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Investors naturally gravitate toward the chips powering artificial intelligence (AI), but a quiet shift is underway beneath the surface. While markets obsess over the peak of the hardware cycle, the bottleneck for scaling AI has shifted to physical data transit and memory capacity.

Credo Technology Group Today

CRDO

Credo Technology Group

$174.46 -4.77 (-2.66%)

As of 02:52 PM Eastern

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$86.49▼

$308.6762.04

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Hyperscalers are discovering that piling thousands of chips into a server rack creates severe data traffic jams. If data cannot move fast enough, expensive compute sits idle.

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New breakthroughs in optical cabling and memory position Credo Technology Group NASDAQ: CRDO as an essential tollbooth for next-generation hyperscale infrastructure. Solving these basic physical constraints offers a compelling thesis for investors looking beyond the usual semiconductor sector plays.

Gridlock at Layer-Zero: Rewiring the AI Data CenterWhen data center clusters scale to tens of thousands of machines, the physical wiring begins to hit the limits of physics. Copper cables can lose signal integrity over longer distances, limiting how large a single server cluster can grow.

To span the distance across a large facility, operators traditionally turn to optical fiber connections. The issue is that traditional optics consume too much power and generate excess heat, which severely taxes the facility's overall power budget and cooling capacity.

Power constraints now dictate the total output capacity of modern AI data centers. If an operator spends too much electricity moving data across the room, they have less electricity available to actually process that data.

Credo Technology Group operates directly at this intersection. By providing the connective tissue that lets hyperscalers expand their networks without overloading their power grids, the company shifts the economic equation for facility operators. Credo recently unveiled a dual-catalyst approach to solve both networking and memory constraints, expanding its total addressable market well beyond its historical active electrical cable business.

Unlocking the Fast LaneThe first catalyst centers on the newly announced 1.6T ZeroFlap Active Light Cable. Designed specifically for row-scale and front-end network connectivity, this micro-emitter-based optical cable tackles the mid-reach distance gap that traditional copper cannot bridge.

From a business perspective, this technology's operating efficiency is what makes it compelling. The architecture splits heavy 200G data lanes into lower-rate optical channels using standard non-return-to-zero modulation.

For investors, this translates to a distinct competitive advantage. It bypasses the power-hungry digital signal processing typically required in complex optical solutions. Operating at about 12W per cable end, the hardware significantly reduces the data center's thermal load.

The new technology offers up to 50 meters of reach while maintaining copper-class reliability, boasting a targeted average of 100 million hours mean time between failures. While commercial shipping is slated for roughly 2027, the product offers a clear view of how Credo plans to capture market share as data centers grow.

The second catalyst attacks the memory wall, the problem of AI chips processing data faster than memory can feed it to them. In a recent collaboration with Advanced Micro Devices NASDAQ: AMD, Credo demonstrated its OmniConnect Weaver memory gearbox integrated directly with the AMD Versal AI Edge Series Gen 2 platform.

Artificial intelligence inference requires substantial amounts of readily available memory to function efficiently. Historically, expanding memory bandwidth meant using expensive custom silicon parts to link chips to memory. Credo's OmniConnect platform delivers terabyte-scale memory using cheaper, standard chip packaging.

By eliminating the need for custom silicon, the technology democratizes high-performance memory scaling. This opens up a new revenue channel for Credo in compute-memory architecture, proving the company can innovate beyond cables.

Paving a Unified Highway: The OCP Standardization PushCreating excellent hardware is only half the battle in the infrastructure sector, as gaining widespread adoption requires building a reliable ecosystem. To that end, Credo recently launched the Short-Reach Micro-Emitter Optics Workstream within the Open Compute Project.

Partnering with prominent optical suppliers across the industry, the initiative aims to standardize wide parallel optical connectivity. Hyperscalers generally avoid proprietary hardware because it creates vendor lock-in and supply chain vulnerabilities. By pushing to standardize micro-emitter specifications, Credo lowers the barrier to entry for data center operators scaling to tens of thousands of accelerators. In effect, it is essentially writing the rulebook that the rest of the industry will follow.

From a risk management perspective, this standardization serves a strategic purpose. Currently, Credo relies heavily on two primary customers for a large portion of its revenue. This creates execution risk. An open, shared standard creates a pathway for Credo to attract a broader base of hyperscale clients, diluting that customer concentration risk over time and stabilizing future cash flows.

Reconciling Growth With Premium ValuationsBalancing these tailwinds against current valuation metrics requires a pragmatic approach. Credo currently trades at metrics that reflect high growth expectations. The trailing price-to-earnings ratio sits near 60, but the forward multiple compresses to 34.

Forward multiple compression of this magnitude requires flawless operational execution, which Credo has successfully delivered in recent quarters. Recent quarterly revenue reached approximately $479 million, representing nearly 115% year-over-year growth. This triple-digit top-line expansion makes the elevated forward multiple much easier to digest for growth-oriented portfolios.

Credo Technology Group Holding Ltd. (CRDO) Price Chart for Thursday, October, 15, 2026

Recent market action offers an interesting context for potential accumulation. Credo's stock has fallen about 20% over the past five days. Rather than signaling a fundamental deterioration in the core business, the price action closely tracks sector-wide profit-taking across high-growth infrastructure names, mirroring peers like Astera Labs NASDAQ: ALAB.

Destination 2027: Bridging the Gap to Optical DominanceThe transition from copper limitations to micro-emitter optics represents a multi-year secular trend. Because the flagship optical cables will not begin commercial shipping until roughly 2027, the bridge to that revenue cycle relies on Credo maintaining momentum with its existing active electrical cables and retimers. Any unexpected reduction in capital expenditures from its two dominant customers could weigh on the stock price before the newer adoption cycles fully materialize.

Investors tracking the physical build-out of the aAI economy might view the recent volatility as a broader market rotation rather than a specific company flaw. Those with an appetite for strategic infrastructure plays may want to monitor Credo as its standardization initiatives gain traction across the broader data center ecosystem.

Should You Invest $1,000 in Credo Technology Group Right Now?Before you consider Credo Technology Group, you'll want to hear this.

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Credo Technology just posted triple-digit revenue growth for the eighth quarter in a row, yet the stock sits more than 30% below its 52-week high. Whether that gap is a buying opportunity or a warning sign depends on two product…

Our 24/7 Wall St. price target for Credo Technology (NASDAQ:CRDO | CRDO Price Prediction) is $260.86 over the next 12 months. That points to meaningful upside from today’s price, and our model rates the stock a buy.

24/7 Wall St. Price Target Summary Metric Value Current Price $204.22 Price Target from 24/7 Wall St. $260.86 Upside 27.7% Recommendation BUY Confidence Level 90% Shares were down 5.69% by noon Monday, and that pullback widens the gap to our target. Our confidence is high because Credo continues beating estimates and guiding higher.

Doubling from here would mean reaching $408.44. Getting there by 2027 would take our bull scenario and then some. Our model’s five-year bull path does cross that level by October 2028.

A Volatile Rally Built on Triple-Digit Growth Credo is up 41.93% year to date and 21.62% over the past month. It has also slipped 6.6% in the past week. The stock sits 33.8% below its 52-week high of $308.67 and 136.1% above its low of $86.48.

In fiscal Q1 2027, revenue rose 114.73% to $479 million, beating the $470.38 million consensus. Non-GAAP EPS came in at $1.20 against estimates of $1.1651, which makes eight consecutive beats. Management guided Q2 revenue to $525 million to $535 million and expects fiscal 2027 growth of more than 85%.

Why Bulls See $335 and Beyond The bull case reaches $335.60, or 64.3% upside. Optics is the biggest driver. Management expects optical revenue above $600 million in fiscal 2027, with ZeroFlap optics, silicon photonics chips and optical DSPs each exceeding $100 million. Active LED cables (ALCs) and OmniConnect memory products are due to start contributing in fiscal 2028.

Credo says OmniConnect could add “thousands of dollars of Credo content per GPU”. Analysts are firmly on board, with 5 Strong Buy ratings, 14 Buy ratings and a consensus target of $279.09.

Concentration and Margin Risks to Keep an Eye On Our bear case comes out at $205.95, about where the stock trades now. Customer concentration is the biggest risk. Credo’s largest customer accounted for 33% of Q1 revenue, and the second-largest added 28%.

GAAP gross margin go down to 64.5% from 68.2%, and share-based compensation reached $87.98 million. Part of that margin fall came from amortizing intangible assets tied to an acquisition, a non-cash accounting charge. Non-GAAP gross margin held at 68%.

Credo Grows Faster Than Marvell and Costs Less Than Astera Marvell Technology (NASDAQ:MRVL) sells optics and connectivity products into the same AI data center buildout. Its revenue rose 36.55% last quarter, with a non-GAAP gross margin of 58.9%. Credo rose faster and earned higher margins, which supports a premium valuation.

Astera Labs (NASDAQ:ALAB) is the closest match on growth, with revenue up 104.5%. Shares are valued at about 271x trailing earnings. Credo trades at about 30x forward earnings, so our target looks reasonable, and arguably conservative, by comparison.

Company Latest Revenue Growth Market Cap Credo 114.73% $38.38B Marvell 36.55% $233.8B Astera Labs 104.5% $57.5B Credo Earns a Buy Rating at $204 The 24/7 Wall St. price target of $260.86 carries a buy rating and 90% confidence. Credo matches fast growth with a modest forward multiple.

The bull case improves if the optical ramp lands in the second half of fiscal 2027. The outlook weakens if one of Credo’s largest customers cuts orders.

Year Price Target from 24/7 Wall St. 2026 $220.00 2027 $261.89 2028 $296.25 2029 $327.60 2030 $342.10 These figures assume Credo continues executing its current strategy. The biggest key factors are how fast ALC and OmniConnect sales ramp in either direction, and any slowdown in AI infrastructure spending.

Contact [email protected] for any questions or corrections.

Credo Technology is growing faster than Marvell and Astera Labs yet trades at a fraction of their valuations, which raises a question every AI investor should sit with before the next earnings report.

The 24/7 Wall St. price target for Credo Technology (NASDAQ:CRDO | CRDO Price Prediction) is $258.39, which means 21.17% upside from the current $213.24. The model rates the stock a buy with high confidence.

Metric Value Current Price $213.24 Price Target from 24/7 Wall St. $258.39 Upside/Downside 21.17% Recommendation BUY Confidence Level 90% Management expects fiscal 2027 revenue growth of more than 85% and more than $600 million of optical revenue. Even so, Credo trades at a forward P/E of about 31x.

Wall Street sits further out: the consensus target is $279.09, with 5 Strong Buy ratings, 14 Buy ratings and 1 Hold.

Credo Has Recovered From Its Post-Earnings Drop Shares closed at $227.76 on the day of the fiscal Q1 2027 earnings report, then fell to $170.57 by September 5. The stock has gained back much of that ground, rising 26.76% over the past month and 47.78% year to date. It sits about 30.9% off its 52-week high of $308.67.

Revenue of $479M beat the $470.38M estimate and grew 114.7% year over year. Non-GAAP EPS of $1.20 also came in ahead of the $1.17 estimate.

GAAP EPS of $0.78 missed expectations of $0.93. The gap comes from amortization tied to the Dust Photonics acquisition, which raised goodwill to $986.45M. For fiscal Q2, Credo guides revenue to $525M to $535M.

Optics Could Push Credo Toward $335 The bull case puts Credo at $335.48. Active electrical cables (AECs) remain Credo’s largest business, but its optics portfolio is growing faster. Management expects ZeroFlap optics, silicon photonics chips and optical DSPs to each contribute more than $100 million in fiscal 2027.

OmniConnect could add “thousands of dollars of Credo content per GPU” starting in fiscal 2028. Management also expects non-GAAP net margin in the vicinity of 50% in fiscal 2027.

