Credo Technology Group rated Buy on strong copper and optical growth, with $600M optical sales target by 2027.

Credo Technology Group (CRDO) remains a Buy due to strong growth prospects in copper and optical connectivity solutions. The delay of NVIDIA's Kyber NVL144 chip boosts demand for CRDO's high-margin copper AEC business, providing a near-term advantage. CRDO's initiatives in optical, ALC, and OmniConnect position the company for multi-year growth, with management aiming for $600 million in optical sales by 2027. Despite risks like valuation and customer concentration, CRDO's efficient fabless model and sector tailwinds justify a fair value estimate of $316 per share.