Credo Technology: Cheap On Sales, Not So Cheap On Profit
Credo Technology has reported significant revenue growth driven by increased demand for copper cables in AI data centers. While the company anticipates continued growth, guidance suggests a normalization in the rate of increase. Additionally, although operating margins have improved, future margin compression is expected.
- ▪Credo Technology achieved a 206% year-over-year revenue growth, reaching $1.335 billion.
- ▪The company expects a quarterly growth of 7% in Q1, with optics revenue projected to exceed $600 million in FY27.
- ▪Non-GAAP operating margins increased from 8.5% to 48%, but margin compression is anticipated moving forward.
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