In the video clip below from a recent episode of The AI Investor Podcast from 24/7 Wall St., Eric Bleeker discusses the crucial role of networking in AI data centers and highlights Credo (NASDAQ: CRDO) as a potential investment opportunity.
One of the key themes explored is the need for significant investment in networking infrastructure to support the growing demands of AI data centers. Using an analogy of F1 racing, Eric explains that while GPUs from companies like NVIDIA serve as powerful engines, without advanced networking—the suspension and other essential components—the full potential of AI data centers cannot be realized. To achieve optimal performance and higher GPU utilization rates, data centers must upgrade to faster port speeds, moving from 100G and 200G to 800G and beyond.
Eric spotlights Credo, a company specializing in active electrical cables and optical digital signal processors, as a promising player poised to benefit from this networking evolution. With expectations of increased revenue in the latter half of 2025 due to the shift toward higher port speeds, Credo represents an opportunity for investors interested in the AI infrastructure space.
Eric also delves into their strategy of diversifying investments across multiple companies in this sector, emphasizing the importance of spreading bets to capitalize on the overarching trend rather than relying on a single dominant winner.
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