CREDO TECHNOLOGY (+) : Thoughts From The Road

研报英文原文证据摘录

CREDO TECHNOLOGY (+) : Thoughts From The Road

EQUITIES

IT HARDWARE

CREDO TECHNOLOGY OUTPERFORMPRICE* USD271.8  TARGET PRICE USD275 (UPSIDE 1%)

FLASH NOTE

Thoughts From The Road

22 JUNE 2026 Securities Research Report Production time: 05:37* (London time)

Research Analyst & Publishing Entities

Karl Ackerman, CFA BNP Paribas Securities Corp (1) (+1) 415 846 1575 karl.ackerman@us.bnpparibas.com

What Happened?

Last week, we had the opportunity to host Credo’s executive team and investors for group meetings in Paris, including

Bill Brennan, President and CEO; Dan Fleming, CFO; and Dan O’Neil, IR. The discussions were focused on the upgrade

cycle and longevity of AECs, Credo’s optical growth opportunity, and customer expansion. .

BNPP View:

We continue to view Credo as a key beneficiary of hyperscalers adopting innovations in copper and optical interconnects

for both scale-out and scale-up backend networks, as well as frontend network deployments driven by agentic AI.

Indeed, we believe AECs, ZF optical transceivers, silicon photonics, Active LED Cables (ALCs), and OmniConnect

gearboxes expand Credo’s TAM to over $10B, or 3x from Credo’s opportunity just 18 months ago

Key Takeaways:

- Growth outlook: Credo highlighted that their optical expansion is not meant to signal a decline in the short-reach

copper interconnect market. Instead, their expansion into optical is an expansion of the company’s interconnect

TAM and SerDes moat. Recall Credo highlighted that approximately half of the 80% Y/Y growth in FY27 will come

from optics with the other half coming from AECs.

- Customer Expansion: We believe Credo is increasingly diversifying its customer base with 3-4 10% hyperscale

customers expected in FY27. We also expect Neoclouds could approach 20% of sales over time.