Customer Concentration Is the Biggest Risk The bear case is $204.22. Credo’s largest customer accounted for 33% of revenue last quarter, and the second-largest accounted for 28%. GAAP gross margin contracted to 64.5% from 68.2%, and inventory rose by $62.2 million in a single quarter.

There is a reasonable explanation for both: the margin hit comes from acquisition amortization, and the inventory build supports the optical growth. Non-GAAP gross margin held at 68.0%.

Credo Is Cheaper Than Marvell and Astera Labs Marvell Technology (NASDAQ:MRVL) competes directly with Credo in data center DSPs and interconnect.

Astera Labs (NASDAQ:ALAB) is the closest pure play on AI connectivity. Astera grew revenue 104.5% last quarter, slower than Credo, yet it trades at nearly twice Credo’s sales multiple. Marvell grew revenue 36.5% and carries about twice Credo’s forward P/E.

Company Forward P/E Price/Sales (TTM) Credo 31x 25.99 Marvell 62x 26.12 Astera Labs 56x 50.09 Compared with these peers, the 24/7 Wall St. price target looks conservative.

Credo’s Growth Outweighs Its Volatility Our 24/7 Wall St. price target of $258.39 carries a buy rating with 90% confidence. What tips the scale for me is the valuation.

Credo is growing faster than either peer and trades at a lower forward multiple (we reverse-engineered what the biggest tech winners looked like early in a free playbook you can grab here). I’d turn more bullish if 1.6T DSP revenue arrives on schedule. I’d grow cautious if a top hyperscaler pulls back on spending.

Credo Technology Price Prediction 2026-2030 Beyond that, here is where our model projects Credo could trade at the end of each year, based on our base-case scenario:

Year Price Target from 24/7 Wall St. 2026 $236.57 2027 $258.64 2028 $298.29 2029 $313.76 2030 $339.58 The estimates rest on Credo continuing to execute on its current strategy. The results could land well above or below these figures depending on how fast hyperscalers adopt Active LED Cables and whether AI capital spending slows.

Contact [email protected] for any questions or corrections.

Here in Florida, dollar weeds can overrun a lawn in a single rainy month. Credo Technology Group Holding (CRDO +2.21%) has been growing at a similar clip in the data center networking space. Revenue more than tripled in fiscal 2026, and management expects another jump of more than 85% this year.

That's what happens when you sell picks and shovels in the biggest gold rush in tech. Actually, scratch that metaphor: Credo sells the extension cords.

Nvidia and its AI accelerators get the market-moving glory, but somebody has to wire tens of thousands of GPUs together and keep those connections from glitching. That's Credo's job. Its active electrical cables (AECs) handle short hops inside server racks, and a growing optical lineup covers longer distances.

Three years from now, Credo's position will hinge on two factors: the pace of AI infrastructure spending and the success of a crowded product pipeline.

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A check-engine light for AI clusters Credo's real specialty is reliability. AI clusters suffer from "link flaps," which are network connections that blink off and on without fully failing. A single flap can force operators to reset an entire cluster, losing hours of valuable computing work. In last month's Q1 2027 earnings call, Credo CEO Bill Brennan said that some customers have lost 10% to 20% of their GPU utilization to this problem.

So Credo adds smart software to its high-performance hardware. The PILOT platform monitors every link in real time. Brennan compares it to adding a yellow check-engine light to networks that used to show only green or red. One customer cut the computing cluster bring-up time from approximately seven weeks to five days. When a month of idle AI hardware can cost hundreds of millions of dollars in lost revenue, that kind of speed sells itself.

Three years of new toys Today, Credo is mostly a copper-cable company with a fast-growing optical side business. By fiscal 2028, it plans to add microLED cables that reach 30 meters, gearbox chips that help AI processors tap more memory, and dense optics for in-rack networks. Brennan describes Credo as "agnostic to the medium." It doesn't care whether your bits travel by copper or by light, as long as they ride on Credo gear.

Meanwhile, the hyperscalers keep shoveling cash into the furnace. Microsoft, Amazon, Alphabet, and Meta Platforms expect to spend about $745 billion on capital expenditures in 2026, up from $413 billion last year. Following that trend, analysts see Credo's revenue climbing from about $1.3 billion in fiscal 2026 to $3.9 billion in fiscal 2028.

What could go wrong Customer concentration is the largest risk. The two biggest customers accounted for 61% of first-quarter revenue. Chip giants Broadcom (AVGO +0.39%) and Marvell Technology (MRVL +0.25%) compete for many of the same contracts. And co-packaged optics could shrink the pluggable-component market where Credo earns most of its money.

Credo's growth doesn't come cheap, either. Shares trade at 77 times trailing earnings and 25 times sales on Oct. 9. Growth-friendly metrics look kinder: the PEG ratio sits around 0.4, and the stock trades at about 22 times fiscal 2028 earnings estimates.

Image source: The Motley Fool.

The verdict So where will Credo be in 2029?

Probably a much bigger business, with a broader product menu and a less lopsided customer list. The stock is a separate question. At this price, investors are betting the AI data center boom keeps rolling for years. If it does, Credo should keep spreading like a weed. If it doesn't, the share price could wilt.

Anders Bylund has positions in Alphabet, Amazon, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Broadcom, Marvell Technology, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Credo Technology (CRDO +2.14%) has become one of the hottest ways to invest in artificial intelligence (AI) without buying a traditional semiconductor stock. The company doesn't make GPUs or high-bandwidth memory (HBM). Instead, Credo specializes in moving data between processors, switches, memory, and other components inside AI data centers. While this might sound less exciting than designing the next accelerator, Credo's picks-and-shovels are increasingly needed as AI chip clusters require high-speed connectivity.

As of this writing (Oct. 7), Credo stock has surged 52% in 2026. While that's an impressive return, the rally might just be getting started. Let's assess what a $5,000 investment in Credo Stock could become by 2030.

Image source: The Motley Fool.

Credo is addressing one of AI's biggest bottlenecks Buying more GPUs isn't useful for AI development if they can't communicate efficiently. Credo aims to solve the data bottleneck through its copper interconnects, called ZeroFlap Active Electrical Cables (AECs), as well as digital signal processors (DSPs), Ethernet retimers, and OmniConnect memory solutions. Together, these technologies represent the pipes that move data quickly while reducing power consumption, thereby improving network reliability for AI workloads.

Credo's growth has surged on the backdrop of exploding demand for artificial intelligence (AI) infrastructure. During fiscal 2026 (period ended May 2), the company generated $1.3 billion in sales -- up 206% year over year. Growth accelerated into this year, as the company reported sales growth of 115% year over year to $479 million during the first quarter of fiscal 2027.

The company's acquisition of DustPhotonics brought silicon photonics technology in-house. The rationale behind the deal is to help Credo build a vertically integrated connectivity stack to address both electrical and optical interconnects across AI infrastructure buildouts.

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Wall Street is bullish on Credo Credo is transforming from an under-the-radar semiconductor company into a high-expectation AI stock. In investment terms, this means great earnings won't necessarily translate to a rising stock price. The company needs to prove it can outperform already aggressive expectations.

CRDO Revenue Estimates for Current Fiscal Year data by YCharts

Wall Street expects revenue to reach $5.1 billion by fiscal 2029, essentially double this year's forecast and quadruple what Credo reported last year. These numbers clearly represent extraordinary growth and give us something to think about when valuing the stock.

Credo stock is a speculative opportunity At the moment, Credo trades at a price-to-sales (P/S) ratio around 23. This is pretty rich considering the company is only on pace to generate a little more than $2 billion in revenue this year and is still scaling profits. As the company matures and hopefully translates AI infrastructure spending from primarily a sales catalyst into larger profits, investors should expect Credo's valuation multiples to compress.

If the company achieves the fiscal 2029 revenue target and receives, say, a 12 P/S ratio, the company would command an implied market capitalization of roughly $61 billion. That represents roughly 49% upside to Credo's current trading levels, making the initial $5,000 investment worth approximately $7,450.

The subtle theme here is that even though Credo has a legitimate long-term opportunity spanning copper connectivity, optics, silicon photonics, and memory it may not be the most lucrative stock to buy at today's price. The returns in my analysis above are attractive considering the timeframe, but they are also far from guaranteed. A lot needs to go right for Credo to continue doubling in size for consecutive years, all while maintaining a premium valuation.

To me, Credo looks like it could become a winner from the AI infrastructure boom in the long run, but for now, it is a stock I'd prefer to accumulate selectively through dollar-cost averaging rather than following the crowd into momentum swings.

Key Takeaways Credo's retimer business delivered record revenue, led by Screaming Eagle and Blue Heron growth.Blue Heron supports 224G multiprotocol AI scale-up links, expanding Credo's reach across architectures.Toucan's PCIe Gen 6 compliance positions Credo to benefit as PCIe adoption expands. Credo Technology Group Holding Ltd. (CRDO - Free Report) has rapidly evolved from a niche connectivity semiconductor company into a major supplier to the AI infrastructure ecosystem. While the Active Electrical Cable (AEC) business remains CRDO’s largest revenue driver and continues to expand, its retimer portfolio is emerging as another potentially important growth engine. Credo's fiscal first-quarter revenue reached $479 million, up 114.7% year over year, while management guided for second-quarter revenue of $525-$535 million.

Credo has been aggressively expanding its retimer portfolio. In January 2026, the company introduced Blue Heron, a 224G multiprotocol AI scale-up retimer designed to support UALink, ESUN and Ethernet. The product is intended for applications with extended cable and PCB backplane links and includes telemetry and link-health monitoring. It also made progress in PCIe retimers. Its Toucan PCIe 6.0 technology-capable retimer achieved PCI-SIG compliance at 32 GT/s earlier in 2026. In August, Credo announced that its Toucan Gen6x16 PCIe retimer achieved PCI-SIG 6.x compliance at 64 GT/s and joined the PCI-SIG Integrators List.

The retimer business delivered record revenue, driven by increasing scale-up deployments. The growth was led by its Screaming Eagle retimer at 100G per lane, while the Blue Heron retimer began contributing at 200G per lane. Looking ahead, CRDO expects further opportunities for the Toucan retimer as PCIe Gen 6 adoption expands, while Screaming Eagle and Blue Heron are positioned to benefit from growing demand across Ethernet and UALink. As scale-up architectures continue to evolve, customers are adopting different protocols, topologies and connectivity approaches. CRDO’s ability to support multiple protocols gives it the flexibility to participate across these emerging architectures.

Rising bandwidth needs, a broader multiprotocol portfolio, faster product innovation and strong companywide growth position Credo’s retimer business for further expansion. However, major semiconductor companies and specialized competitors like Astera Labs (ALAB - Free Report) and Broadcom Inc. (AVGO - Free Report) are competing in the retimer and connectivity markets. Maintaining performance, power-efficiency and cost advantages will be essential for CRDO.

CRDO’s Retimer Race: Can It Maintain Its Edge?In July, ALAB expanded its Taurus portfolio with the industry’s first OCP-standard footprint-compatible 3.2T Smart Retimers and Smart Redrivers, designed for 200G-per-lane Ethernet, UALink and ESUN connectivity in AI infrastructure. The new 16-lane Smart Signal Conditioners feature the Smart Swap capability, enabling customers to switch between retimers and redrivers without redesigning circuit boards. Management expects the new offerings to double the Taurus market opportunity to more than $4 billion by 2030. Third-quarter revenue is expected to be $540-$560 million, with the midpoint implying 40% sequential growth, driven by Scorpio X-Series, Aries PCIe 6 retimers and preproduction Taurus shipments.

Broadcom is benefiting from expanding AI infrastructure spending, with custom XPUs and networking driving semiconductor growth while VMware supports infrastructure software. Multi-year engagements with six XPU customers, broader Ethernet adoption and rising AI deployments provide long-term revenue visibility. Broadcom continues to invest in PCI Express switching, optical DSPs, EMLs, VCSELs and continuous-wave lasers. Management expects AI networking revenue to grow at a pace similar to XPUs over the next few years, broadening Broadcom’s content opportunity as AI systems scale. It now expects fiscal 2026 AI revenue of $58 billion, up 186% from fiscal 2025.

