Credo Q1 Growth Persists, But Valuation Keeps Investors Cautious

Credo Technology posted Q1 FY2027 revenue of $479 million (up 10% sequential, 115% YoY) with a 68% non-GAAP gross margin and EPS of $1.20, and guided Q2 revenue of $525–$535 million as it scales AI-infrastructure products like AEC cables, optics and retimers. Yet with four customers delivering about 84% of sales, rising expenses, macro risk and fierce competition, the stock trades around 30x forward earnings, prompting caution even as the growth story remains intact; Zacks rates CRDO a Hold and suggests investors may wait for a more favorable entry point.