News
Broadcom competes with Credo and Lumentum in copper and optical networking solutions
Thursday, March 5, 2026 at 03:01 PM
Broadcom maintains a leading position in both copper and optical networking infrastructure, competing directly with specialized firms like Credo and Lumentum in the data center interconnect market.
Context
As AI clusters scale toward one million XPUs, the interconnect market is undergoing a critical transition. While copper has traditionally dominated inside-the-rack connectivity, Broadcom recently signaled that major customers will maintain copper-based chip racks through 2028. This outlook bolstered Credo Technology Group, a specialist in Active Electrical Cables (AECs), which reported Q3 2026 revenue of $407 million—a 7.29% beat driven by robust demand for its connectivity solutions. To solidify its position, Credo acquired CoMira Solutions in March 2026 to integrate advanced link layer and security IP into its scale-up AI architectures.
Despite the resilience of copper, Lumentum remains a dominant force in the optical sector, controlling 50-60% of the global EML laser market used in high-speed transceivers. Broadcom competes aggressively across both mediums, utilizing its BCM87851 retimers for copper and its ESUN specification for optical Ethernet scale-up. The global next-generation interconnect market is projected to reach $54.10 billion by 2030, representing an 18.2% CAGR. Investors are closely monitoring this rivalry as Nvidia and others deploy capital into optical infrastructure to overcome the physical power and distance limitations of traditional copper.
Sources (12)
Credo Technology Group Holding Ltd - Credo Acquires CoMira Solutions
BCM87851 | 7nm 4x106G PAM-4 (ACC/AEC) Low-Power PHYConnectivity for AI in the Million XPU Era - MarvellBroadcom beats on earnings and guidance as AI revenue doublesWhy Broadcom Stock Is Getting a Better Response Than Nvidia's Did ...Nvidia's $4 Billion Investment In Optics Companies Lumentum And CoherentEarnings call transcript: Credo Technology Group Q3 2026 sees robust growth By Investing.comPublished Specifications QSFP-DD/QSFP-DD800/QSFP112 HW Rev 6.2 © QSFP-DD MSA
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