Credo Technology Group Holding Ltd (CRDO) Acquires DustPhotonics in $750M Deal

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the best data center stocks to buy right now. On April 13, Credo Technology Group Holding Ltd (NASDAQ:CRDO) announced a definitive agreement to acquire DustPhotonics, a developer of Silicon Photonics Photonic Integrated Circuit (PIC) technology for optical transceivers. The deal is valued at $750 million in cash and 0.92 million shares of Credo stock, with additional contingent consideration of up to 3.21 million shares tied to financial milestones.

Credo Technology Group Holding Ltd (CRDO) Acquires DustPhotonics in $750M Deal

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Founded in 2017 and based in Israel, DustPhotonics specializes in Silicon Photonics PICs spanning 400G, 800G, and 1.6T, with a roadmap to 3.2T. The company employs about 70 people and operates a fabless model, making it a strategic fit for Credo’s connectivity solutions in AI, cloud, and hyperscale networks.

The acquisition will bring DustPhotonics’ technology in‑house, enhancing Credo’s portfolio of optical transceivers, DSPs, and photonics products. Credo expects the combined portfolio to generate over $500 million in optical revenue by fiscal 2027 and be accretive to non‑GAAP EPS.

The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and customary conditions, marking a significant expansion of Credo’s role in next‑generation optical networking.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a semiconductor company that provides high-speed connectivity solutions for data center, AI, and enterprise networking markets. They develop chipsets, specialized cables, and IP that increase bandwidth, reduce power consumption, and improve data transfer speeds for AI infrastructure, hyperscalers, and optical networking.

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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