Credo's Biggest Shift Is Still Undervalued
Sentiment Analysis
Credo generated over $1.3 billion in fiscal 2026 revenue and expects more than 80% growth during fiscal 2027. Optical products, including ZeroFlap optics, DSPs, and silicon photonics, are targeted to exceed $600 million in revenue. Dust Photonics acquisition expanded Credo into a vertically integrated AI connectivity platform spanning copper and optical technologies. Despite premium valuation at 42x forward earnings, EPS growth estimates imply significant multiple compression through 2028.
The pullback in Credo Technology (CRDO) has failed to change my conviction. If anything, I now think the market continues to significantly undervalue the extent of the transformation the company is undergoing.
Source: Seeking Alpha
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