CRDO Price Performance, Valuation and EstimatesShares of CRDO have surged 31% in the past month compared with the Electronics-Semiconductors industry’s growth of 1.7%.

Image Source: Zacks Investment Research

In terms of the forward 12-month price/sales ratio, CRDO is trading at 13.56, higher than the Electronics-Semiconductors industry’s multiple of 5.14.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CRDO’s earnings for fiscal 2027 has seen a significant uptick over the past 60 days.

Image Source: Zacks Investment Research

CRDO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO – Get Free Report) fell 4.8% on Monday after an insider sold shares in the company. The stock traded as low as $206.35 and last traded at $208.1210. 1,404,463 shares changed hands during trading, a decline of 81% from the average daily volume of 7,497,591 shares. The stock had previously closed at $218.64.

Specifically, COO Yat Lam sold 50,000 shares of the firm’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $205.22, for a total value of $10,261,000.00. Following the completion of the transaction, the chief operating officer owned 2,254,169 shares in the company, valued at $462,600,562.18. This trade represents a 2.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total transaction of $5,333,075.00. Following the completion of the transaction, the chief technology officer owned 5,662,397 shares of the company’s stock, valued at $1,098,108,650.21. This trade represents a 0.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, COO Yat Lam sold 50,000 shares of the company’s stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $206.30, for a total transaction of $10,315,000.00. Following the sale, the chief operating officer owned 2,479,169 shares of the company’s stock, valued at approximately $511,452,564.70. This represents a 1.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades CRDO has been the topic of several research analyst reports. Wall Street Zen cut shares of Credo Technology Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Rosenblatt Securities upped their target price on Credo Technology Group from $215.00 to $235.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 2nd. Barclays raised their price target on Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a report on Monday, July 20th. Stifel Nicolaus lowered their target price on shares of Credo Technology Group from $350.00 to $310.00 and set a “buy” rating on the stock in a research note on Monday. Finally, Weiss Ratings raised shares of Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, September 18th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Credo Technology Group currently has an average rating of “Moderate Buy” and a consensus target price of $262.67.

View Our Latest Stock Report on Credo Technology Group Credo Technology Group Trading Down 3.6% The business’s fifty day simple moving average is $207.21 and its 200-day simple moving average is $198.59. The firm has a market cap of $39.62 billion, a P/E ratio of 74.42, a price-to-earnings-growth ratio of 0.87 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO – Get Free Report) last posted its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.03. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%.The company had revenue of $479.00 million for the quarter, compared to analysts’ expectations of $473.30 million. During the same period last year, the firm earned $0.52 earnings per share. Credo Technology Group’s quarterly revenue was up 114.7% on a year-over-year basis. Analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Hedge Funds Weigh In On Credo Technology Group A number of hedge funds and other institutional investors have recently made changes to their positions in CRDO. Polaris Financial Partners purchased a new stake in Credo Technology Group in the third quarter worth $681,000. GoalVest Advisory LLC increased its position in Credo Technology Group by 49,226.5% during the 3rd quarter. GoalVest Advisory LLC now owns 24,170 shares of the company’s stock valued at $4,708,000 after purchasing an additional 24,121 shares during the period. Burkett Financial Services LLC bought a new position in Credo Technology Group in the 3rd quarter worth $33,000. QRG Capital Management Inc. raised its holdings in Credo Technology Group by 20.8% in the 2nd quarter. QRG Capital Management Inc. now owns 6,527 shares of the company’s stock worth $1,774,000 after purchasing an additional 1,125 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. purchased a new stake in shares of Credo Technology Group in the 2nd quarter worth about $548,000. Institutional investors own 80.46% of the company’s stock.

Credo Technology Group Company Profile (Get Free Report)

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for data infrastructure. Its technologies are designed to improve the performance, power efficiency and reliability of connections used in cloud computing, artificial intelligence, high-performance computing, telecommunications and enterprise networks.

The company’s product portfolio includes serializer/deserializer (SerDes) intellectual property, integrated circuits, active electrical cables and optical connectivity products.

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Nvidia gets the headlines, but the company quietly linking all those GPUs together just posted 115% revenue growth and added optics as a second major growth engine. Here is the case for a 2027 price target that leaves Wall Street's…

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Credo Technology Group (NASDAQ:CRDO | CRDO Price Prediction) sells the parts that connect AI clusters. That means active electrical cables (AECs), optical DSPs and retimers, plus silicon photonics chips since the Dust Photonics deal. Everyone watches NVIDIA (NASDAQ:NVDA).

I watch the company that links those GPUs together. Revenue for the first quarter of fiscal 2027 reached $479 million, up 115% year over year. The stock is up 46.69% this year at $211.07 but still sits well below its peak. Can Credo hit $350 in 2027?

What’s Holding Credo Back Right Now Shares trade 31.6% below their 52-week high of $308.67. They are down 6.82% over the past month, even after a 25.45% rebound this week. Credo beat estimates in the September earnings report, but the details concerned investors.

GAAP gross margin fell to 64.5% from 68.2%. Stock-based pay came to $87.98 million. Management expects non-GAAP operating expenses to rise about 55%. Two customers made up 33% and 28% of revenue. And with a beta of 3.23, any dip in AI spending hits this stock hard.

Wall Street Sees 32.7% Upside. Our Model Says 15.0% The consensus target is $280.10, meaning 32.7% upside. Analysts rate it 4 Strong Buy, 14 Buy, 1 Hold and 0 Sell. The base case targets $242.81, or 15.0% upside. The range runs from $193.32 in the bear case to $334.45 in the bull case, and the model’s confidence is high.

I think both views are too conservative. 95% of analysts are bullish, and earnings growth added 0.03 to our adjustment. The fiscal 2028 EPS estimate has risen to $9.7049 from $8.6909 90 days ago. Estimates keep having to catch up with the business.

Here’s What It Takes for Credo to Reach $350 Reaching $350 from today’s price of $211.07 would require a gain of 65.8%.

With forward EPS of $7.1551, a price of $350 meaning a forward P/E of 49x. Our base case already meaning 47x, so the bold target needs about 2x more multiple expansion.

Earnings growth makes that expansion easier to accept. Against fiscal 2028 EPS, $350 is about 36x. Management expects more than $600 million in optical revenue and more than 85% total revenue growth in fiscal 2027. Credo also joined the Bloomberg 500 on August 26. CEO Bill Brennan said “What’s different today is that we’re adding optics as another major growth engine.”

The main risk is a pause in hyperscaler spending, which a stock this volatile would feel right away. Credo is exactly the kind of non-chipmaker supplier that quietly wins from the AI expansion, and we covered seven of them, from power to cooling to networking, in a free report you can grab here.

Where Credo Trades Today vs Its Earnings Power Credo trades at 29x forward EPS. That is cheap for a company whose fiscal 2026 revenue grew 205.7% to $1.335B. Its 52-week range runs from $86.48 to $308.67.

Since trading data begins in January 2022, the stock has returned 1,711.76%. At today’s multiple, there is room for the rerating that $350 needs.

Is $350 Realistic? Here’s My Take Getting to $350 takes a 65.8% gain. I see it as a stretch that is still within reach.

Three things need to happen. Optical revenue has to clear $600 million. The 1.6T DSP has to start producing revenue on schedule. And non-GAAP net margin has to stay near 50%. A cut in hyperscaler capex or problems integrating Dust Photonics would halt it. Returns at this level shouldn’t be expected every year, but we’ve outlined the path for how Credo could reach $350 in 2027.

Contact [email protected] for any questions or corrections.

A fabless semiconductor company just posted 115% revenue growth, beat earnings, and raised guidance, yet the stock cratered 43% from its highs. One Wall Street analyst thinks the selloff created one of the most mispriced setups in AI infrastructure right…

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Credo Technology (NASDAQ:CRDO | CRDO Price Prediction) currently trades around $175.89, while the average Wall Street price target sits at $282.47. That leaves analysts modeling roughly 60.6% of upside from here, and one Street-high call implies the stock nearly doubles.

Credo is a fabless semiconductor company selling connectivity infrastructure for AI data centers: Active Electrical Cables (AECs), optical DSPs, retimers, ZeroFlap optics, and PILOT diagnostic software. Its portfolio spans “connectivity from millimeters to kilometers” across copper and optical media.

Wall Street has been paying close attention because Credo just posted 115% year-over-year revenue growth and guided for another sequential step higher. Yet the stock has been in freefall. That disconnect is the whole story.

A 43% Drawdown Despite a Blowout Quarter Credo has fallen roughly 43% from its 52-week high of $308.67, with a 25.1% haircut in the last month. The selloff accelerated after the Q1 fiscal 2027 earnings report on September 1.

Revenue of $479 million beat consensus, non-GAAP EPS of $1.20 topped the $1.17 estimate, and management guided Q2 to $525 million to $535 million. But investors focused on customer concentration: the top customer drove 33% of revenue and the second 28%, leaving little margin for error if a hyperscaler pauses orders.

The pullback is company-specific. The S&P 500 slipped only 0.96% over the same one-month window, and AI-adjacent peers held up far better.

Stifel’s $350 Call and Why 19 Analysts Are Standing Pat Stifel Nicolaus analyst Tore Svanberg carries the Street-high $350 price target, implying roughly 99% upside. His thesis: AEC dominance as hyperscalers move to active cables at 800G and 1.6T speeds, expanding design wins at Microsoft and Amazon, and share gains for PAM4 optical DSPs and Line Card retimers.

Management guides to more than $600 million in optical revenue this fiscal year, with ZeroFlap optics, silicon photonics PICs, and optical DSPs each contributing over $100 million. Full-year revenue is expected to grow more than 85% with non-GAAP net margin near 50%.

Of 19 analysts, 4 rate the stock Strong Buy, 14 Buy, 1 Hold, and none Sell. The FY2028 EPS consensus has climbed from $8.69 ninety days ago to $9.70, with 14 upward revisions in the last 30 days against a single downward revision.

The thesis hinges on the second half of fiscal 2027, when management expects the optical inflection to show in reported numbers. If ZeroFlap and silicon photonics ramp on schedule, recent estimate cuts to the October quarter (average EPS of $1.28) should reverse quickly.

Peers Are Rallying While Credo Sinks Credo fell alone. The AI-connectivity cohort has largely held its ground or advanced.

Astera Labs (NASDAQ:ALAB) trades near $303.25, up 82.3% year to date. The average target of $389.95 implies about 28.6% further upside. Of 26 analysts, 7 rate it Strong Buy, 12 Buy, and 7 Hold.

Marvell Technology (NASDAQ:MRVL) sits near $244.25, up 187.4% year to date. The $289.04 average target leaves 18.3% of implied room. Of 44 analysts, 8 rate it Strong Buy, 31 Buy, 5 Hold.

Broadcom (NASDAQ:AVGO) trades near $357.61. Analysts model 48.7% upside to the $531.85 target, with 45 of 49 analysts rating it Buy or Strong Buy.

Across the group, Credo carries the largest consensus-implied upside at 60.6%, and by a wide margin the largest Street-high call. It is the outlier in both directions: worst recent performance, biggest gap to target.

Setup in Plain Numbers Credo trades at $175.89 against a consensus target of $282.47, implying 60.6% upside. Shares are up 22.24% year to date, versus the S&P 500’s 11.7%. Forward P/E stands at 27, reasonable for a company guiding revenue growth north of 85% this fiscal year.

Weighing the Optical Ramp Against Concentration Risk Credo works for investors who believe the FY27 optical inflection lands on schedule and top customers keep buying. Stifel’s $350 target looks like a base case. The bear case is hyperscaler capex digestion arriving before ZeroFlap and silicon photonics ramp; a stumble at either the 33%-customer or 28%-customer would gap the stock lower. Second-half optical numbers are the real test for the cautiously bullish thesis.

Contact [email protected] for any questions or corrections.

