Credo Technology's AI data-center business is growing at a speed most chip investors usually reserve for Nvidia, and the quieter wiring trade is no longer staying quiet.
Credo Technology Group ended fiscal 2026 with the kind of numbers that force investors to look past the usual GPU names. According to Credo's June 1 results release, fourth-quarter revenue reached $437.0 million, up 157.0% from a year earlier, while non-GAAP diluted earnings came in at $1.16 a share. For the full year, revenue was $1.335 billion, up 205.7%.
That's not a small beat. That's a company that more than tripled in twelve months.
You may not know Credo if your AI watchlist starts with Nvidia and ends with the hyperscale cloud firms. Somebody still has to move the data between all those accelerators. Credo sells the active electrical cables, optical DSPs, SerDes chiplets and related connectivity products that help servers talk to each other inside AI data centers. Nobody puts cabling on a conference keynote slide for long. But when a cluster is packed with GPUs, the connections between them stop being background plumbing.
The near-term guide stayed strong too. Credo told investors it expected revenue of $465.0 million to $475.0 million for the quarter ending August 1, 2026, with non-GAAP gross margin between 67.0% and 69.0%. The company also ended fiscal 2026 with $1.4 billion in cash and short-term investments, which gives it room to build while demand is still hot.
The Stock Has Already Moved #
Wall Street has been catching up. Google Finance's analyst table recently showed Stifel at a $350 target, Roth MKM at $300, Mizuho at $290, Needham at $275, Jefferies at $270, J.P. Morgan at $250 and Rosenblatt at $215. Bank of America was even higher at $340 in a late-June reiteration. Those numbers aren't all saying the same thing, and they shouldn't. A stock that has run this hard deserves an argument.
Investors Business Daily noted this week that Credo had bounced after the July semiconductor sell-off and was forming a later-stage cup base, a setup it described as higher risk than an early breakout. That's the right warning. You don't get 157% quarterly revenue growth and a calm chart at the same time.
The technical story under the stock is simple enough. Credo's ZeroFlap active electrical cables are built for short, dense AI data-center links where power, reach and reliability matter. In its annual filing, Credo said its ZeroFlap CLOS AECs use up to 50% less power than optical solutions and up to 75% less volume than direct attached copper cables, with cabling densities up to 1,000 cables per rack. Its SPAN AECs support up to seven-meter reach and a 10-year service life.
That's the sales pitch in plain form: less power, less bulk, fewer link problems.
Frankly, this is why the AI infrastructure trade keeps widening. The first wave of attention went to chips. Then investors moved to memory, networking and power. Credo sits in that same chain, but in a less glamorous spot. The glamour doesn't matter if the order book is there.
Optical Is The Next Test #
Credo is also trying to make sure it isn't seen as only an AEC story. On April 13, the company agreed to acquire DustPhotonics for $750 million in cash plus about 0.92 million Credo shares, according to its SEC filing and Reuters' brief on the deal. Credo completed the acquisition on May 28. The target brings silicon photonics photonic integrated circuit technology into Credo's portfolio, alongside its DSP and optical transceiver work.
That matters for fiscal 2027: Credo has put a real number on the opportunity. In the DustPhotonics announcement, the company said it expected its ZeroFlap optical transceivers, optical DSPs and silicon photonics products to generate more than $500 million in optical revenue in fiscal 2027. That's a big claim for a young acquisition. Seeking Alpha's earnings-call summary later put management's optical expectation above $600 million, along with more than 80% total revenue growth for the year.
Credo has also been showing off OmniConnect Weaver, its LPDDR5X memory fanout gearbox chiplet. The product page lists 112G VSR SerDes, 12 lanes, up to 16TB/s of memory bandwidth and up to 6.4TB of memory density. That's not this quarter's earnings story, but it's a useful sign of where the company wants to sit: closer to the memory and compute bottlenecks that define AI inference systems.
Here's the thing to keep in view before chasing a stock that has already had a large move. Credo doesn't sell the headline AI processor. It sells the connective tissue that lets a cluster behave like a cluster. That can be a smaller market than GPUs and still be a very good business, especially when one quarter's revenue now matches what the company used to do in an entire year.
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