Credo's diverse product offerings may help it sustain its profitability.
- This strategic pivot reflects a broader trend in the tech industry where companies are diversifying their client bases to mitigate risks associated with reliance on a single provider.
- How will Credo’s evolving business strategy influence its long-term viability in the rapidly changing technology landscape?