Credo Technology (CRDO) to Acquire DustPhotonics for $750M to Support Silicon Photonics Capabilities

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the 10 Best New Stocks to Invest In According to Hedge Funds.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the best new stocks to invest in according to hedge funds. On April 13, Credo Technology Group entered into a definitive agreement to acquire DustPhotonics for ~$750 million in cash and stock, with additional performance-based milestones. This strategic move brings industry-leading Silicon Photonics Photonic Integrated Circuit/SiPho PIC technology in-house, positioning Credo as a vertically integrated provider.

The acquisition allows the company to address the full spectrum of AI infrastructure, spanning from copper to optical interconnects for 800G, 1.6T, and future 3.2T applications. The integration of DustPhotonics’ technology is expected to accelerate Credo’s optical roadmap and reduce reliance on external suppliers. By combining SiPho PICs with Credo’s existing SerDes and Digital Signal Processing/DSP expertise, the company aims to improve AI cluster reliability and energy efficiency.

Credo Technology (CRDO) to Acquire DustPhotonics for $750M to Support Silicon Photonics Capabilities

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These high-speed optical components are essential for hyperscale data centers, with Credo Technology Group Holding Ltd (NASDAQ:CRDO) projecting its optical business will generate over $500 million in revenue by FY27. The transaction is expected to close in the second quarter of calendar 2026, subject to regulatory approvals and customary closing conditions.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) develops high-speed connectivity products and solutions for the data infra market (specifically optical and electrical Ethernet and PCIe applications), including SerDes chiplets, integrated circuits, and electrical cables.

While we acknowledge the risk and potential of CRDO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRDO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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