Credo Technology transformed from an AEC supplier into a comprehensive AI connectivity platform provider, leveraging its existing cable installations in major AI clusters. In FY 2026, the company reported a 206% revenue increase to $1.34 billion, with a 68% GAAP gross margin and strong free cash flow, boosted by the DustPhotonics acquisition. Management projects over 80% revenue growth in FY 2027, expecting optics to contribute more than $600 million and aiming for a non-GAAP net margin near 50%. Despite risks like customer concentration and supply chain issues, the company’s valuation suggests a 19-22% upside, supporting a Buy rating.
Shares of Credo Technology Group Holding Ltd have fallen over 30% from recent highs, reflecting broader market weakness and a cooling AI trade. Despite the drop, the company’s copper and optical technology segments are gaining momentum, supported by ...
Credo Technology's shares fell over 36% even after reporting a 157% revenue increase and 231% rise in adjusted EPS for fiscal Q4, showing strong cash flow and operating leverage. The company highlights the importance of its ZeroFlap AECs for AI conne...
