Credo Technology Completes Acquisition of DustPhotonics
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: seekingalpha
- Acquisition Completed: Credo Technology announced on Thursday that it has completed its acquisition of DustPhotonics, involving $750 million in cash and approximately 0.92 million common shares, which is expected to significantly enhance the company's market competitiveness.
- Technology Integration: DustPhotonics' silicon photonic integrated circuit technology will combine with Credo's ZeroFlap optical transceivers and optical DSP products, anticipated to become a major growth driver for fiscal 2027.
- Portfolio Expansion: This acquisition will expand Credo's optical interconnect portfolio to cover 800G, 1.6T, and 3.2T near-packaged optics and co-packaged optics, further solidifying its leadership in the optical connectivity sector.
- Market Reaction: Following the acquisition announcement, Credo's stock price fell 0.41% in pre-market trading to $220.32, reflecting market concerns over its high valuation.
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Analyst Views on CRDO
Wall Street analysts forecast CRDO stock price to fall
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 222.350
Low
170.00
Averages
221.82
High
260.00
Current: 222.350
Low
170.00
Averages
221.82
High
260.00
About CRDO
Credo Technology Group Holding Ltd is a Cayman Islands-based holding company. The Company delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides high-speed connectivity solutions that deliver improved power efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. Its connectivity solutions are optimized for optical and electrical Ethernet applications, including the emerging 100 gigabits per second (G), 200G, 400G, 800G and the emerging 1.6 terabits per second (T) port markets. Its products are based on its Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies. Its product families include integrated circuits (ICs) for the optical and line card markets, active electrical cables (AECs) and SerDes Chiplets. The Company’s intellectual property (IP) solutions consist primarily of SerDes IP licensing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Credo Technology Set to Announce Q4 Earnings on June 1st
- Earnings Expectations: Credo Technology is set to announce its Q4 earnings on June 1st, with Wall Street anticipating an EPS of $1.03, reflecting a 194.3% year-over-year increase, and revenue of $433.3 million, up 154.8% year-over-year, indicating robust growth momentum.
- Performance Drivers: The company reported a beat-and-raise in Q3, with revenue growth driven by the proliferation of active electrical cables and customer diversification, highlighting its increasing competitiveness in the market.
- Future Outlook: Credo expects Q4 revenue to range between $425 million and $435 million, with adjusted gross margins projected between 64% and 66%, reflecting growing market confidence in its transition to an AI connectivity platform.
- Investor Focus: Analysts emphasize that investors should monitor the progress of ZeroFlap optics, the 200G per lane capability, and customer diversification, as these factors will significantly impact the company's performance in fiscal 2027.
See More
Credo Technology Completes Acquisition of DustPhotonics
- Acquisition Completed: Credo Technology announced on Thursday that it has completed its acquisition of DustPhotonics, involving $750 million in cash and approximately 0.92 million common shares, which is expected to significantly enhance the company's market competitiveness.
- Technology Integration: DustPhotonics' silicon photonic integrated circuit technology will combine with Credo's ZeroFlap optical transceivers and optical DSP products, anticipated to become a major growth driver for fiscal 2027.
- Portfolio Expansion: This acquisition will expand Credo's optical interconnect portfolio to cover 800G, 1.6T, and 3.2T near-packaged optics and co-packaged optics, further solidifying its leadership in the optical connectivity sector.
- Market Reaction: Following the acquisition announcement, Credo's stock price fell 0.41% in pre-market trading to $220.32, reflecting market concerns over its high valuation.
See More
Credo Acquires DustPhotonics to Expand Optical Connectivity Portfolio
- Acquisition Completed: Credo Technology Group has completed its acquisition of DustPhotonics, enhancing its competitive edge in optical connectivity, with DustPhotonics' silicon photonics integrated circuit technology expanding Credo's portfolio to include 800G, 1.6T, and 3.2T near-packaged and co-packaged optical solutions.
