Credo Technology Group to Buy DustPhotonics, Boosting AI Optical Portfolio and FY2027 Growth Outlook

2 weeks ago 7

MarketBeat

Wed, April 15, 2026 astatine 6:22 AM CDT 5 min read

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Credo Technology Group (NASDAQ:CRDO) has entered into a definitive statement to get DustPhotonics, a institution Credo described arsenic a person successful silicon photonics photonic integrated circuit (PIC) technology. The transaction is intended to grow Credo’s optical portfolio and deepen its system-level connectivity offering for AI infrastructure, spanning copper and optical solutions crossed front-end, scale-out, and scale-up networks, executives said connected a league call.

Chief Executive Officer Bill Brennan said the acquisition builds connected Credo’s instauration successful high-speed connectivity, which helium said combines SerDes, DSP, and system-level design. As AI clusters scale, Brennan said requirements for “reliability, power, and show are lone getting tighter,” and the institution is aiming to enactment up of those demands by integrating DustPhotonics’ silicon photonics PICs with Credo’s existing optical DSP and ZeroFlap (ZF) optics platform.

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Brennan highlighted what helium characterized arsenic near-term gross accidental from DustPhotonics’ existing business. He said DustPhotonics has a “strong standalone PIC concern with plan wins astatine starring hyperscalers,” and added that its exertion “simplifies architectures, reduces laser count, and supports higher speeds with a roadmap to 3.2 Tbps.” Brennan said DustPhotonics is expected to go “an further maturation operator for america starting successful fiscal 2027.”

In the Q&A, Brennan said Credo is applying a akin system-level attack successful optics arsenic it has successful progressive electrical cables (AEC). He said that portion AEC is mostly centered connected the DSP, optical transceivers impact aggregate captious components, including the PIC, and that owning much of the stack tin pb to an “optimized system-level design.” He besides said integration could amended margins by eliminating “margin stack” that tin beryllium erstwhile sourcing components externally.

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Brennan besides pointed to what helium called a sizable marketplace accidental for standalone silicon photonics PICs, noting analysts expect a multi-billion-dollar marketplace successful the coming years, and adding that “by 2030, immoderate analysts telephone it a $6 cardinal market.”

The institution said it expects to adjacent the transaction successful the 2nd 4th of calendar 2026. During the call, Chief Financial Officer Dan Fleming said Credo’s forecast for fiscal 2027 has accrued compared with anterior guidance. “The $500 cardinal that Bill referenced, it is supra what we had antecedently guided,” Fleming said, adding that fiscal 2027 gross is present expected to turn “in excess of 75% year-over-year.”

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