Credo remains a long-held bullish position two years on, built on high-speed connectivity products that data centers need for AI, cloud and high-performance networking. Its Active Electrical Cables integrate electronics to boost signal strength over short to medium distances, and its optical DSPs cover speeds from 100G to 1.6T, addressing growing demand for faster data transfer. x.com 

Sumitomo Electric owns both key layers of the optical laser supply chain: it is #1 in indium phosphide substrate with about 42% share and a capacity leader in CW-DFB lasers. Lumentum prepaying AXT $43.5M for substrate through 2031 shows where the leverage sits, yet AXT is only one of three suppliers. Sumitomo gets little attention. x.com 

Sumitomo Electric is not an attractive long at about 30x earnings because too much of its revenue comes from automotive components, historically a terrible business. It is well run, with high operating cash flow and major earnings growth, and should still do well in physical AI, but there are better spots. Its equal or better InP manufacturing capability, with supply it can add fairly quickly if margins explode, instead underpins a small short on AXT. x.com 

Credo is one of the cheapest AI growth stocks, trading around 26x forward earnings after a hard correction while revenue grew 115% to $479M and full-year growth is guided above 85%. Margin worries mostly reflect DustPhotonics amortization and stock comp; non-GAAP gross margin held near 68%. DustPhotonics adds a second engine in optics, with over $600M expected this year, and Credo's low-laser designs can ship through the laser shortage. One customer at about a third of revenue is the main risk. … Show more

Credo Technology sits right in the middle of the AI networking, connectivity and photonics theme, and Wall Street has just handed over an easy opportunity in it. The AI connectivity thesis keeps playing out across photonics, with FY26 revenue up 206% at 68% non-GAAP gross margins. x.com 

Applied Digital's data-center buildout is paying off, with $73B of potential contracted revenue now signed with investment-grade hyperscalers. Earlier, with ground broken on Polaris Forge 2 and another deal in the works, the company already had a clear path to $1B+ in annual recurring revenue. x.com 

Semiconductor multiples should start compressing as investors get more ways to play the AI trade. Meta, Google, Anthropic, SpaceX and OpenAI could raise $350B-$400B from public markets in the next 9-12 months, or $550B-$600B if Amazon and Microsoft join. Analog companies with only 5-10% AI revenue exposure should not trade at 100-200x earnings, nor should mobile-supply-chain RF and wireless names carry super-high valuations. x.com  x.com 

These ten semiconductor stocks look cheap because each has a PEG ratio near or below 1, meaning growth outpaces valuation. Nvidia's Q1 revenue rose 85% and AMD's 38% with MI350 commitments; Broadcom's AI chip revenue rose 143% with a $73B AI backlog; Marvell's custom silicon doubled. Sandisk has $42B in contracted backlog, Micron's HBM is sold out through 2026, and Coherent, Credo and Applied Optoelectronics ride AI optics demand. ON Semiconductor is the slow-growth value play. x.com  x.com  x.com  … Show more

Credo's growth rides surging AI interconnect demand, and management expects revenue to grow more than 85% in FY27. F1Q27 revenue rose 115% to $479 million, EPS of $1.20 slightly beat, and F2Q27 guidance is $525-535 million. Active electrical cables remain the near-term engine as adoption broadens across hyperscalers and neoclouds; FY27 optical revenue is still expected above $600 million, though a higher optical mix dilutes gross margin. The $227 target rests on 20x FY28 EPS of $11.40. x.com 

Credo's 45% drop from its high was about customer concentration and valuation, not demand, making it a great long-term buy. The latest quarter beat on revenue and guidance: revenue grew 115% to $479M, a seventh straight quarter of triple-digit growth, and management guided to more than 85% growth for the fiscal year. Optical revenue is targeted to pass $600M this year, on top of the AEC business five hyperscalers already buy. x.com