Credo Technology's Q1 revenue jumps 115% YoY, with strong growth expected through 2027 despite AI spending concerns

Credo Technology reported a 115% year-over-year revenue increase in Q1, reaching $479 million and marking its seventh straight quarter of triple-digit growth. Management forecasts over 85% revenue growth by fiscal year 2027 and around 50% non-GAAP net margins, driven by optical revenue surpassing $600 million. Key growth areas include silicon photonics, ZeroFlap, and optical DSPs. Despite recent stock price correction due to valuation pressures and AI spending worries, Credo trades at a more attractive valuation with a 25.9x forward non-GAAP earnings multiple and a 0.52 PEG ratio, improving its risk/reward profile for investors.

Credo Technology trades at USD 152.56 on Pluang as of Sep 15, 2026 19:02 WIB, up 1.65% for the day. The stock's market cap stands at $28.21 billion, well below its 52-week high of $302.52. This valuation context highlights the recent price correction mentioned in the news.