Credo Tech Plunges After Strong Q1 as Retail Bets on Turnaround

Credo Technology Group beat on fiscal Q1 with $1.20 adjusted EPS on $479 million revenue, up 115% year over year, posting record net income and solid margins (68% gross, 48.2% operating). For fiscal Q2, management guided $525–$535 million in revenue (about 9–12% seq. growth); CFO Mark Fleming signaled an inflection in H2 FY2027 with optical revenue exceeding $600 million and total revenue growth above 85% for the year. Despite the beat, CRDO slid about 8.6% in regular trading and fell further after hours as investors weighed growth pace and valuation. Retail traders on StockTwits were notably bullish, viewing the drop as a potential buying opportunity amid Credo’s AI connectivity focus and ongoing competition in the AI interconnects space.