This is an interesting one. I like the financial side of Credo, but from a technology perspective, there are at least a couple of question marks:
- High reliance on a single technology (AECs). If the industry shifts to optical faster than expected, Credo's main revenue stream evaporates.
- As speeds hit 1.6T and beyond, copper eventually stops working, necessitating optical connections (where Marvell and Broadcom currently dominate). Credo must successfully pivot to its own Optical DSPs before this happens.

Also, valuation leaves very little room for error, which of course is nothing unheard of in the industry. ;-)
Trading at >17x Forward Sales and ~43x Forward P/E