Credo Technology reported a 206% year-over-year revenue increase to $1.335 billion, driven by strong demand for copper cables used in AI data center clusters. The company expects growth to moderate with a 7% quarter-over-quarter rise projected for Q1, while optics revenue, a lower-margin segment, is anticipated to accelerate from the second half of fiscal 2027, targeting over $600 million. Non-GAAP operating margin jumped from 8.5% to 48%, but margin compression is expected as optics contribute more to revenue. Credo trades at 18 times FY27 EV/Sales and 38 times EV/EBIT, appearing relatively cheap on sales but expensive on profits compared to sector leaders, with risks including customer concentration and competition.
A simple tap on a smartphone triggers a complex AI-driven process that spans from touch sensors to cloud computing, cybersecurity, automated warehouses, and last-mile delivery technologies. Key companies like Nvidia, Qualcomm, and Ambarella provide t...
Credo generated over $1.3 billion in revenue in fiscal 2026 and expects more than 80% growth in fiscal 2027, fueled by strong sales in optical products like ZeroFlap optics, DSPs, and silicon photonics. The acquisition of Dust Photonics has expanded ...
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