Credo Technology Group saw its share price nearly halve after it warned that its largest customer had cut future orders.

The company said in an 8-K filing with the SEC that the loss of sales was unrelated to its own performance.

Analysts had been forecasting revenue for Credo's fiscal Q4 2023 (which ends April 29) to hit $58.3 million, but the company now believes it will be between $30-32m.

Credo also said that revenue will remain flat in fiscal 2024, suggesting that the demand reduction is long-term.

Analysts with at least four brokerages believe that the customer - responsible for 44 percent of Credo's revenue in the second quarter - is Microsoft.

"What likely happened is that their biggest customer Microsoft probably had a significant reduction in its (order) forecast for Credo," Needham analyst Quinn Bolton told Reuters.

"Credo in response is thinking 'hey if Microsoft is starting to correct orders may be we need to be more conservative in our outlook'."

In its most recent earnings call, Microsoft and rival hyperscalers revealed that cloud sales were slowing. Last month, Microsoft said that it would lay off 10,000 employees, including some Azure staff.