Credo Technology Group Holding Ltd (CRDO)

Price$210.97Cached quoteAs of 2026-09-26 09:44 UTC

AI: Fair-priced

Price checkThe valuation is demanding, but expected earnings growth keeps it from looking plainly excessive.

Credo Technology Group Holding Ltd trades on Nasdaq under CRDO. At the observed market price, its market value is roughly $31 billion, about 58 times trailing GAAP earnings and about 26 times consensus fiscal 2027 non-GAAP earnings. GAAP includes all reported costs; non-GAAP excludes items such as share-based compensation and acquisition charges. That is not cheap, but analysts still expect exceptional growth. The sharp post-earnings selloff shows how little tolerance investors have for any slowdown.

Big pictureAI connectivity demand is exceptional, while customer concentration and product cycles make growth unusually fragile.

Fiscal first-quarter revenue was $479.0 million, up 114.7% year over year, and second-quarter guidance was $525 million to $535 million. The growth engine is still concentrated: active electrical cables drove more than 90% of the year-over-year revenue increase, while two customers represented 43% and 28% of quarterly revenue. This makes results sensitive to hyperscaler spending, design wins, product transitions, and inventory cycles. Strong AI infrastructure demand can sustain rapid growth, but semiconductor networking cycles can reverse quickly.

Business strengthMargins, cash generation, and liquidity are strong, though acquisition spending and equity compensation deserve attention.

Credo earned $129.4 million under GAAP in the quarter and generated $90.2 million of operating cash flow despite heavy working-capital investment. It ended with $764.3 million of cash and short-term investments against $284.2 million of total liabilities, with no bank or bond debt line on the balance sheet. However, DustPhotonics consumed about $769.6 million of cash. Fiscal 2026 also raised $736.3 million through an at-the-market sale of 4.8 million shares, while quarterly share-based compensation was $88.0 million, so dilution remains meaningful.

What could change the storyUpside needs the optical ramp to land; downside appears if growth or margins normalize quickly.

A bull case assumes fiscal 2027 revenue grows near the current consensus of about 87%, non-GAAP gross margin stays around 68%, and fiscal 2028 earnings per share approach the 9.63 consensus estimate. Then the valuation could look modest relative to growth. A bear case assumes fiscal 2027 growth slips below 70%, fiscal 2028 growth falls below 35%, GAAP gross margin drops under 60%, or stock compensation stays above 15% of revenue. Under that path, the premium multiple could compress sharply even if Credo remains profitable.

AI: News

Quarter beats, guide risesFiscal first-quarter revenue more than doubled, and next-quarter guidance pointed to continued sequential growth.

On September 1, Credo reported fiscal first-quarter revenue of $479.0 million, up 114.7% year over year, with GAAP net income of $129.4 million. Management guided the next quarter to $525 million to $535 million of revenue and a 67% to 69% non-GAAP gross margin. Non-GAAP excludes selected costs such as stock compensation and acquisition-related items, so the GAAP figures remain important when judging true owner economics.

Joins Open CPX groupCredo joined an industry group developing interoperable optical interfaces for next-generation AI infrastructure.

On August 31, Credo said it joined the Open CPX MSA, a consortium working on common interfaces for near-package and co-packaged optical systems. The move fits Credo's push beyond copper into silicon photonics and optical DSPs. Open standards can expand the addressable ecosystem and speed adoption, but they can also increase competition by making components more interchangeable. The commercial impact depends on whether Credo wins meaningful designs as these architectures mature.

OmniConnect enters OCPCredo moved its memory-interconnect specification toward an open ecosystem aimed at AI inference bottlenecks.

On August 10, Credo said it planned to contribute its OmniConnect lightweight AXI framer specification to the Open Compute Project and formed a related workstream. The goal is to standardize chip-to-memory and chip-to-chip connectivity that can reduce reliance on high-bandwidth memory. Credo says the approach can materially raise memory density while preserving bandwidth, but those performance claims are company-provided. Broad third-party adoption and customer deployments will determine whether this becomes a meaningful revenue stream.

DustPhotonics deal closesThe acquisition adds silicon-photonics technology, but consumed significant cash and adds contingent equity dilution.

Credo completed its DustPhotonics acquisition on May 28 to bring silicon-photonics technology in-house. The later 10-Q recorded total consideration of about $1.25 billion, including roughly $769.6 million of cash, issued shares, and contingent consideration. Most of the purchase price became goodwill, which is the accounting value assigned to expected strategic benefits beyond identifiable assets. The deal broadens Credo's optical stack, but it also raises the stakes for integration, returns on capital, and future dilution.

