They provide the "Active Electrical Cables" (AECs) that connect the world's most powerful AI clusters.
- Triple-Digit Hypergrowth: Q2 2026 revenue just hit $268M (up 272% YoY). They aren't just growing; they are exploding as hyperscalers (Amazon, Microsoft, Meta) build out their data centers.
- AI supercomputers (like the ones built by Amazon, Microsoft, and Elon Musk) require thousands of chips to talk to each other.
- Credo's cables are the industry standard for connecting these chips.
- If you've seen photos of giant "walls" of purple cables in data centers, those are almost certainly Credo’s.
- The "Copper" Advantage: Their AEC technology is 1,000x more reliable and uses 50% less power than traditional optical fiber for short distances. In a world where AI power consumption is a bottleneck, Credo is the solution.
Full-Year FY2026 Outlook
Credo significantly increased its full-year expectations:
- Revenue Growth: Now expected to be approximately 170% for the full fiscal year 2026, a major jump from their previous projection of 120%.
- Total Revenue: Analyst consensus following the call moved to approximately $1.19 billion for the year
Most analyst PT are above 200. Stock was at 210 day after earnings last quarter and dropped to 130s and is currently at 150s.
My Due Diligence on Credo Technology ($CRDO) it doesnt get enough attention.
byu/AloneStaff5051 instocks
Posted by AloneStaff5051
4 Comments
They may be good value.
But, what do you make of the push towards photonics interposers?
This shifts the connections away from copper to optic as the future option of choice.
Photonics is the next frontier in terms of bandwidth, at low energy and with low heat production – all critical for data centres.
> My DD doesnt get enough attention 😢
At least, dude has enough self awareness that he’s only seeking attention 🙏🏻 Calls on social media!
Seems like it has potential even for pe over 100 but why does management sell their stocks, all of them sold stock this year. I get the diversification but shows little lack of belief in evaluation.
PE is very high, they are just recently profitable, constantly diluting to keep up with R&D and marketing expenses.
It does have first mover advantage and AEC cables are increasing popularity. It’s a sub 50b company built on single specific product type that solves a relatively new limiting issue.
That’s as much as I am willing to look at it. I don’t know, I feel we are already spending too much on these AI data centers.