Credo Technology Group stock has slumped and moved into a bear market after slumping by nearly 50% from its highest point this year. It dropped to a low of $148 this week, its lowest level since April 14. 

Credo’s slump coincided with the ongoing retreat of other companies in the AI industry, including Coherent, Lumentum, CoreWeave, and Nebius. All these stocks have slumped by over 30% from their peak this year.

CRDO stock has slumped in the past few months as concerns about the technology and artificial intelligence (AI) industry have continued. These concerns rose after several leaders in the AI industry, including those from companies like OpenAI, Anthropic, DeepSeek, and SpaceX, warned about the state of the artificial intelligence industry.

The officials have warned that, left unchecked, AI growth could pose major risks, including ending humanity as soon as 2030. They have also called for a global coordination on the AI industry.

Therefore, investors assume that these fears will lead to a slowdown in the AI industry, which explains why companies in the industry have slumped. 

However, fundamentally, the sector will continue growing as competition between model providers continues. This, in turn, will lead to more demand for GPUs, CPUs, servers, and storage products as the data center buildup continues.

The most recent results showed that Credo Technology’s revenue continued rising in the first quarter. Its revenue rose by 9.6% sequentially and by 114.7% from a year earlier to $479 million. 

This growth is coming from the rising demand for its active electrical cables (AEC), which are copper cables built into the connectors to clean up and retime signals. Its growth also happened because of its optical DSPs, SerDes technology tools, and PCIe /CXL connectors. 

The company and analysts believe that its revenue growth will continue in the near term. 16 analysts tracking the company have an average Q2 revenue growth target of 98% to $531 million. 

For the year, analysts expect the company’s annual revenue to come in $2.5 billion, up by 87% from what it made last year. This growth will continue, rising to over $3.8 billion next year. Chances are that the revenue will be better than that. 

Analysts are largely bullish on the company, with Evercore having a target of $292 and JPMorgan targeting $310. Other analysts, including Bank of America, Roseblatt, TD Cowen, and Susquehanna, see the stock continue rising.

CRDO stock chart | Source: TradingView

The daily chart shows that the CRDO stock has slumped in the past few months. It formed a double-top-like pattern at $284 and a neckline at $176, its lowest level on July 29. 

It has moved below the Strong, Pivot, Reverse level of the Murrey Math Lines tool. The stock has remained below the 50-day Exponential Moving Average (EMA). 

Technicals suggest that the stock will remain under pressure, potentially to the ultimate support level of $125. The alternative is that the stock rebounds as the AI fears ease.

Credo's AI connectivity business is growing at a triple-digit pace, but the gap between its reported profit and actual cash generation raises a question every investor in the stock needs to answer before the next earnings report lands.

Credo (NASDAQ:CRDO | CRDO Price Prediction) closed its fiscal first quarter with $236.3 million in adjusted profit and $82.9 million in free cash flow, and the stock has moved as if investors noticed. Shares last traded at $150.39, down 42.14% over the past month, while the Wall Street consensus price target sits at $281.47. That leaves a wide spread between where the market is pricing the AI connectivity chipmaker and where the sell side thinks it belongs.

Credo’s business is clearly growing. Revenue rose 114.7% year over year, and management guided fiscal Q2 revenue to $525 million to $535 million. The question is whether the cash from that growth matches the profit being reported.

That gap is the single best test of whether the drawdown is opportunity or trap. Adjusted profit added back stock compensation and other non-cash items. Operating working capital consumed a large slug of cash. Whether both reverse depends on a second-half optical ramp management has staked the year on.

Why the Stock Dropped and Where It Sits Against Consensus CRDO has fallen 42.14% in the past month, from $259.90 to $150.39. The one-year change is now negative 8.29%, and the year-to-date gain has narrowed to 4.52%.

The consensus price target across sell-side desks stands at $281.47. That target reflects what the sell side currently publishes rather than a forecast this column endorses, and the drawdown has opened a real spread against it.

Ratings coverage still skews positive: 4 Strong Buy, 14 Buy, 1 Hold, and zero Sell ratings. Recent coverage has largely reiterated rather than downgraded through the September 1 report.

Adjusted Profit Versus Cash, Decomposed Start with GAAP. Credo reported $129.4 million in net income for the quarter ending July 31, 2026. Non-GAAP net income was $236.3 million. Operating cash flow was $90.2 million, and free cash flow, defined as operating cash flow minus $7.3 million in capital expenditures, was $82.9 million.

Two bridges explain most of the difference. Stock-based compensation of $87.98 million was added back to reach the adjusted figure, though it is a real cost to existing shareholders through dilution. The second bridge is a net use of cash in operating working capital, which management flagged directly.

CFO Dan Fleming told investors that “Cash flow from operations in the first quarter was $90.2 million, down $92 million sequentially due primarily to changes in working capital.” Excluding stock compensation from a non-GAAP measure is standard practice. The cash statement, however, does not benefit from that add-back.

Where the Cash Actually Went, and Whether It Comes Back Inventory did the heavy lifting. Ending inventory was $313.1 million, up $62.2 million sequentially, and the change-in-inventory line on the cash flow statement was a use of $61.54 million.

Fleming framed the build as preparation: “Working capital is increasing. We’re leaning in from a supply chain standpoint.” Inventory and any prepaid capacity deposits convert back into cash only if the expected demand actually arrives.

A supply build ahead of a ramp looks identical on the cash flow statement to a demand miss until the following quarter reports. Fiscal Q2 revenue guidance of $525 million to $535 million is the first data point that will begin to resolve the ambiguity.

The Counterweight Operating cash flow stayed positive at $90.2 million and grew substantially against the $54.16 million posted in the year-earlier quarter. The business is generating cash, just less than the adjusted headline suggests.

Cash and equivalents ended the quarter at $764.3 million, down $679 million from the fourth quarter, but that decline mainly reflects the acquisition of Dust Photonics. Goodwill jumped from $92.8 million to $986.4 million. Blending acquisition spending into a free cash flow read would misstate the operating picture.

One quarter of working capital drag does not establish permanent deterioration in cash conversion. Management is describing the build as preparation for growth rather than distress, and the fiscal 2027 plan calls for more than 85% year-over-year total revenue growth and more than $600 million in optical revenue.

Bull and Bear Case for CRDO Stock The bull case is that the AI infrastructure ramp is real, guidance implies continued sequential expansion, and the inventory build converts on schedule as second-half optical shipments arrive. If free cash flow catches up to reported profit, the gap to the $281.47 consensus target looks like a mispriced entry rather than a warning.

The bear case is customer concentration. Four customers each cleared 10% of revenue in the prior quarter, with the top two at 33% and 28%. A push-out from any one of them turns a working capital build into a demand air pocket, and quarterly stock-based compensation of $87.98 million is a genuine cost to per-share value regardless of how it flows through the income statement.

The fiscal Q2 report will decide between them. Revenue in line with guidance, with operating cash flow catching up to non-GAAP net income, would validate the bull case. A miss on either would confirm what the past month’s decline is already pricing.

Contact [email protected] for any questions or corrections.

Key Takeaways Credo posted 115% revenue growth, seven straight triple-digit quarters and a 48.2% non-GAAP operating margin.Broadcom's AI chip revenues jumped 221% to $16.7B, with XPUs making up 73% of AI revenues.Credo trades at 9.5X forward sales versus Broadcom's 9.93X, while its earnings estimates rose 4.2%. Both Credo Technology Group Holding Ltd (CRDO - Free Report) and Broadcom (AVGO - Free Report) are beneficiaries of the AI buildout cycle. The explosive AI infrastructure buildout has put the spotlight on semiconductor companies as the reshaping of the data center connectivity landscape is creating massive demand for high-speed interconnect and optical solutions.

While both companies operate in the same space, their positioning, scale and strategies differ significantly.

Broadcom is a diversified semiconductor and infrastructure software giant, while Credo specializes in high-speed connectivity solutions, including integrated circuits (ICs), retimers, optical DSPs, Active Electrical Cables (AECs), SerDes chiplets and SerDes IP licensing.

For investors, the choice between these two companies is not straightforward, as Broadcom offers scale and profitability while Credo brings agility and innovation.

Let us break down the fundamentals, valuations, growth outlook and risks for each company to determine which stock stands out.

Credo: Solid Growth MomentumCredo reported fiscal first-quarter revenues of $479 million, up 10% sequentially and 115% year over year. The company has posted triple-digit year-over-year growth for seven consecutive quarters.  

As AI clusters grow larger, connectivity is emerging as a critical constraint. Management highlighted that the challenge is no longer just bandwidth, but also reliability, power efficiency, signal integrity, telemetry and serviceability. Credo believes its system-level approach, which combines silicon, firmware, manufacturing tests and qualification, remains a key differentiator.

AEC is a system-level product for CRDO and its core growth engine. The company now has deep relationships with five hyperscalers, alongside expanding engagement with Neocloud customers. Credo continues to see higher AEC penetration within existing customers as deployments scale, while the shift toward 200-gig-per-lane 1.6T ports provides another growth opportunity.

The most significant shift in Credo’s business mix is unfolding in its optical segment. Management continues to project more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million. Credo added that its optical DSP business generated “record revenues” in the fiscal first quarter. The company also recognized its first silicon-photonics PIC revenues following the DustPhotonics acquisition, with initial wins involving 800-gig and 1.6T optical transceivers. Credo continues to forecast more than 85% year-over-year revenue growth for fiscal 2027, aided by an expected second-half inflection.

ZeroFlap Optics represents another important opportunity. Management noted that production shipments are underway, and it expects additional fiscal 2027 customer ramps across both 800-gig and 1.6T products involving hyperscalers and Neocloud operators.

The retimer business is another lucrative opportunity. Management noted that the retimer business also delivered record quarterly revenues, supported by scale-up deployments of Screaming Eagle at 100-gig-per-lane and initial contributions from its 200-gig-per-lane Blue Heron retimer. Longer-term opportunities include Active LED Cables and OmniConnect. Credo continues to expect initial ALC revenues in fiscal 2028. Further, management added that OmniConnect could represent “thousands of dollars of Credo content per GPU”, with revenues also expected to begin in fiscal 2028.

CRDO is also witnessing increasing operating leverage. Non-GAAP operating income rose to $230.6 million from $96.2 million in the year-ago quarter, producing a non-GAAP operating margin of 48.2%. Non-GAAP net income margin reached 49.3% in the fiscal first quarter, compared with 44.1% in the year-ago quarter, underscoring the company’s ability to convert top-line growth into bottom-line profitability. Non-GAAP earnings per share came in at $1.20, up 130.8%.

CRDO's growth does not come without meaningful risks. In the fiscal first quarter, four customers generated roughly 84% of quarterly revenues. Customer concentration is a major concern as it exposes the company to shifts in customer spending decisions and could materially affect results.

Execution risk is another risk factor. Much of the expected growth in fiscal 2027 is dependent on a successful ramp in the optical business. Any delay in deployment or broader industry transitions could affect this ramp. Macroeconomic uncertainties and exposure to the AI investment cycle amid increasing market competition remain added concerns.

Broadcom: Massive ScaleBroadcom is a giant in the semiconductor space, with deep integration across AI infrastructure. Its semiconductor business is now the dominant growth engine. Third-quarter fiscal 2026 revenues surged 85.5% year over year to $29.59 billion, while AI semiconductor revenues grew 221% and up 54% sequentially to $16.7 billion. AI represented 56% of total company revenues compared with 49% in the previous quarter.

The company highlighted the increasing adoption of its custom accelerators (XPUs) across its six XPU customers. XPU shipments grew more than 3.5 times year on year and represented 73% of AI revenues. AI networking revenues also increased more than 2.5 times year over year. Custom accelerators and networking provide Broadcom with exposure to multiple layers of AI infrastructure spending rather than relying on a single category.

