Credo: Paying A Premium For A Runner-Up

Credo Technology remains rated "sell" due to persistent overvaluation and heightened execution risk despite a recent 33% drawdown. CRDO's growth is shifting from high-margin Active Electrical Cables to lower-margin optics, where it faces strong competition and integration risks from the DustPhotonics acquisition. Customer concentration remains acute, with the top 2 customers at 61% of sales and no long-term purchase commitments, amplifying revenue risk.