Photonics And Optics Are In Shortage, Buy Credo

Summary Credo Technology offers a compelling AI infrastructure play, with the recent margin compression driven by non-cash amortization from the DustPhotonics acquisition. Non-GAAP gross margins remain stable at 68%, while GAAP margin drag will naturally diminish as CRDO's revenue base expands through the AI-driven optical ramp. CRDO's portfolio is uniquely positioned to bypass the industry-wide indium phosphide laser shortage, enabling higher module output and capturing outsized demand during the 1.6T transition. At $190, CRDO is priced conservatively relative to its projected FY28 growth, offering 31% upside to $252 per share if the ramp executes as expected. EschCollection/DigitalVision via Getty Images Credo Technology ( CRDO ) reported its Q1 earnings and despite beating expectations on both revenue and earnings, the stock tanked about 20% the next day. And it kept tanking towards the lows of $148, which was half of where it This article was written by Dustin Quasney 370 Followers Follow I was a business intelligence (BI) analyst and used build tools that help people make better decisions. After that I ran an e-commerce dropshipping business that fortunately worked out very well for me. That experience gave me my first real opportunity to build meaningful savings and begin thinking seriously about long-term investing and financial independence.After stepping away from the business, I spent time traveling and later took a career break to manage a family property following my grandfather’s passing. When COVID slowed everything down, I finally had the time and the capital to study investing in depth.I became especially interested in portfolio management, retirement planning, long-term compounding and high-yield dividend investing. I am here to share my personal investing experiences, research and opinions but not to pretend I have every answer. My writing will reflect how I actually invest, including what I like. If you find it helpful then you’re welcome to follow along. 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.