AVGO expects fiscal 2026 AI semiconductor revenues of about $58 billion, up 186% year over year and approximately $115 billion in fiscal 2027. Broadcom further sees AI semiconductor revenues doubling again to roughly $230 billion in fiscal 2028. Alongside custom accelerators, networking is expected to remain a major growth engine, with management expecting AI networking revenues to grow at a pace similar to XPUs over the next few years.

Expanding engagements with major AI players, including Google, Meta, OpenAI and Anthropic, bode well.  Broadcom disclosed a recent long-term agreement with Google covering future generations of TPUs and AI networking. Under this agreement, AVGO is to supply “multi-tens of billions of dollars” of TPUs annually over the next several years, with increasing demand expected in fiscal 2028 and 2029.

Furthermore, the Anthropic opportunity is set to scale dramatically. The company is deploying 1 gigawatt of Ironwood during fiscal 2026, expects another 5 gigawatts of TPU v8i in fiscal 2027, and has line of sight to an incremental 10 gigawatts in fiscal 2028. Management expects Anthropic to become Broadcom's largest XPU customer in fiscal 2027 and remain its largest in fiscal 2028.

Broadcom began to ship OpenAI’s first-generation Jalapeno custom accelerator in the fiscal third quarter. Jalapeno is expected to support a planned 1.3-gigawatt deployment in fiscal 2027, while Broadcom has line of sight to more than 5 gigawatts in fiscal 2028 involving Jalapeno and its successor.

Profitability is also improving. Non-GAAP operating income grew 92% to $20.1 billion in the last reported quarter, while non-GAAP operating margin expanded 240 basis points year over year to 67.9%. Free cash flow reached $13.7 billion, equal to 46% of revenues, while cash and cash equivalents were approximately $24 billion at the quarter-end. This gives Broadcom considerable flexibility to simultaneously invest in semiconductor capacity, service debt, pay dividends and potentially repurchase shares. Broadcom repaid $5.6 billion of long-term debt in the fiscal third quarter and another $1.5 billion after quarter-end.

Despite debt repayment, AVGO still has $57.2 billion in long-term debt at the end of the quarter. Consolidated gross margins continue to be influenced by the revenue mix between infrastructure software and AI semiconductor revenues. Fiscal fourth-quarter gross margin is expected to fall further to approximately 73% from 78% a year earlier as XPU mix and memory content increase.

Increasing expenses and dependence on a concentrated group of hyperscalers are additional concerns amid increasing competition in the semiconductor industry.

Price Performance & Valuations of CRDO & AVGOYear to date, CRDO is up 4.3%, while AVGO is down 0.2%.

Image Source: Zacks Investment Research

In terms of the forward 12-month price/sales multiple, Credo is trading at 9.5X, lower than AVGO's 9.93X.

Image Source: Zacks Investment Research

How Do the Consensus Estimates Compare for CRDO & AVGO?Analysts have revised their earnings estimates up 4.2% for CRDO for the current fiscal year in the past 60 days.

Image Source: Zacks Investment Research

Estimates have been marginally revised upward for AVGO's bottom line.

Image Source: Zacks Investment Research

CRDO or AVGO: Which Is a Better PickBoth CRDO and AVGO carry a Zacks Rank #3 (Hold).

While AVGO offers scale and diversification, CRDO provides stronger growth momentum and greater upside from emerging connectivity opportunities.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Credo just posted triple-digit revenue growth and its eighth straight earnings beat, then watched shares crater nearly 19%. Before you write off the damage, consider what analysts say happens next.

Credo (NASDAQ:CRDO | CRDO Price Prediction) just delivered one of the cleanest AI infrastructure earnings reports of the cycle, then watched its stock get taken apart. Revenue of $479 million grew 114.73% year over year, the eighth straight EPS beat landed, and management guided Q2 to $525 million to $535 million. Shares still fell 18.82% over the past week.

CEO Bill Brennan told investors Credo’s portfolio now spans connectivity “from millimeters to kilometers, with solutions across optics and copper.” So the question I want to answer: can Credo actually reach $300 per share by 2027?

Why Credo Shares Cratered After a Blockbuster Beat Let me be blunt. This selloff is about positioning and expectations. Credo entered earnings after a monster run, with the stock printing $308.67 at its 52-week high and trading near $249.89 a month ago. The revenue beat of 1.83% was tight versus prior blowouts like Q2 FY26’s 14.06% topline surprise, and buyside models had already priced in a bigger number.

As Barron’s noted, the stock plunged despite the beat as analysts weighed in. Add a beta of 3.228, and any expectations reset gets amplified. Shares are still up 16.58% year to date and 13.71% over one year. The panic looks like profit-taking.

Wall Street Sees 68% Upside. My Case Goes Higher The Street consensus price target sits at $281.39, implying roughly 68% upside from here. Coverage skews aggressively bullish: 4 Strong Buy, 14 Buy, and 1 Hold, with zero sells and analyst sentiment logging 95% bullish.

Our internal model is more measured, pegging a base case of $205.52 with high confidence at 0.9, an optimistic path to $332.48, and a conservative floor at $167.21.

I think the base case is too cautious. Forward EPS estimates for fiscal 2028 have been revised from $8.6228 ninety days ago to $9.6260 today. That is not a company decelerating.

Path to $300 Per Share Reaching $300 from today’s price of $167.75 would require a gain of 78.8%. With forward EPS of $4.31, a price of $300 implies a forward P/E of 70x. Our base case of $205.52 already implies 41x, meaning $300 requires roughly 29x of additional multiple expansion. That sounds steep until you look at the growth.

Management guided fiscal 2027 revenue growth of more than 85% year over year, with optical alone expected to top $600 million. The 247Factor adjustment of 1.179 reflects sector momentum of 1.15 and 95% bullish analyst consensus.

Brennan called fiscal 2027 “just a stepping stone” for the optical business, with Active LED Cables framed as a “big multi-billion dollar opportunity.” If FY28 EPS lands near $9.626, $300 collapses to roughly 31x forward, entirely reasonable for a company doubling revenue. Customer concentration remains the single biggest risk, with the top customer at 33% of Q1 revenue.

Where Credo Trades vs Its Earnings Power At $167.75, Credo trades at roughly 39x forward EPS of $4.31. That looks expensive on the surface. It looks a lot cheaper when you overlay 205.68% full-year revenue growth in fiscal 2026 and forward EPS revisions moving up, not down.

Shares sit well off the 52-week high of $308.67 and comfortably above the low of $86.48. The five-year return of 1339.91% tells you what happens when the market finally recognizes AI infrastructure exposure. This dip creates the entry point.

Is $300 Realistic? My Verdict Reaching $300 requires a 78.8% gain from here, and I think it is achievable, though not automatic. Three things need to go right. First, Credo must execute on the optical ramp, particularly 1.6T DSP revenue landing later in fiscal 2027.

Second, forward EPS estimates need to keep drifting higher toward $9.6260 for fiscal 2028.

Third, the market has to reward the vertically integrated story with a growth multiple rather than a cyclical one. Credo sits inside the same picks-and-shovels bucket we mapped out in a free report on seven AI infrastructure names beyond the chipmakers.

What derails it? A hyperscaler pause or a loss of share at the top customer. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Credo could reach $300 in 2027.

Contact [email protected] for any questions or corrections.

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Marvell (MRVL) relative long

Buy MRVL vs CRDO. Both are AI connectivity plays, but CRDO’s valuation is the bigger problem (much higher forward P/E). If the group de-rates, the higher-multiple name falls harder; MRVL should hold up better on a relative basis while still benefiting from AI infrastructure spend.

Key Risk: MRVL’s own results/guidance disappoint or its AI connectivity share gains stall, causing both names to fall together.

CRDO short

Sell short CRDO. Even with strong QoQ growth and higher GAAP gross margin, the market is punishing valuation: forward GAAP P/E ~45 vs sector ~29. The chart confirms momentum is bearish (below 50% Fib, 50/100-day EMAs, double-top-like reversal). Target ~$171 (61.8% Fib) and cover into any bounce.

Key Risk: AI/data-center demand stays so strong that guidance and margins re-accelerate enough to justify the premium multiple, forcing a valuation-driven squeeze higher.

Credo Technology Group stock continued its strong freefall, even after the company published encouraging financial results. CRDO dropped by over 9% in the premarket session, reaching its lowest level since July 30th. It has now remained deep inside a bear market after falling by nearly 40% from its highest level this year.

CRDO stock has slumped substantially in the past few months, moving from the year-to-date high of $308.30 to $192 today. This retreat happened even as the company continues growing, thanks to the soaring demand for its products and services. 

For starters, Credo Technology Group designs high-speed connectivity chips and cables that are mostly used in AI data centers, cloud infrastructure, and networking equipment. These products allow processors to communicate with each other quickly and efficiently. It competes with companies like Marvell Technology, Broadcom, and Astera Labs.

Credo released its earnings report on Tuesday, providing more insights about its business, which continued to see more demand. Its revenue jumped by 9.6% QoQ to $479 million. This increase was about 114.7% higher than what it made in the same period last year.

The company’s GAAP gross margin rose to 64.5%, while its GAAP net income rose to $129.4 million. While its net income rose sharply from $64 million in the same period last year, it was down from the $169 million it made in fourth quarter of fiscal year 2026. In a statement, Bill Brennan, the CEO said: 

“Our portfolio now spans connectivity from millimeters to kilometers, with solutions across optics and copper. As AI infrastructure scales, we will continue to provide an innovative suite of reliable and energy-efficient connectivity solutions for the data center.”

Credo expects that its revenue growth will continue as the data center buildup continues in the US and other countries. Indeed, most of its customers, including firms like Amazon, Microsoft, and SpaceX have all pledged to boost their data center spending. In total, data center spending is expected to be over $1 trillion this year. 

A major issue is that Credo is a highly overvalued, with the forward price-to-earnings ratio on a GAAP basis rising to 45, much higher than the technolgy sector median of 29. It is also significantly higher than other top companies like Dell and Nvidia. 

CRDO stock chart | Source: TradingView

Technicals suggest that the CRDO stock may have a strong downward trend in the near term. It has dropped from a high of $308.30 in June to the current $191. 

This retreat, which is in line with our prediction, happened after it formed a double-top-like pattern, a common bearish reversal pattern in technical analysis. It has now moved below the 50% Fibonacci Retracement level.

The stock has dived below the 50-day and 100-day Exponential Moving Average (EMA), a sign that bears are in control for now. This retreat may continue in the near term, potentially to the 61.8% retracement level at $171. 

Credo Technology Group Holding Ltd. (CRDO - Free Report) came out with quarterly earnings of $1.2 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +2.56%. A quarter ago, it was expected that this company would post earnings of $1.03 per share when it actually produced earnings of $1.16, delivering a surprise of +12.62%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Credo Technology Group, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $479 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.69%. This compares to year-ago revenues of $223.07 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Credo Technology Group shares have added about 57.2% since the beginning of the year versus the S&P 500's gain of 12.3%.

What's Next for Credo Technology Group?While Credo Technology Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Credo Technology Group was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.25 on $502.69 million in revenues for the coming quarter and $6.02 on $2.35 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Ambarella (AMBA - Free Report) , another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 3.

This video-compression chipmaker is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +6.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Ambarella's revenues are expected to be $108.03 million, up 13.1% from the year-ago quarter.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares are in the spotlight Tuesday, with earnings on deck today, key growth metrics in focus, a technical setup showing a cooling trend and Edge Rankings all drawing attention.

Credo shares are retreating from recent levels. Why is CRDO stock falling? Earnings Preview & HistoryCredo is scheduled to report first-quarter fiscal-year 2027 earnings today after market close. Analysts estimate EPS of $1.17 along with revenue of $471.77 million. For the prior quarter, Credo reported EPS of $1.16, beating the consensus estimate of $1.03. The company also posted revenue of $437.00 million, exceeding consensus expectations of $432.05 million.

