$CRDO
is up 7% today on reports that the U.S. could restrict Chinese optical transceivers starting at 3.2T.
Here's why Credo is set up well for this:
In May, Credo closed its $750M acquisition of DustPhotonics. That gave it silicon photonics in-house, built for 800G, 1.6T, and 3.2T, including co-packaged optics.
Add Credo's own DSPs and SerDes, and it now has a full non-Chinese optical stack. If hyperscalers and module makers need to move away from Chinese suppliers at 3.2T, Credo has the pieces they need.
And if optics supply gets tight, more short links stay on copper. That's Credo's AEC business.
Management already said its optical lines should top $600M next year, and that was before this.
LONG
$CRDO
is up 7% today on reports that the U.S. could restrict Chinese optical transceivers starting at 3.2T.
Here's why Credo is set up well for this:
In May, Credo closed its $750M acquisition of DustPhotonics. That gave it silicon photonics in-house, built for 800G, 1.6T, and 3.2T, including co-packaged optics.
Add Credo's own DSPs and SerDes, and it now has a full non-Chinese optical stack. If hyperscalers and module makers need to move away from Chinese suppliers at 3.2T, Credo has the pieces they need.
And if optics supply gets tight, more short links stay on copper. That's Credo's AEC business.
Management already said its optical lines should top $600M next year, and that was before this.
LONG
$CRDO