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'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 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 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 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 

Credo's upside looks capped as growth falls short of earlier expectations and large stock-based compensation, hidden behind GAAP financials, looks excessive. BofA cut its target to $275 from $340 and Evercore to $292 from $325 on deceleration worries, the 1.6T DSP is delayed, and operating cash flow fell to $90M. The stock is 43% off its high; at $164 it trades at 30-33x FY27 earnings and 13x forward sales, more reasonable but still not worth owning. x.com  x.com  x.com  x.com 

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 is worth buying on its post-earnings dip. 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 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