What to Watch: Credo’s $600M Optical Targets, Hyperscaler MixInvestors will be closely tracking progress toward Credo’s optical revenue targets, with management projecting more than $600 million for fiscal 2027, split roughly evenly across ZeroFlap optics, silicon photonics, and optical DSPs, though the most significant acceleration isn’t expected until the second half of the year. Hyperscaler customer concentration will also be in focus, since four hyperscalers each contributed more than 10% of total revenue last quarter, alongside continued momentum in Credo’s active electrical cable and retimer products, including its Blue Heron 200-gig-per-lane offering.

Gross and operating margin trends should draw additional attention, given last quarter’s non-GAAP gross margin of 68.3% and operating margin of 49.6%, along with any commentary on the integration of Credo’s recently completed DustPhotonics acquisition.

A Cooling Trend Meets a “Hold or Fail” DecisionCredo is trading about 10.8% below its 20-day SMA ($240.06) and about 9.5% below its 50-day SMA ($236.55), which tells you the near-term trend has cooled and rallies are meeting supply sooner. It’s also about 2.2% below the 100-day SMA ($218.89), putting the stock right around an area where trend followers often look for a "hold or fail" decision.

Momentum-wise, MACD is below its signal line and the histogram is negative, which points to fading upside pressure versus the prior upswing. In plain terms, when MACD sits under the signal line, it often means buyers need a fresh push to regain control rather than relying on the prior trend.

The bigger-picture trend is still constructive: the stock remains about 22.3% above its 200-day SMA ($175.05), and the 50-day SMA is still above the 200-day SMA (the golden cross that occurred in May). Key levels traders tend to watch here include:

Key Support: $211.50 — a nearby level where buyers previously stepped in, close to current price and a logical spot for dip-buyers to defend

Key Resistance: $241.00 — a nearby rebound-stall zone that lines up closely with the 50-day/20-day moving-average area overhead

Benzinga Edge RankingsBelow is the Benzinga Edge scorecard for Credo Technology Group Holding Ltd Ordinary Shares, highlighting its strengths and weaknesses compared to the broader market:

Momentum: Bullish (Score: 95.83) — Even with today’s drop, the longer trend has been strong versus the broader market. Value: Weak (Score: 4.58) — The stock screens as expensive, which can make pullbacks sharper when sentiment cools. Growth: Bullish (Score: 99.69) — The market is still treating CRDO as a top-tier growth story, which supports upside when risk appetite returns. The Verdict: Credo Technology Group Holding Ltd Ordinary Shares’s Benzinga Edge signal reveals a classic High-Flyer setup—elite Growth and Momentum paired with a very weak Value score. That mix can work well in uptrends, but it also means the stock may stay volatile when Technology is the market’s weakest pocket.

Read Next

Credo Shares DropCRDO Price Action: At the time of publication, Credo shares are trading 5.07% lower at $214.72, according to data from Benzinga Pro.

Image via Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Credo Technology exploded from double digits to over $300 in a single year, but the setup heading into fiscal 2027 is a fundamentally different bet, and the math behind our price target reveals exactly where the risk-reward gets interesting again.

Credo Technology has been one of the most explosive AI infrastructure stories of the past year, but the setup heading into fiscal 2027 is a different animal from the one that carried shares from double digits to over $300. With the model now pointing to modest upside and volatility running hot, I want to lay out our 24/7 Wall St. price target and walk through the math.

Credo (NASDAQ:CRDO | CRDO Price Prediction) trades at $224.63 as of midday Tuesday. Our 24/7 Wall St. price target for Credo is $234.55, implying roughly 4.58% upside over the next 12 months. We rate the stock a hold with 90% confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $224.63 24/7 Wall St. Price Target $234.55 Upside 4.58% Recommendation HOLD Confidence Level 90% A Wild Year, and a Sharp Week Credo has been a monster. Shares are up 95.2% over the past year and 54.71% year to date, sitting just off a 52-week high of $308.67. The past week told a different story, with the stock down 21.29% from $282.82 as the group digested a torrid run.

Fundamentals remain excellent: fourth-quarter revenue hit $437 million, up 157% year over year, and non-GAAP EPS of $1.16 beat consensus by 12.17%, the fourth consecutive beat. Full-year FY2026 revenue more than tripled to $1.3 billion.

Why Bulls See a Breakout to $330 Plus Management guided FY2027 revenue growth of more than 80% year over year, anchored by more than $600 million of optical revenue with ZeroFlap optics, silicon photonics PICs, and optical DSPs each expected to top $100 million.

The Dust Photonics acquisition adds an 800 gig and 1.6T roadmap, and NeoCloud operators could eventually represent on the order of 20% of revenue. Wall Street consensus target sits at $283.23 with 18 Buy or Strong Buy ratings, and our bull case scenario reaches $334.01.

Risks Worth Watching Customer concentration is the elephant in the room: the top customer alone represented 34% of Q4 revenue, and four customers each topped 10%. Inventory rose to $250.8 million, and gross margin faces optical ramp pressure.

Bulls counter that margins have proved resilient: Q4 non-GAAP gross margin actually expanded to 68.3% versus the year prior. Trailing P/E of 92 also leaves little cushion. Our bear scenario targets $187.53.

How Credo Compares to Astera Labs and Marvell Astera Labs (NASDAQ:ALAB) is the closest pure-play comp, competing directly for hyperscaler connectivity dollars with its Scorpio fabric switches and Aries retimers. ALAB competes for the same hyperscaler connectivity dollars and carries a premium multiple as a high-growth pure-play. On that yardstick, Credo’s forward P/E near 39 starts to look reasonable.

Marvell Technology (NASDAQ:MRVL) is the scaled incumbent in custom AI silicon and 800G/1.6T optics. Marvell’s slower growth profile at a much larger revenue base frames Credo as the higher-torque story, which supports our target sitting above the current price but well below the Street’s $283.

Where the Risk-Reward Sits Now Our 24/7 Wall St. price target of $234.55 and hold rating reflect a great business at a fair price after an extraordinary run. The low $200s is where the risk-reward improves materially on a pullback.

Execution risk rises if the optical ramp slips or the top customer’s mix expands further. Credo is a long-term winner, and spotting the next one early tends to follow a pattern we mapped out in a free playbook on the traits behind past 100x tech runs. The entry point matters.

Credo Price Prediction 2026 to 2030 Year 24/7 Wall St. Price Target 2026 $234.55 2027 $236.84 2028 $234.42 2029 $268.81 2030 $263.80 These projections assume Credo executes on its optical inflection and NeoCloud ramp. Meaningful upside or downside will hinge on the pace of 200G-per-lane and 1.6T adoption.

Contact [email protected] for any questions or corrections.

Key Takeaways Credo expects fiscal 2027 revenue to grow more than 80%, with acceleration starting in the second half.Optical revenue is expected to top $600 million, with key products each contributing more than $100 million.Credo plans to boost R&D spending while keeping non-GAAP net margins near 50%. Credo Technology Group Holding Ltd (CRDO - Free Report) has entered fiscal 2027 with strong revenue momentum and a continued focus on investing in new product development. In fiscal 2026, revenue reached a record $1.3 billion, up 206% year over year, while gross margin increased 310 basis points to 68.1%. The company also delivered significant operating leverage, with operating margin improving 21.44% as operating expenses rose considerably more slowly than revenue. In the fourth quarter, non-GAAP gross margin was 68.3%, while non-GAAP operating margin totaled 49.6% and non-GAAP net margin reached 51.9%.

For fiscal 2027, Credo expects to maintain its strong margin profile even as it increases investment in research and development. Management expects non-GAAP gross margin to remain broadly consistent with fiscal 2026 levels. At the same time, non-GAAP operating expenses are expected to increase approximately 50% year over year, well below the expected revenue growth rate, as the company continues investing in R&D to support new product development and address growth opportunities. As a result, Credo expects its non-GAAP net margin to remain in the vicinity of 50%.

Credo expects fiscal 2027 revenue to grow more than 80% year over year, with mid-single-digit sequential growth in the first half and an inflection beginning in the second half. This acceleration is expected to be supported by more than $600 million in optical revenue, with ZeroFlap optics, silicon photonics PICs and optical DSPs each expected to contribute more than $100 million. On the last earnings call, management stated that about half of the expected absolute dollar revenue growth in fiscal 2027 should come from the optical portfolio and about half from the existing copper portfolio, predominantly AECs and retimers.

The near-term outlook also points to continued strong profitability. For the first quarter of fiscal 2027, Credo expects revenue between $465 million and $475 million, non-GAAP gross margin of 67% to 69%, and non-GAAP operating expenses of $86 million to $90 million. With revenue growth expected to remain substantially ahead of operating expense growth, the company expects to continue supporting higher R&D investment while maintaining non-GAAP net margins near 50%.

Taking a Look at CRDO’s CompetitorsBroadcom (AVGO - Free Report) continues to benefit from strong AI semiconductor demand and operating leverage, supporting its margin profile. In the second quarter of fiscal 2026, free cash flow reached $10.26 billion, representing 46% of revenues, while cash flow from operations was $10.49 billion. However, the company operates in highly competitive markets where pricing pressure can weigh on margins, while higher integration costs, acquisition complexity and elevated commitments could also create profitability risks. Broadcom’s infrastructure software business continues to provide support, with second-quarter revenue increasing 9% year over year to $7.18 billion and annual recurring revenue rising 17%. Management expects infrastructure software revenue of approximately $8.9 billion in the third quarter, up 31% year over year. Strong AI demand and recurring software revenue support Broadcom’s margin profile, although competition and execution risks remain important constraints.

Marvell Technology’s (MRVL - Free Report) margin profile remains supported by strong AI-driven growth and operating discipline. In the first quarter of fiscal 2027, non-GAAP gross margin was 58.9%, slightly below 59% in the fourth quarter, while non-GAAP operating margin was 35% compared with 35.7% previously. As custom silicon, interconnect and optics businesses scale, strong data center growth could support operating leverage. However, profitability remains sensitive to product mix, competitive pricing and ramp-related costs. Marvell’s restructuring efforts are expected to support cost discipline, while its fabless model helps maintain capital efficiency. Overall, AI-driven growth provides margin support, although mix shifts and pricing pressure could create volatility.

CRDO’s Price Performance, Valuation and EstimatesShares of CRDO have gained 22.6% compared with the Electronics-Semiconductors industry’s growth of 5.4% in the past month.

Image Source: Zacks Investment Research

In terms of the forward 12-month price/sales ratio, CRDO is trading at 18.09, higher than the industry’s multiple of 5.36.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CRDO’s earnings for fiscal 2027 has been revised marginally upward over the past 60 days.

Image Source: Zacks Investment Research

CRDO currently sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Key Takeaways CRDO sees AEC demand, silicon photonics and hyperscaler traction driving fiscal 2027 growth.LITE expects higher revenues, 1.6T transceiver ramp and internal CW laser integration to boost results.CRDO and LITE both have analyst price targets implying notable upside from recent closing prices. Optical and photonics products are in tremendous demand for serving global cloud and artificial intelligence (AI)/machine learning (ML) infrastructure. They are the latest bestsellers in the AI infrastructure space.

Large AI models require millions of graphical processing units (GPUs) working in tandem. As a result, the ecosystem witnesses massive growth in data throughput (as high as 400 Gbps and 800 Gbps). The traditional copper wiring is unable to carry these extremely high-speed data packets properly, as it generates excessive heat slowing down the entire AI compute cluster. 

The photonics technology solves this problem transmitting data at the speed of light through a fiber optic network. Photonics enables high-speed, low-latency, and energy-efficient data transfer without overheating.

Here, we recommend investors buy these two photonics developers with a favorable Zacks Rank that are flying high year to date. Industry-leading products of these companies and the unstoppable growth of AI-powered data centers make these stocks attractive investment opportunities for the long term.

The stocks are: Credo Technology Group Holding Ltd. (CRDO - Free Report) and Lumentum Holdings Inc. (LITE - Free Report) . Each of our picks carries a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our two picks year to date.