- Technology Integration: By integrating DustPhotonics' technology, Credo now possesses a vertically integrated connectivity stack that spans SerDes, digital signal processing (DSP), and system integration, addressing both electrical and optical interconnect needs for AI infrastructure, thereby facilitating future network scaling.
- Market Outlook: Credo anticipates that by fiscal 2027, its combined portfolio of optical transceivers, optical DSPs, and silicon photonics products will become a significant growth driver, reflecting strong customer traction and increasing demand in hyperscale AI deployments.
- Strategic Vision: Credo's CEO Bill Brennan emphasized that this acquisition marks an important milestone for two technology-driven companies, as they will work together to advance efficient and reliable optical connectivity solutions to support customer expansion in AI infrastructure.
See More
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- Snowflake Surge: Snowflake experienced a strong rebound in after-hours trading, with its stock price rising, reflecting market optimism regarding its financial performance and future outlook, potentially drawing more institutional investor attention.
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- Marvell Growth Outlook: Marvell expects fiscal 2027 revenue to grow over 30% year-over-year to nearly $11 billion, with a further 40% increase projected for fiscal 2028, highlighting its robust growth potential in custom AI chips and optical interconnect technologies.
- Credo Revenue Boom: Credo's revenue surged 201% year-over-year to $407 million in Q3 2026, with Q4 guidance between $425 million and $435 million, showcasing rapid expansion in the AI connectivity solutions market.
- Industry Consolidation and Risks: Credo is enhancing its optical networking capabilities through the acquisition of DustPhotonics, and despite facing high customer concentration risk (with top three customers accounting for 88% of revenue), it could achieve significant growth if it successfully transitions into a broader AI connectivity platform.
See More
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- Marvell Technology Outlook: Marvell anticipates a more than 30% year-over-year revenue growth to nearly $11 billion in fiscal 2027, with a further 40% increase projected for fiscal 2028, showcasing robust growth potential in custom AI chips and high-speed connectivity markets.
- Credo Technology Expansion: Credo's revenue surged 201% year-over-year to $407 million in Q3 of fiscal 2026, with Q4 revenue guidance between $425 million and $435 million, reflecting ongoing demand and market expansion in cloud AI infrastructure.
- Investor Confidence Boost: Nvidia's $2 billion investment in Marvell underscores its strategic value in AI infrastructure, and as demand for efficient connectivity technologies rises, related stocks may experience significant upward momentum.
See More
Credo Technology Set to Announce Q4 Earnings on June 1st
- Earnings Expectations: Credo Technology is set to announce its Q4 earnings on June 1st, with Wall Street anticipating an EPS of $1.03, reflecting a 194.3% year-over-year increase, and revenue of $433.3 million, up 154.8% year-over-year, indicating robust growth momentum.
- Performance Drivers: The company reported a beat-and-raise in Q3, with revenue growth driven by the proliferation of active electrical cables and customer diversification, highlighting its increasing competitiveness in the market.
- Future Outlook: Credo expects Q4 revenue to range between $425 million and $435 million, with adjusted gross margins projected between 64% and 66%, reflecting growing market confidence in its transition to an AI connectivity platform.
- Investor Focus: Analysts emphasize that investors should monitor the progress of ZeroFlap optics, the 200G per lane capability, and customer diversification, as these factors will significantly impact the company's performance in fiscal 2027.
See More
Credo Technology Completes Acquisition of DustPhotonics
- Acquisition Completed: Credo Technology announced on Thursday that it has completed its acquisition of DustPhotonics, involving $750 million in cash and approximately 0.92 million common shares, which is expected to significantly enhance the company's market competitiveness.
- Technology Integration: DustPhotonics' silicon photonic integrated circuit technology will combine with Credo's ZeroFlap optical transceivers and optical DSP products, anticipated to become a major growth driver for fiscal 2027.
- Portfolio Expansion: This acquisition will expand Credo's optical interconnect portfolio to cover 800G, 1.6T, and 3.2T near-packaged optics and co-packaged optics, further solidifying its leadership in the optical connectivity sector.
- Market Reaction: Following the acquisition announcement, Credo's stock price fell 0.41% in pre-market trading to $220.32, reflecting market concerns over its high valuation.
