- Credo Technology Group launched three new high-speed optical products aimed at AI data centers on Tuesday.
- NVIDIA CEO Jensen Huang stated that the company will continue using both copper and optical solutions in future hardware, a move seen as a “bullish signal for Credo” by one analyst.
- Despite the product announcements and positive industry commentary, CRDO stock fell nearly 12% amid concerns over the pace of adoption for optical technologies.
- Retail sentiment on Stocktwits around CRDO shares shifted dramatically from bearish to bullish following the news.
Credo Technology Group unveiled a trio of advanced optical connectivity products on Tuesday, targeting the escalating demands of Artificial Intelligence infrastructure in data centers. The launches included the Robin 800G Optical DSP family, a low-power 1.6T DSP called Cardinal, and 800G ZeroFlap optical transceivers designed to enhance AI cluster performance.
However, investor reaction was negative as CRDO shares dropped nearly 12%. This decline reflected market concerns over a potential slowdown in the industry’s shift toward optical technologies. Concurrently, Nvidia CEO Jensen Huang addressed the GTC 2026 conference about his company’s interconnect strategy.
Huang stated that Nvidia will employ both copper and co-packaged optics in upcoming chip and GPU launches like the Vera Rubin Ultra. Consequently, this reaffirmation of a dual-path approach was interpreted as supportive for optical specialists. According to a report from Seeking Alpha, BNP Paribas analyst Karl Ackerman called the move a sensible option and a bullish signal for Credo.
Meanwhile, retail investor sentiment experienced a significant surge on the Stocktwits platform. Message volumes around CRDO jumped from extremely low to high levels within 24 hours. One user on the platform labeled CRDO a growth stock with a proven path to profitability, predicting a share price of $200.
Furthermore, shares of other companies connected to Nvidia, such as Lumentum Holdings and Coherent Corp., saw gains of about 5% and 0.7%, respectively. CRDO stock has gained more than 118% over the past year, despite the recent sell-off following the product announcements.
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