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Revenue

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2021

2022

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2025

2026

Net income

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2026

Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2026	2025	2024	2023	2022	2021	2020
Revenue	$1.34B	$436.8M	$193.0M	$184.2M	$106.5M	$58.7M	$53.8M
Gross profit	$908.3M	$282.9M	$119.4M	$106.2M	$64.0M	$38.3M	$46.1M
Gross margin	68.04%	64.77%	61.89%	57.65%	60.12%	65.21%	85.64%
Research & development	$279.4M	$146.9M	$96.3M	$76.8M	$47.9M	$34.8M	$27.6M
Operating expenses	$463.3M	$245.8M	$156.5M	$127.4M	$86.0M	$63.5M	$44.0M
Operating income	$445.0M	$37.1M	−$37.1M	−$21.2M	−$22.0M	−$25.2M	$2.1M
Operating margin	33.33%	8.50%	−19.20%	−11.53%	−20.63%	−42.99%	3.85%
EBITDA	$479.6M	$59.1M	−$23.3M	−$11.7M	−$17.2M	−$23.0M	$3.9M
EBITDA margin	35.93%	13.52%	−12.07%	−6.36%	−16.13%	−39.21%	7.21%
Net income	$472.3M	$52.2M	−$28.4M	−$16.5M	−$22.2M	−$27.5M	$1.3M
Net profit margin	35.37%	11.95%	−14.70%	−8.98%	−20.83%	−46.87%	2.47%
Basic EPSper basic share	$2.65	$0.31	-$0.18	-$0.11	-$0.25	-$0.40	$0.00
Diluted EPSper diluted share	$2.51	$0.29	-$0.18	-$0.11	-$0.25	-$0.40	$0.00

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈9.52%of listed shares

BlackRock, Inc.17.76M shares · Jun 30, 2026

View holders

Top 20 reported holders of CRDO
Holder	% owned
BlackRock, Inc.	≈9.52%17.76M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈4.41%8.22M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈3.99%7.44M shares
Point72 Asset Management, L.P.	≈3.30%6.15M shares
Cheng Chi Fung	≈3.26%6.08M shares
Sutardja, Pantas	≈3.16%5.89M shares
STATE STREET CORP	≈2.26%4.22M shares
GEODE CAPITAL MANAGEMENT, LLC	≈1.73%3.23M shares
Lam Yat Tung	≈1.70%3.17M shares
PRICE T ROWE ASSOCIATES INC /MD/	≈1.43%2.66M shares
JENNISON ASSOCIATES LLC	≈1.42%2.66M shares
SRS Investment Management, LLC	≈1.38%2.57M shares
BANK OF AMERICA CORP /DE/	≈1.17%2.18M shares
Brennan William Joseph	≈1.13%2.12M shares
MILLENNIUM MANAGEMENT LLC	≈1.07%2M shares
FMR LLC	≈0.95%1.77M shares
GOLDMAN SACHS GROUP INC	≈0.84%1.56M shares
Rafferty Asset Management, LLC	≈0.81%1.52M shares
HRT FINANCIAL LP	≈0.74%1.39M shares
SUSQUEHANNA INTERNATIONAL GROUP, LLP	≈0.74%1.39M shares

Percentages use 186.48M shares of this listed class outstanding on Jun 8, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)934$797.85M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 23, 2026Form 4 · 10b5-1	Cheng Chi FungChief Technology Officer	SellOrdinary Shares · indirect	100	$281.05	$28.1K	5.94M
Jun 23, 2026Form 4 · 10b5-1	Cheng Chi FungChief Technology Officer	SellOrdinary Shares · indirect	246	$280.01	$68.9K	5.94M
Jun 23, 2026Form 4 · 10b5-1	Cheng Chi FungChief Technology Officer	SellOrdinary Shares · indirect	154	$277.61	$42.8K	5.94M
Jun 23, 2026Form 4 · 10b5-1	Cheng Chi FungChief Technology Officer	SellOrdinary Shares · indirect	200	$276.42	$55.3K	5.94M
Jun 23, 2026Form 4 · 10b5-1	Cheng Chi FungChief Technology Officer	SellOrdinary Shares · indirect	1.1K	$275.61	$303.2K	5.94M