Credo expands into silicon photonics with DustPhotonics acquisition, targeting $600M optical product revenue by 2027

Credo has completed its acquisition of DustPhotonics, marking its expansion into silicon photonics and establishing a vertically integrated AI connectivity platform beyond its existing AEC business. Management projects that optical products will generate over $600 million in revenue by fiscal 2027, with three product lines each expected to exceed $100 million. Additionally, Neo Cloud customers could contribute about 20% of total revenue in the future, reducing dependency on hyperscalers and opening new growth opportunities. Analysts forecast Credo's revenue to grow from $2.46 billion in fiscal 2027 to $6.78 billion by fiscal 2031, with earnings per share rising from $6.13 to $14.72, and valuation expected to compress significantly if the company executes its optical strategy successfully.