Credo's near-total share of AI data-center cables and unchanged estimates make its lower multiple look like a fear-driven opportunity. Its stock went from 27x to 20x forward earnings while the supply chain building those systems guided 2027 revenue to double. Buyers this week will probably be very happy a year from now. 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 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's MicroVCSEL offers upside that does not appear priced in. Its copper and optics exposure, a SpaceX tailwind and fundamentals that look too good for its current valuation make it one of the tidiest AI infrastructure investments. x.com 

Credo is shifting from a cable company to an optics-led growth story, and its beat-and-raise confirms real AI infrastructure demand. Q1 revenue was $479M versus $435M expected, and Q2 guidance of $525–535M topped the $465M consensus, with 68% non-GAAP margins. Credo reiterated over $600M of FY27 optical revenue, with ZeroFlap optics, PICs and optical DSPs each above $100M. Its Pilot software cuts AI cluster bring-up from 6–8 weeks to 5–6 days. The top four customers drove 84% of Q1 revenue. … Show more

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

Credo could be at an optimal entry point after falling more than 25% in a week despite a good earnings report the market seemingly disliked. It provides critical AI infrastructure connectivity that moves data very fast between clusters, and is projected to grow extremely quickly for the next few years. x.com 

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'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 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