MarketMoodz
Evercore Sees More Upside for Credo on Copper-to‑Optical Roadmap
Evercore ISI initiated coverage of Credo Technology with an outperform rating and a $325 price target, saying the chip-connectivity firm could still climb about 20% from the prior close. The note points to Credo’s copper-first architecture and a planned optical roadmap — from optical DSPs to silicon photonics and ZeroFlap modules — as the engine for an expanded AI interconnect opportunity.
Key Takeaways
- Credo shares have risen roughly 89% so far in 2026.
- Evercore ISI started coverage with an outperform rating and a $325 price target, implying about 20% upside.
- Analyst Mark Lipacis highlighted Credo’s architecture, construction interconnect standard and a ‘whole cable + chips’ approach as competitive strengths.
- Credo’s roadmap includes optical digital signal processors, silicon photonics, microLED cables and ZeroFlap Optics modules.
- Evercore projects a total addressable market of $5 billion–$10 billion (up to ~20x today), and 21 analysts cover the stock with about 20 rated buy/strong buy.
People Involved
- Mark LipacisEvercore ISI analyst
Entities Involved
- Credo Technology (CRDO)Chip-connectivity company specializing in copper interconnects and expanding into optical solutions
- Evercore ISIInvestment bank and equity research firm initiating coverage
- CNBCNews outlet reporting the initiation
MarketMoodz Analysis
For investors, Evercore’s initiation formalizes a bull case that’s already priced in part: Credo has nearly doubled in 2026, yet the $325 target still implies roughly 20% further upside if the optical roadmap and sales cadence play out. The firm’s copper-first stance addresses near-term cost and power concerns in AI interconnects, while the planned additions — optical DSPs, silicon photonics, microLED cables and ZeroFlap modules — aim to extend Credo’s reach where pure copper stops scaling. If Credo converts design wins into volume shipments, revenue and margins could expand quickly given Evercore’s $5B–$10B TAM estimate.
That upside comes with clear execution and valuation risks. The $5B–$10B TAM projection is aggressive and depends on adoption across hyperscalers and switch vendors; it’s a big leap from Credo’s current market size and based on one research initiation. What matters next: product milestones (sampling and qualification of optical DSPs and silicon photonics), announced customer design wins, visible revenue cadence, and supply-chain scale. Investors should also watch for competitive responses and integration hurdles when moving from copper-only to hybrid copper+optical architectures.
Source: Original Article