Goldman Backs Credo's Copper Cables in AI Data Centers

0:00On March 1st, here's the latest out of Durham. Goldman Sachs just launched coverage on credo technology with a by rating and a price target of $165. That suggests about 27% upside from recent prices. The stock has already climbed 180% in 2025, fueled by surging demand for AI data center gear. This move spotlights a key debate in AI infrastructure. Can copper cables hold their ground against faster optics? Goldman bets yes, at least for several more years. For short links inside server racks, copper offers big perks like lower cost, up to 50% less power use, and rock solid reliability to avoid, costly disruptions in AI training. Wall Street is paying close attention since credo dominates the market for high speed active electrical cables. These connect GPUs from Nvidia, Amazon, Microsoft, and Meta, right within massive clusters. The company pulls revenue from four of the top five US hyperscalers and the fifth is starting to ramp up production.

1:04Numbers back the buzz. In the latest quarter, revenue soared 272% to $268 million, beating forecasts and lifting shares. 10%. For fiscal 2026, analyst project about $1.19 billion in sales, with Goldman even sunnier on earnings into 20. 27. Rists linger, like quicker shifts to optics or tougher competition, plus heavy reliance on a few big customers. Still, Goldman sees strong upside potential as hyperscaler spending could hit over $533 billion next year. Credo is also branching into new tech, like optical transceivers to keep growing. This DNN story comes to you thanks to our sponsor. A pillow that sounds as good as it feels, built for listening in bed, S-O-L-L-I-SOLY-PLO-DOT-COM.