Credo Ventures

Broadcom Soars on AI Revenue Surge Forecast

Broadcom shares rose nearly 5% after CEO Hock Tan told analysts he expects AI chip revenue in 2027 to be "significantly in excess of $100 billion," citing strong demand for custom silicon and AI networking. Tan said Broadcom is approaching roughly 10 gigawatts of capacity across six customers and has secured high‑bandwidth memory and leading‑edge wafer supply through 2028. JPMorgan analysts estimated $12–15 billion in revenue per gigawatt and raised Broadcom’s 2027 AI revenue forecasts to about $120 billion or more; Goldman Sachs highlighted Broadcom’s AI networking and custom silicon advantages versus competitors like Nvidia. Broadcom reported better‑than‑expected quarterly results with AI revenue more than doubling. Component suppliers Credo and Amphenol rallied on bets favoring copper connectivity, while optical vendors Lumentum and Coherent fell.

Lumentum Faces EML Supply Shortage Amid Strong Earnings

ChipStrat analyzes a growing laser supply bottleneck in AI data-center networking driven by demand for electro-absorption modulated lasers (EMLs). Lumentum supplies an estimated 50–60% of the global EML market but is undersupplying customer demand by roughly 30%, according to management remarks on the company’s Q2 earnings call. Long-term agreements (LTAs) lock most capacity through 2027, enabling premium pricing for incremental orders; Lumentum reported revenue of $665M (up 65% YoY) and operating margins rising to 25.2%. Lumentum’s OCS backlog exceeded $400M, and Nvidia announced a $2 billion strategic investment and future purchase commitments across Lumentum and Coherent. Competitors and capacity expansions — notably Coherent’s 6‑inch indium phosphide wafers, Tower and GlobalFoundries scaling silicon photonics, and startup Mesh Optical Technologies raising $50M — pose potential medium-term supply and cost disruption risks.

Brainient CEO: Video Ads Must Be More Interactive

Brainient, a Romanian-founded video ad tech startup, announced a $1.8 million funding round led by Credo Ventures, with Atlas Venture and Estag Capital among backers. The investment will fund London and Bucharest operations and support opening a New York office. Led by CEO Emi Gal, Brainient has developed interactive video formats to boost ad effectiveness within the VAST and VPAID standards. The company offers BrainRolls, a platform for dynamically customizing video ads with interactive layers (e.g., a VW ad enabling a test-drive booking or brochure download), and BrainAds, a hybrid format combining brand messaging with retargeting of products viewed on the advertiser’s site. Early performance described by Gal includes BrainRolls CTRs of 2–3% and engagement of 7–15%, with dwell time doubling the asset length; BrainAds shows 2–3% CTR and ~8% post-click conversions. Brainient, with ~15 employees, lists Volvo, Samsung, Reebok, Guinness Warner Bros, and Paramount as clients.