ℹ️ How are these calculated?
🎯 Investment Thesis
Credo dominates AECs with 75-88% market share — the critical 'last meter' connecting GPUs in AI data centers. Just pre-announced Q3 revenue of $404-408M (well above guidance) and raised FY2026 outlook, guiding 'more-than-triple' revenue growth over next 2 years. Forward PE compressed to 30x from 117x trailing as earnings catch up. Blue Heron 224G retimer and new optical DSPs launching. At 40% below ATH ($214), still the best risk/reward entry in AI connectivity.
⚠️ Key Risk
30x forward PE (trailing 117x) as earnings catch up to stock price. Revenue concentrated in 2-3 hyperscaler customers. Roth Capital lowered PT from $250 to $200 despite maintaining Buy. Rosenblatt initiated at only Neutral ($170). If optical beats copper at rack-scale, thesis breaks entirely.
By The Numbers
Event Impact
75-88% AEC market share. Essential for GPU-to-GPU communication in AI clusters.
No exposure to energy or defense.
No quantum relevance.
Negligible China exposure. US hyperscaler customers.
At 30x PE, some rate sensitivity but zero debt and strong growth offset concerns.
No energy grid relevance.
No significant fiscal exposure.
Price Targets
Upcoming Catalysts
Competitive Landscape
Company Background
Founded in 2008 by a team from Marvell. Their AEC cables solved a critical problem — connecting GPUs across short distances more reliably and cheaply than optical fiber.