Why Credo Stock Popped Today

By Joe Tenebruso – Apr 14, 2026 at 10:10PM ESTKey PointsCredo is making a big move into silicon photonics.Management sees over $500 million in optical revenue in fiscal 2027.Shares of Credo Technology Group (CRDO +18.73%) rose sharply on Tuesday after the provider of high-performance connectivity solutions for artificial intelligence (AI) data centers made a game-changing acquisition. Image source: Getty Images. A smart buy Credo struck a deal to acquire DustPhotonics, a leading developer of microchips that use optical components to transmit data via light rather than electricity. DustPhotonics integrates multiple optical functions onto a single chip, thereby improving manufacturing yields, increasing reliability, and reducing costs. "Combining forces with DustPhotonics marks a defining step in Credo's strategy to lead across the full spectrum of AI connectivity," Credo CEO William Brennan said in a press release. "We've built a strong position in high-speed electrical solutions, and this move decisively expands that leadership into silicon photonics." ExpandNASDAQ: CRDOCredo Technology GroupToday's Change(18.73%) $25.16Current Price$159.52Key Data PointsMarket Cap$25BDay's Range$149.00 - $163.6852wk Range$33.04 - $213.80Volume19MAvg Vol7.1MGross Margin67.83% Under the terms of the agreement, Credo would purchase DustPhotonics for $750 million in cash and 0.92 million shares of its stock, plus an additional 3.21 million shares if certain financial milestones are achieved. The deal is projected to close in the second quarter, subject to regulatory approvals. Credo expects the acquisition to add to its adjusted earnings per share beginning in fiscal 2027. Establishing a beachhead in a booming market Acquiring DustPhotonics would strengthen Credo's position within the rapidly expanding global optical industry. DustPhotonics is a leader in a segment of this market that will approach $6 billion by 2030, according to research firm LightCounting. For its part, Credo sees its optical revenue growing to more than $500 million in fiscal 2027.Read NextMar 21, 2026 •By Micah ZimmermanGot $1,000? This Under-the-Radar AI Stock Could Be a Future 10-BaggerApr 14, 2026 •By Keithen DruryNvidia's Stock Is Up Over 1,100% Since 2023, And It Just Might Be Getting StartedApr 14, 2026 •By Marc Guberti3 AI Stocks That Can Outpace the S&P 500 for the Next 5 YearsApr 14, 2026 •By Keith NoonanWhy IonQ Stock Skyrocketed TodayApr 14, 2026 •By James BrumleyHeading Into the Heart of Q2, These Are the 3 Artificial Intelligence (AI) Stocks I Want to OwnAbout the AuthorJoe Tenebruso is a contributing Motley Fool stock market analyst with more than 3,000 financial bylines to his name. Joe was an investment analyst for Stock Advisor, Income Investor, Crypto Society, and other top-rated investing services. He also managed Tier 1 Investments, a market-crushing real-money portfolio with 24.58% annualized returns. Joe graduated summa cum laude from Rutgers University with a Bachelor of Science in Finance.TMFGuardianX@Tier1InvestorStocks MentionedCredo Technology GroupNASDAQ: CRDO$159.52(+18.73%)+$25.16*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.