Image Source: Zacks Investment Research

Credo Technology Group Holding Ltd.Credo Technology is a provider of high-performance serial connectivity solutions for the hyperscale datacenter, 5G carrier, enterprise networking, artificial intelligence and high-performance computing markets.

CRDO’s outlook is supported by widening AEC adoption, rising hyperscaler and Neo cloud traction, and a larger optical portfolio that now includes silicon photonics PIC technology following the DustPhotonics acquisition. AECs remain the primary growth engine as they play an increasingly critical role in AI-driven networking deployments.

ZF Optics is moving from initial ramp to a broader fiscal 2027 revenue contributor. The acquisition of Dust Photonics strengthens CRDO’s high-speed optical connectivity portfolio with silicon photonics PIC technology. 

The deal adds advanced technology, including 800G and 1.6T solutions, and would aid in developing upcoming 3.2T solutions. CRDO projects more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million in fiscal 2027.

Strong OutlookFor the first quarter of fiscal 2027, Credo expects revenues of $465-$475 million. Non-GAAP gross margin is projected between 67% and 69%, while non-GAAP operating expenses are expected in the range of $86-$90 million.

For fiscal 2027, management expects more than 80% year-over-year revenue growth. The company anticipates non-GAAP gross margin to remain broadly consistent with fiscal 2026 levels and non-GAAP operating expenses to rise approximately 50%, well below the expected revenue growth rate.

Four hyperscalers each contributed 10% or more of total revenues in the last reported quarter, with the top three customers representing 34%, 27% and 16% of revenues. Beyond the traditional hyperscalers, management is also seeing increasing demand from emerging Neocloud providers. Credo continues to expect that three to four customers will account for more than 10% of revenues in the upcoming quarters.

Solid Estimate RevisionsFor fiscal 2027 (ending April 2027), the Zacks Consensus Estimate currently shows revenues of $2.35 billion, suggesting an improvement of 75.8% year over year and earnings per share of $5.98, indicating an increase of 72.8% year over year. The Zacks Consensus Estimate for the current year has improved 7% in the last 60 days.

For fiscal 2028, the Zacks Consensus Estimate currently shows revenues of $3.46 billion, suggesting an improvement of 47.2% year over year and earnings per share of $8.58, indicating an increase of 43.6% year over year. The Zacks Consensus Estimate for the current year has improved 6.1% in the last 60 days.

Image Source: Zacks Investment Research

Impressive Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 19.8% from the last closing price of $237.92. The brokerage target price is currently in the range of $215-$350. This indicates a maximum upside of 47.1% and a downside of 9.6%.

Lumentum Holdings Inc.Lumentum Holdings designs and manufactures optical and photonic technologies for high-speed telecommunications, data centers, and advanced manufacturing. LITE provides components, such as transceivers and lasers for fiber-optic networks, supporting the rapid growth of AI, cloud computing, 5G connectivity, and beyond.

LITE’s technology leadership in high-speed optical components has positioned it as an essential supplier to hyperscale customers deploying next-generation network architectures. Moreover, LITE has a strong collaboration with NVIDIA Corp. (NVDA) for developing NVDA’s silicon photonics ecosystem, especially for deploying the latter’s Spectrum-X Photonics networking switches.

Strong OutlookFor the fourth quarter of fiscal 2026, Lumentum expects revenues between $960 million and $1.01 billion. The company guided non-GAAP operating margin to 35-36% and non-GAAP earnings to $2.85-$3.05 per share, based on an effective tax rate assumption of 16.5% and approximately 102 million diluted shares.

Management said a meaningful driver of sequential growth is expected to be transceivers, with 1.6T shipments poised to ramp in the fiscal fourth quarter. LITE also expects further progress on integrating internal CW lasers into its module portfolio, with management indicating that roughly 20% of modules in the near-term mix could include its own CW lasers, alongside ongoing yield improvements and efforts to reduce scrap.

Solid Estimate RevisionsFor fiscal 2027 (ending June 2027), the Zacks Consensus Estimate currently shows revenues of $5.64 billion, suggesting an improvement of 88.4% year over year and earnings per share of $18.16, indicating an increase of 121.8% year over year. The Zacks Consensus Estimate for the current year has improved 2% in the last 30 days.

Image Source: Zacks Investment Research

Huge Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 30.8% from the last closing price of $849.47. The brokerage target price is currently in the range of $800-$1,400. This indicates a maximum upside of 64.8% and a downside of 5.8%.

Key Takeaways Credo's fiscal fourth-quarter free cash flow rose to $177.5 million on $182.2 million in operating cash flow.CRDO ended the quarter with $1.4 billion in cash, supporting product innovation and accretive acquisitions.Credo is investing in AECs, ZeroFlap Optics, ALCs and OmniConnect to capture AI connectivity demand. Credo Technology Group Holding Ltd (CRDO - Free Report) posted a strong finish to fiscal 2026, delivering solid free cash flow in the fiscal fourth quarter, underscoring strengthening profitability amid explosive demand for AI infrastructure.

In the fiscal fourth quarter, cash flow from operations reached $182.2 million, increasing $16 million sequentially. With capital expenditures of just $4.8 million, free cash flow climbed to $177.5 million. The company ended the quarter with $1.4 billion in cash and equivalents, driven primarily by robust free cash flow generation.

This strong cash position provides Credo with ample financial flexibility to invest in product innovation and pursue accretive M&A. In the recent earnings call, the company noted that it remains “well capitalized” to fuel the next leg of growth, while maintaining a considerable cash buffer.     

Credo is deploying its capital strategically. Management noted that the Dust Photonics acquisition, which closed in the first quarter of fiscal 2027, utilized approximately $750 million. Despite this sizable outflow, the company expects to remain in a comfortable liquidity position, supported by operating cash flow approaching $200 million per quarter.

Further, Credo added that it may pursue opportunistic acquisitions, but has no such immediate plans. The company also has no plans to raise additional capital or authorize a share repurchase program currently.

As AI reshapes the data center architectures, it is accelerating demand for high-speed connectivity solutions. Credo lies at the intersection of AI and data center build-outs with its active electrical cables (AECs), optical Digital Signal Processors and PCIe retimers solutions that address the growing need for high-speed, low-power connectivity in the data center space.

Given this, the cash strength is strategically valuable as Credo deepens its role in the hyperscale ecosystem. The company continues to scale its AEC business while accelerating investments in newer growth areas such as ZeroFlap Optics, Active LED Cables (ALCs) and OmniConnect solutions.

How Are Competitors Faring?Although Credo has tremendous opportunities, these are unfolding in a fiercely competitive landscape. Bigger rivals like Broadcom (AVGO - Free Report) and Marvell Technology (MRVL - Free Report) , with their relatively stronger financial positions, offer some serious competition to Credo.

Broadcom is one of the giants in the semiconductor space. In the last reported quarter, free cash flow was a massive $10.3 billion (about 46% of revenues) while capex came in at $231 million. As a result, the company had about $19.6 billion of cash and cash equivalents on its balance sheet at the quarter-end.

The company sees massive opportunities in the AI space, as its hyperscaler customers have begun developing their own custom accelerators or XPUs. Broadcom is building custom silicon platforms and enabling massive compute deployments for leading hyperscalers such as Meta, as well as AI companies like Anthropic and OpenAI. AI semiconductor revenues are expected to reach $16 billion in the third quarter of fiscal 2026, up more than 200% year over year.

Strong cash position provides ample flexibility to pursue these opportunities. However, Broadcom’s acquisition-driven growth strategy (mainly the VMware acquisition) had led to a hefty debt on its balance sheet. Long-term debt was nearly $62.7 billion at the end of the last reported quarter.

Marvell Technology has been in the spotlight for some time now, especially after NVIDIA's chief publicly called it the next trillion-dollar company earlier this year. The company is now a component of the S&P 500 index. Marvell Technology’s strategic pivot to prioritize the data center market is proving to be a successful catalyst amid surging AI infrastructure spending.

The company is using its cash pile to capture AI-driven opportunities in cloud and data center infrastructure through R&D investment as well as strategic acquisitions like XConn Technologies and Celestial AI. It had $3.84 billion in cash and cash equivalents at the end of the last reported quarter. Cash flow from operations for the first quarter of fiscal 2027 was $638.8 million.

Like AVGO, Marvell Technology also has a highly leveraged balance sheet with a long-term debt of $4.96 billion as of May 2, 2026.

CRDO’s Price Performance, Valuation and EstimatesShares of CRDO have lost 23.5% compared with the Electronics-Semiconductors industry’s decline of 17.2% in the past month.

Image Source: Zacks Investment Research

In terms of the forward 12-month price/sales ratio, CRDO is trading at 15.01, higher than the Electronic-Semiconductors industry’s multiple of 8.39.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CRDO’s earnings for fiscal 2027 has been revised upward over the past 60 days.

Image Source: Zacks Investment Research

CRDO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Credo's fiscal 2026 revenue more than tripled to over $1.3 billion on AI demand.CRDO expects fiscal 2027 revenue growth above 80%, supported by its expanding optical portfolio ramp.Credo cited customer concentration and supply chain constraints as key risks. Credo Technology Group Holding Ltd’s (CRDO - Free Report) shares have appreciated 165.1% over the past year, outperforming the Zacks Electronics – Semiconductors industry’s growth of 76.2%. The Zacks Computer and Technology sector and the S&P 500 composite have registered growth of 35.2% and 24.7%, respectively, over the same time frame.

The stock has outperformed Broadcom (AVGO - Free Report) , which gained 42.1% during the same period. However, Marvell Technology (MRVL - Free Report) and Astera Labs (ALAB - Free Report) have outperformed CRDO, with their shares appreciating 216.7% and 305.3%, respectively, over the past year.

Image Source: Zacks Investment Research

Let us take a closer look at CRDO’s fundamentals, key growth drivers, competitive strengths and potential risks to determine whether the stock remains an attractive investment.

Factors to ConsiderCredo is benefiting from the rapid expansion of AI infrastructure, which continues to drive strong demand for its high-speed connectivity solutions. Fiscal 2026 was another transformative year for the company, with revenue surpassing $1.3 billion, more than tripling year over year. Non-GAAP net income increased more than fivefold to $662 million, reflecting strong execution, product leadership and healthy margins. In the fiscal fourth quarter, revenue reached a record $437 million, exceeding the company's entire fiscal 2025 revenue, while non-GAAP gross margin remained strong at 68.3%. Management attributed this performance to Credo's ability to capitalize on the increasing importance of reliable, power-efficient connectivity as AI clusters continue to expand.

The company continues to strengthen its competitive position through a comprehensive connectivity portfolio designed for AI infrastructure. Its strategy spans die-to-die, chip-to-chip, multi-rack copper and facility-wide optical interconnect solutions, enabling it to address connectivity needs across the entire AI data center. Management stated that hyperscalers and Neo cloud providers increasingly seek partners capable of delivering multiple generations of connectivity products with deep system-level integration. Credo believes its vertically integrated approach, covering SerDes technology, silicon, firmware, telemetry software and system-level solutions, differentiates it from competitors and positions it as a long-term network architecture partner.

Credo's Active Electrical Cable (AEC) business remains a major growth driver. As AI clusters become larger and more complex, customers are increasingly prioritizing network reliability and power efficiency. Management noted that its ZeroFlap AECs provide significantly higher reliability than conventional laser-based optical modules while consuming less power, making them well-suited for in-rack and multi-rack deployments. The company continues to experience strong adoption among hyperscale and Neo cloud customers for both 100-gig and emerging 200-gig-per-lane deployments. It also remains on track with its PCIe Gen 6 AEC family, where customer engagement and design activity continue to expand.

The optical business is expected to become another significant growth engine. Management believes fiscal 2027 will represent an inflection point as demand increases for optical DSPs, silicon photonics and ZeroFlap optics. The recently completed acquisition of Dust Photonics expands Credo's capabilities with silicon photonics technology, strengthening its portfolio across 800G and 1.6T solutions while providing a roadmap to higher-speed products. The company expects its optical DSPs, silicon photonics PICs and ZeroFlap optics to each generate more than $100 million in fiscal 2027 revenue, with the combined optical portfolio expected to contribute more than $600 million. Management believes this portfolio will support sustained long-term growth.

