Credo: Why I'm Buying Again (Rating Upgrade)

Credo delivered 115% revenue growth, while management expects 85%+ FY2027 growth and more than $600 million optical revenue. AEC growth is normalizing, but DSPs, silicon photonics, and ZeroFlap Optics are becoming Credo's next major growth engines. Non-GAAP gross margin remained 68%, while a 25% inventory increase creates an important test for the second-half optical ramp.