Credo's leading AEC position and vertical integration keep its optics thesis bullish despite SpaceX moving away from 1.6T AECs. That shift is a genuine risk, but xAI has been in Credo's AEC ecosystem the longest, which could support ZeroFlap optics and its telemetry software. Credo's VCSEL-based ALCs were still ramping toward 2027, giving it another route as customers move to transceivers. x.com  x.com  x.com 

Credo's acquisition of DustPhotonics is strategically compelling, though the investable case is narrower than a generic move into optics. What is evidenced is tighter control of the silicon photonics PIC layer, better DSP-PIC co-design, stronger 800G and 1.6T pluggable positioning and more flexibility across AECs, optical DSPs and transceivers. Dust's revenue, margin and backlog are undisclosed, so the $500M+ FY27 optical target and EPS accretion are management framing, not proof. x.com 

Credo is a trade rather than a long-term hold because co-packaged optics is the technology that closes the copper-to-optics gap its retimers and active electrical cables fill. If CPO ramps faster than expected in the 2027 architecture cycle, those products get designed out. That is not a 2026 problem, but it is why a decelerating hyper-growth chipmaker can't keep a 15x sales multiple forever. Customer concentration, which hit the stock before, adds risk, and Credo fits no AI endgame theme. x.com  … Show more

Credo was wrongly dismissed as a copper-era connectivity play, and analysts are finally recognizing its optical roadmap. Per @wallstengine, Evercore ISI initiated at Outperform with a $325 target, saying Credo will increasingly be seen as a broad copper and optical AI-connectivity play through optical DSPs, silicon photonics ICs, microLED cables and especially ZFOptics modules, taking the same systems approach as with AECs. The market had decimated it in late 2025 as a horse-and-buggy name. … Show more

Credo's case rests on expanding its share of the AI connectivity stack, not on AEC keeping its extraordinary growth. AEC remains its largest business, with healthy growth and deep ties to five hyperscalers. Optical expands rather than merely replaces it: optical DSP, silicon photonics PICs and ZeroFlap optics should bring over $600M of revenue in FY2027, so a smaller AEC share is fine if the company grows. After its microLED ALC reveal, Credo looks clearly undervalued. x.com  x.com  x.com  x.com  … Show more

Credo is worth buying on its post-earnings dip. x.com 

Credo's selloff on a raise reflects impatience, since its next growth leg is a fiscal 2028 story that begins in May 2027. It printed $479M, guided $525-535M and lifted full-year growth to more than 85%, yet sold off for a second straight print. CEO Bill Brennan called fiscal 2027 just a stepping stone for optics: OmniConnect, micro-LED cables and near-package optics turn on in fiscal 2028, when AECs step up to 1.6T. x.com  x.com 

Optical transceiver demand exceeds supply, and 1.6T lifts revenue per module for suppliers able to qualify capacity. Applied Optoelectronics raised at least $1.62B through 2026 ATMs; its last reported monthly capacity was 200,000 modules versus a year-end target above 650,000. Credo expects over $600M in FY2027 revenue across optical DSPs, PICs and modules, not modules alone. Shipments, yields and margins must prove out. Lumentum and Coherent already price in much expected growth. x.com 

Optics and photonics should be among AI's biggest winners as faster GPU networks need optical connections that suppliers cannot expand quickly enough. Lumentum says some components are sold out through early 2029; Sivers is investing $30M to target more than 100M lasers a year, with operations expected in Q4 2027. Potential US restrictions on Chinese transceivers could reshape supply in 2027. Applied Optoelectronics and Sivers are the favorites. x.com  x.com 

Credo's post-earnings selloff is overdone, reflecting normalizing hypergrowth and first-quarter DustPhotonics costs rather than any demand break. Q1 revenue rose 115% to $479M, its seventh straight triple-digit quarter, Q2 guidance of $525-535M beat the Street, and FY27 optical revenue is targeted at $600M+ as optics outgrows AECs. Management sees thousands of dollars of Credo content per GPU. Risks include customer concentration, Broadcom and Marvell in optical DSPs, and new AEC rivals. x.com  … Show more