Credo: Why I'm Buying Again (Rating Upgrade)

Yiannis Zourmpanos 18.02K Followers Follow Summary Credo delivered 115% revenue growth, while management expects 85%+ FY2027 growth and more than $600 million optical revenue. AEC growth is normalizing, but DSPs, silicon photonics, and ZeroFlap Optics are becoming Credo’s next major growth engines. Non-GAAP gross margin remained 68%, while a 25% inventory increase creates an important test for the second-half optical ramp. PILOT telemetry could create a data-driven reliability moat, as link failures can reduce expensive GPU utilization by 10%-20%. CRDO has corrected roughly 40% from $309, bringing shares near my $175-$190 buy zone around long-term technical support. panumas nikomkai/iStock via Getty Images Investment Thesis Credo Technology Group ( CRDO ) has already proven that Active Electrical Cables (AEC) can become a major AI infrastructure business. With Q1 FY2027 behind, what I view as the more interesting question now is whether Credo can duplicate the success playbook in This article was written by Yiannis Zourmpanos 18.02K Followers Follow Hi, I'm Yiannis. Spotting winners before they break out is what I do best.Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with BSc and MSc degrees from U.K. business schools. Investment Style: Spotting high-potential winners before they break out, focusing on asymmetric opportunities (with at least upside potential of 3-5X outweighing the downside risk). By leveraging market inefficiencies and contrarian insights, we seek to maximize long-term compounding while protecting against capital impairment.Risk management is paramount—we seek a strong margin of safety to protect against capital impairment while maximizing long-term compounding. Our 2-3 year investment horizon allows us to ride out volatility, ensuring that patience, discipline, and intelligent capital allocation drive outsized returns over time. Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRDO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.