Beyond its core businesses, Credo continues to advance several emerging growth opportunities. The company is developing Active Light Cable (ALC) solutions that extend the reliability and power advantages of AECs into longer-distance optical connectivity using MicroLED technology. It is also expanding its OmniConnect portfolio, including its Weaver gearbox solution, to address increasing memory bandwidth and density requirements for next-generation AI inference architectures. Customer engagement remains strong, and management expects production ramps for both ALC and OmniConnect solutions to begin in fiscal 2028, adding new long-term growth drivers.

Image Source: Zacks Investment Research

The company's financial outlook remains bright, supported by continued AI-driven demand. For fiscal 2027, Credo expects revenue growth of more than 80% year over year, with the second half benefiting from the ramp of its optical portfolio. Management anticipates non-GAAP gross margin to remain broadly consistent with fiscal 2026 levels while maintaining a non-GAAP net margin near 50%. The company also generated record operating cash flow and free cash flow during the fiscal fourth quarter, ending the year with approximately $1.4 billion in cash and cash equivalents, providing ample financial flexibility to invest in future growth opportunities.

However, Credo continues to face customer concentration and supply chain-related risks. During the fourth quarter of 2026, four customers each accounted for more than 10% of revenue, with the largest customer contributing 34%, highlighting continued dependence on a limited number of large customers despite ongoing diversification efforts. Management also acknowledged that the supply chain remains tight across the industry and noted that current fiscal 2027 guidance is based on the existing tariff environment, which remains subject to change.

A Look at CRDO’s ValuationThe stock trades at a forward 12-month price-to-sales (P/S) ratio of 18.84, above the industry’s average of 9.04. AVGO, MRVL and ALAB trade at a forward 12-month P/S of 12.25X, 14.73X and 36.42X, respectively.

Image Source: Zacks Investment Research

CRDO’s Upward EstimatesThe Zacks Consensus Estimate for CRDO’s earnings for fiscal 2026 has been significantly revised upward over the past 60 days.

Image Source: Zacks Investment Research

What Should You Do With CRDO Stock Now?Sporting a Zacks Rank #1 (Strong Buy), Credo appears to be a compelling investment opportunity at the moment.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Credo expects AECs to remain a key growth driver as AI clusters demand reliable, power-efficient connectivity.CRDO says ZeroFlap AECs offer up to 1,000x greater reliability while using significantly less power.Credo expects over 80% fiscal 2027 revenue growth, with AECs supporting its copper portfolio expansion. Credo Technology Group Holding Ltd (CRDO - Free Report) continues to see Active Electrical Cables (AECs) as one of its primary growth drivers, supported by increasing demand for reliable and power-efficient connectivity in AI infrastructure. The company highlighted that as AI clusters expand, reliability and power efficiency have become major design considerations. As a result, AECs have become the preferred choice for in-rack connectivity and many multi-rack deployments extending up to seven meters.

Credo also stated that its ZeroFlap AECs deliver up to 1,000 times greater reliability than conventional laser-based optical modules while consuming significantly less power. In environments where network downtime can delay AI deployments and increase costs, the company believes network reliability has become increasingly important.

Credo reported continued customer adoption of its AEC portfolio across hyperscale and Neo cloud operators for both 100-gigabit-per-lane deployments and emerging 200-gigabit-per-lane applications. The company’s vertically integrated approach, spanning core SerDes technology, silicon, system-level solutions, firmware and telemetry software, supports its position as connectivity speeds and AI cluster complexity continue to increase. It also remains on track with its PCIe Gen 6 AEC family, where customer engagement and design activity continue to strengthen.

On the last earnings call, management highlighted that growth in its existing copper portfolio, led primarily by AECs along with retimers, is expected to support first-half fiscal 2027 performance. The company also stated that approximately half of its projected fiscal 2027 revenue growth is expected to come from its optical portfolio, while the remaining half is anticipated to be driven by its existing copper portfolio, predominantly AECs. Management further stated that AEC adoption is expanding across both hyperscalers and Neo cloud customers, with additional opportunities to deepen deployments across customer networks. Credo expects AECs to remain an important long-term contributor to the company's growth.

For fiscal 2027, management expects more than 80% year-over-year revenue growth. Management anticipates more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million.

Taking a Look at CRDO’s CompetitorsBroadcom Corporation (AVGO - Free Report) is benefiting from rising AI semiconductor demand, led by custom XPUs and AI networking, while VMware continues to support infrastructure software growth. AI semiconductor revenues reached a record level in the fiscal second quarter, and management expects further growth in the fiscal third quarter, supported by multi-year commitments with core customers. Broadcom’s networking leadership, expanded XPU relationships and healthy free cash flow provide long-term growth support. Non-AI semiconductors are also showing signs of cyclical recovery. For the third quarter of fiscal 2026, Broadcom expects revenues of approximately $29.4 billion, indicating 84% year-over-year growth.

Marvell Technology (MRVL - Free Report) is benefiting from AI-led demand across the data center end market, with custom silicon, interconnect, switching and optics driving record revenues and a higher multi-year outlook. Management now expects about 40% revenue growth for fiscal 2027. The expanded NVIDIA partnership, including NVLink Fusion and optics collaboration, embeds Marvell deeper in hyperscaler roadmaps and supports program ramp. Recent acquisitions broaden scale-up capabilities. Communications and other areas are recovering as inventories normalize. Marvell expects fiscal 2027 revenues to grow about 40% year over year to nearly $11.5 billion and sees fiscal 2028 revenues rising about 45% to roughly $16.5 billion.

CRDO Price Performance, Valuation and EstimatesShares of CRDO are up 136.1% in the past three months compared with the Electronics-Semiconductors industry’s growth of 40.5%.

Image Source: Zacks Investment Research

Regarding the forward 12-month price/sales ratio, CRDO is trading at 17.75, higher than the industry’s multiple of 8.99.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has been revised up over the past 60 days.

Image Source: Zacks Investment Research

CRDO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

© Nikada / E+ via Getty Images

I am opening with our verdict on Credo Technology Group (NASDAQ:CRDO | CRDO Price Prediction). The stock has rallied 86.94% year to date, and our proprietary model now sees the shares trading almost exactly where they should.

The 24/7 Wall St. price target for Credo is $263.97, which sits a hair below the last close of $268.99. That implies 1.87% downside, a hold rating, and a 90% (high) confidence reading.

Metric Value Current Price $268.99 24/7 Wall St. Price Target $263.97 Upside/Downside -1.87% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong Our 24/7 Wall St. price target sits a touch below where Credo trades today, and that gap is small enough to flip. The bull catalysts are real: the just-closed Dust Photonics acquisition opens a silicon photonics path to 3.2 Tbps, and management is guiding to more than $600 million in optical revenue for fiscal 2027. Treat our target as one datapoint. A full bull case sits below.

From $79 to $269 in a Year Credo has been one of the AI infrastructure trade’s cleanest winners. The stock is up 192.63% over the past year, 23.16% over the past month, and 7.89% in the past week alone. Shares now trade 17% below the 52-week high of $308.67 and well above the $84.25 low.

The fuel is fundamental. Q4 FY26 revenue hit $437 million, up 157.02% year over year, with non-GAAP EPS of $1.16 beating the $1.0341 estimate by 12.17%. Full-year FY26 revenue tripled to $1.34 billion, and non-GAAP net income grew more than 5x to $662 million.

The Case for $335 and Higher Our bull-case path lands at $335.34 over the next 12 months, a 24.67% gain. The setup is credible. CEO Bill Brennan guided FY27 revenue growth to more than 80% year over year, with Optical DSPs, SiPho PICs, and ZeroFlap optics each contributing more than $100 million.

He also flagged Neo Cloud customers eventually reaching roughly 20% of total revenue. The Street’s bullish camp is thick: 4 Strong Buy, 13 Buy, 1 Hold, 0 Sell ratings.

The Risks Worth Watching The bear path takes Credo to $207.53, or 22.85% downside. Customer concentration is the headline risk: in Q4, the top customer was 34% of revenue and the second largest was 27%. Inventories also jumped to $250.8 million, and the trailing P/E sits at 108.

In fairness, bulls would counter that the inventory build supports the FY27 optical ramp Brennan described, and the forward P/E is a more digestible 51. Composite sentiment has also slipped 10.03 points over 30 days.

Credo Price Prediction 2026-2030 The 24/7 Wall St. price target of $263.97 is functionally on top of the current quote, our recommendation is hold, and our confidence is 90%. The decisive factor is valuation symmetry: trailing multiples have caught up to FY26’s spectacular growth.

The bullish trigger to watch is whether the FY27 optical ramp tracks ahead of the $600 million bar and Neo Cloud customers diversify the top-line. The bearish trigger is whether the top-two customers slow orders or gross margin slips below the 67% to 69% guide.

Looking further out, here is where our model projects Credo could trade, assuming the optical inflection plays out and AI capex stays elevated.

Year 24/7 Wall St. Price Target 2026 $263.97 2030 $294.24 These projections assume Credo continues converting design wins into revenue. Significant upside could emerge from CPO and NPO traction in FY28, while a hyperscaler capex pause is the largest downside risk.

The firm sees Credo’s total addressable market swelling above $10 billion as agentic AI drives backend and frontend network builds across hyperscalers and neoclouds.

CRDO stock is moving. See the chart and price action here.  BNP Paribas underscores that Credo’s push into optics is additive, not a signal that short‑reach copper is fading. 

The company still expects roughly half of its roughly 80% year‑over‑year fiscal 2027 growth to come from Active Electrical Cables, implying about 47% growth to approximately $1.8 billion of AEC revenue. 

Credo argues its SerDes-plus system‑level approach yields tighter integration, better reliability, and latency of roughly 6 ns versus peers at around 10 ns, which could matter as AI clusters become more scale‑out and latency-sensitive.

Optics Optics is the other major leg of the story. BNP Paribas expects more than $600 million of fiscal 2027 revenue from ZeroFlap (ZF) optical transceivers, optical DSPs and DustPhotonics Ltd photonic integrated circuits, approaching a 25% mix and offering margin accretion versus the corporate average. 

Credo plans to ship hundreds of thousands of ZF transceiver units per month by late fiscal 2027, with a two to three-times volume ramp over the subsequent years as it broadens beyond its initial two hyperscalers and two neoclouds. 

The DustPhotonics acquisition is central to Credo’s optical differentiation. DustPhotonics’ PICs use proprietary Low Loss Laser Coupling technology to cut laser count by about 75%, from eight lasers to two. 

Branching OutCustomer concentration risk appears to be easing with BNP Paribas expecting Credo to have three to four 10% hyperscale customers in fiscal 2027. 

Evercore ISI initiated coverage on CRDO Monday with an Outperform rating and a $325 price target. The analysts highlighted Credo’s systems approach—design, manufacturing, and end‑to‑end testing—as a key competitive advantage versus traditional optical module vendors. 

The firm expects Credo’s optical revenue alone to reach more than $600 million by 2028, supported by investments in optical DSPs and differentiated module architectures. 

The TakeawayTaken together, both firms view Credo as evolving from a pure‑play AEC vendor into a dual copper‑and‑optical AI connectivity platform with hyperscaler‑grade scale, expanding TAM and a roadmap tied directly to the next wave of agentic AI infrastructure build‑outs.

CRDO Stock Price Activity: Credo stock was up 7.67% at $292.67 at the time of publication on Monday, according to data from Benzinga Pro.

Over the past month, CRDO has gained about 27.4% versus a 0.7% decline in the S&P 500 and is up roughly 96% year-to-date compared to the index’s 8.6% gain. The stock is trading at new 52-week highs.

Photo: Explode / Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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