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 looks cheap against its earnings at about 17.5x next year's EPS, versus the roughly 38x chipmakers usually get. At 38x the $9.63 forecast EPS, give or take 12%, fair value is about $322-410, leaving the stock near $168 about 48% below the low end. The view leans heavily on forecasts, as forward EPS is 284% above trailing, and it is a valuation-levels read rather than fundamental work. x.com 

Credo is buying its re-acceleration at a flat gross margin, and at 36 times forward earnings, growth without margin is worth less. Q2 revenue guidance of $525-535M topped the $514.7M consensus, but non-GAAP gross margin went 68.6%, 68.3%, 68.0% and is guided at 67-69% again, while the beat over estimates shrank from 41% to 0.8%. Three customers are 77% of revenue. Credo sells copper, and Marvell expects scale-up optics from 2027. A print above 69% on $530M would prove this too cautious. x.com  … Show more

Credo's valuation is not absurd relative to its growth. The latest selloff is another overreaction. x.com  x.com 

Credo is a steal at about 70 times forward free cash flow given how fast cash generation is growing, supporting a raised target of $280 by the end of 2027. Revenue is expected to grow more than 80% year over year, and free cash flow reached about $178 million this quarter, up over 225%, with a credible path to roughly $600 million a year. It has no debt and expanding profitability. Any after-hours weakness misses the point; what matters is where the stock will be next year. x.com 

Credo needs a slightly lower price before adding. FY28 EPS of about $10, a 70% growth rate from today, would support a $350 stock at 35x, a 0.5x PEG. 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's projected EPS surge makes it one of the semiconductor industry's most explosive growth stories. The chart puts EPS at $0.31 in FY25, $9.69 in FY28E and $12.45 in FY29E, nearly 40x over four years. x.com 

Credo's results were underwhelming for a company that added $32 billion in market value in a few months, and shorts may punish the stock. Per @WisemanCap, fiscal Q4 EPS of $1.16 beat the $1.02 estimate and revenue of $437 million was just above estimates, while Q1 fiscal 2027 revenue guidance of $465-476 million was roughly in line with the $464.7 million consensus. x.com  x.com 

Credo was an easy buy because its share price was ridiculously low against estimated revenues, as a quick look at its last quarterly report showed despite the hate. @KawzInvests adds that the DustPhotonics deal removes the bear case that a shift to optical breaks Credo, giving it a silicon photonics portfolio from 400G to 1.6T with a 3.2T roadmap. x.com