SAN JOSE, Calif. - Credo Technology Group Holding Ltd (NASDAQ:CRDO) announced Wednesday that it has completed its acquisition of DustPhotonics, according to a press release statement. The stock has surged 253% over the past year and trades near its 52-week high of $233.70, reflecting investor enthusiasm for the company’s expansion strategy.
DustPhotonics provides silicon photonics photonic integrated circuit technology for optical connectivity. The acquisition adds capabilities across 800G, 1.6T, and 3.2T near-packaged optics and co-packaged optics to Credo’s existing portfolio.
The combined technology stack includes SerDes, digital signal processing, silicon photonics, and system integration for electrical and optical interconnects.
Credo stated it expects its combined portfolio of optical transceivers, optical DSPs, and silicon photonics products to become a growth driver in fiscal 2027. The company posted impressive revenue growth of 226% in the last twelve months and maintains a gross profit margin of 67.83%. According to InvestingPro analysis, which tracks over 1,400 US equities with comprehensive research reports, the stock currently appears overvalued relative to its Fair Value estimate—a key consideration for investors evaluating the acquisition’s impact.
"I am thrilled to officially welcome the talented team from DustPhotonics to Credo," said Bill Brennan, President and CEO of Credo. "Today marks an important milestone as we join two deeply skilled organizations united by a shared commitment to innovation, execution, and customer impact."
Ronnen Lovinger, who joined Credo as Vice President of Silicon Photonics following the acquisition, stated that silicon photonics technology addresses bandwidth and efficiency requirements for infrastructure applications.
Credo manufactures high-speed copper and optical interconnect products for data infrastructure. The company’s product portfolio includes active electrical cables, optical transceivers, memory solutions, and retimers and DSPs for optical and copper Ethernet and PCIe.
The press release did not disclose financial terms of the acquisition or the timeline for integration of DustPhotonics operations.
In other recent news, Credo Technology Group Holding Ltd. has been the focus of several analyst upgrades and partnerships. Stifel raised its price target for Credo Technology to $250, maintaining a Buy rating, driven by anticipated results exceeding revenue estimates of $430 million and non-GAAP EPS of $1.02, due to AEC ramps at multiple hyperscalers. Jefferies also increased its price target to $225, following Credo’s acquisition of DustPhotonics and projected optics revenue exceeding $500 million by fiscal 2027. Rothschild Redburn initiated coverage on Credo with a Buy rating and a price target of $206, emphasizing the company’s core business in AEC cables.
Additionally, Credo announced a collaboration with Rebellions to integrate its ZeroFlap active electrical cables into Rebellions’ RebelPOD AI cluster architecture, enhancing connectivity stability for AI inference workloads. Credo is also set to participate in TSMC’s 2026 Technology Symposium series, showcasing its memory solutions across multiple global events. These developments highlight the ongoing strategic initiatives and market interest surrounding Credo Technology Group.
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