Credo CEO Reportedly Says Middle East Holds Long-Term Promise For Data Centers: ‘This Is A Really Resilient Region’

Speaking to CNBC, Brennan said the surge in data center construction spans continents, underscoring broad-based demand for high-speed connectivity solutions.

• Brennan emphasized the Middle East’s durability and long-term growth prospects.
• Credo reported a third-quarter revenue of $407 million with an adjusted earnings per share (EPS) of $1.07.
• For the fourth quarter (Q4), the company expects revenue in the range of $425.0 million to $435.0 million.

Credo Technology Group Holding (CRDO) President, Chairman, and CEO, Bill Brennan, on Tuesday, expressed confidence in the Middle East data center market despite near-term geopolitical headwinds.

Speaking to CNBC, Brennan said the surge in data center construction spans continents, underscoring broad-based demand for high-speed connectivity solutions.

Tensions In Middle East 

While he acknowledged tensions in parts of the Middle East, Brennan emphasized the region’s durability and long-term growth prospects, noting that current instability represents a temporary phase rather than a lasting setback.

“Data centre build-out is global in nature. There’s a lot of promise in the Middle East. Short term the feeling is we gotta get through this period of conflict. This is a really resilient region and i think there’s nothing but upside long term for the region.”

-Bill Brennan, President, Chairman and CEO, Credo Technology

Credo Technology stock traded over 12% lower in Tuesday’s premarket. However, on Stocktwits, retail sentiment around the stock changed to ‘bullish’ from ‘neutral’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘low’ levels in 24 hours. 

The company reported a third-quarter (Q3) revenue of $407 million with an adjusted earnings per share (EPS) of $1.07, both surpassing the analysts’ consensus estimates of $391 million and $0.94, respectively, according to Fiscal AI data. 

Hyperscalers And Emerging Cloud Players

Credo continues to generate substantial revenue from major hyperscale data center operators, which remain central to its business strategy. At the same time, Brennan highlighted a rising category of customers often called “neo-cloud” operators, newer cloud infrastructure providers gaining momentum in the market.

“We do very well with the top hyperscalers in the industry. But there’s a growing segment that are referred to a neo-cloud operators. That’s an up-and-coming group and we see that business increasing,” Brennan added. 

For the fourth quarter (Q4), the company expects revenue in the range of $425.0 million to $435.0 million, with operating expenses between $ 125.5 million and $ 129.5 million. 

CRDO stock has gained over 126% in the last 12 months. 

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