$Credo Technology Group Holding Ltd(CRDO)$ Up 25% since earnings, and the setup looks favorable for a bigger re-rate as the CPO TAM ramps. The DustPhotonics acquisition enables full vertical integration: from SerDes IP to DSP, to SiPho PIC, to system, to telemetry. That expands the TAM for transceivers, LPO, and CPO while maintaining strong reliability (ZeroFlap, PILOT).
What matters is they avoid the EML laser shortages affecting $Lumentum(LITE)$ by using CW lasers on PICs. This means fewer lasers, lower thermal load, better yields, and a cheaper BOM at scale.
It's already deployed in hyperscale AI clusters and has designs for NPO and CPO. OFC 2026 showcased the full portfolio: 400G/800G ZeroFlap transceivers, 800G/1.6T DSPs, and a path to 3.2T.
The catalyst path includes FY27 optical revenue over $500M, NPO/CPO design wins, 1.6T ramp, and the 3.2T roadmap. The market hasn't fully priced in SiPho and CPO yet. This one might just be heating up.
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