Credo Technology Group shares fell as much as 10%. The stock hit a six-month low after competitor MaxLinear announced plans to enter the active electrical cable (AEC) market.
On its earnings call, MaxLinear’s CEO said Credo currently dominates the sector, with an estimated 93% to 99% market share.
MaxLinear aims to capture 20% to 30% of the market within the next couple of years. Its target is the 1.6-terabit AEC market, where it plans to supply silicon components to cable manufacturers.
The move challenges Credo’s leadership in a high-growth area for data centers. The stock’s decline was also influenced by reports of insider selling and research suggesting a potentially slower rollout of next-generation 1.6T cables.