See More
Credo Acquires DustPhotonics to Expand Optical Connectivity Portfolio
- Acquisition Completed: Credo Technology Group has completed its acquisition of DustPhotonics, enhancing its competitive edge in optical connectivity, with DustPhotonics' silicon photonics integrated circuit technology expanding Credo's portfolio to include 800G, 1.6T, and 3.2T near-packaged and co-packaged optical solutions.
- Technology Integration: By integrating DustPhotonics' technology, Credo now possesses a vertically integrated connectivity stack that spans SerDes, digital signal processing (DSP), and system integration, addressing both electrical and optical interconnect needs for AI infrastructure, thereby facilitating future network scaling.
- Market Outlook: Credo anticipates that by fiscal 2027, its combined portfolio of optical transceivers, optical DSPs, and silicon photonics products will become a significant growth driver, reflecting strong customer traction and increasing demand in hyperscale AI deployments.
- Strategic Vision: Credo's CEO Bill Brennan emphasized that this acquisition marks an important milestone for two technology-driven companies, as they will work together to advance efficient and reliable optical connectivity solutions to support customer expansion in AI infrastructure.
See More
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- Oil Price Drop: Oil prices have significantly declined due to weak global demand, with WTI crude falling below $70 per barrel, which could lower transportation and production costs, positively impacting the overall economy.
- Amazon Buy Signal: Amazon's stock has flashed a buy signal, with analysts predicting strong future growth potential, likely attracting more investor interest and further driving its stock price upward.
- Snowflake Surge: Snowflake experienced a strong rebound in after-hours trading, with its stock price rising, reflecting market optimism regarding its financial performance and future outlook, potentially drawing more institutional investor attention.
- Overall Market Performance: Amid the drop in oil prices, major indexes have generally risen, indicating increased investor confidence in economic recovery, which may promote further capital inflows into the stock market.
See More
Three Tech Stocks Poised for Growth in AI Infrastructure
- Astera Labs Financial Surge: Astera Labs reported a 93% year-over-year revenue increase to $308.4 million in Q1 2026, with adjusted EPS rising 84.8% to $0.61, indicating strong demand and market positioning in AI infrastructure.
- Marvell Growth Outlook: Marvell expects fiscal 2027 revenue to grow over 30% year-over-year to nearly $11 billion, with a further 40% increase projected for fiscal 2028, highlighting its robust growth potential in custom AI chips and optical interconnect technologies.
- Credo Revenue Boom: Credo's revenue surged 201% year-over-year to $407 million in Q3 2026, with Q4 guidance between $425 million and $435 million, showcasing rapid expansion in the AI connectivity solutions market.
- Industry Consolidation and Risks: Credo is enhancing its optical networking capabilities through the acquisition of DustPhotonics, and despite facing high customer concentration risk (with top three customers accounting for 88% of revenue), it could achieve significant growth if it successfully transitions into a broader AI connectivity platform.
See More
AI Infrastructure Drives Surge in Related Stocks
- Astera Labs Growth Momentum: Astera Labs reported a 93% year-over-year revenue surge to $308.4 million in Q1, with adjusted EPS rising 84.8% to $0.61, and expects Q2 revenue to increase by 15% to 18% sequentially, indicating strong demand and market positioning in AI infrastructure.
- Marvell Technology Outlook: Marvell anticipates a more than 30% year-over-year revenue growth to nearly $11 billion in fiscal 2027, with a further 40% increase projected for fiscal 2028, showcasing robust growth potential in custom AI chips and high-speed connectivity markets.
- Credo Technology Expansion: Credo's revenue surged 201% year-over-year to $407 million in Q3 of fiscal 2026, with Q4 revenue guidance between $425 million and $435 million, reflecting ongoing demand and market expansion in cloud AI infrastructure.
- Investor Confidence Boost: Nvidia's $2 billion investment in Marvell underscores its strategic value in AI infrastructure, and as demand for efficient connectivity technologies rises, related stocks may experience significant upward momentum.
See More
