Credo Tech’s Big Move: Buying a Silicon Photonics Company

After the stock market closed, Credo Technology made headlines by signing a deal to buy DustPhotonics, a firm that builds silicon‑based photonic chips used in high‑speed optical transceivers. The purchase will give Credo top‑tier silicon photonics integrated circuits (PICs) and broaden its reach in the growing AI infrastructure market. The company plans to merge DustPhotonics’ products with its own ZeroFlap optical transceivers and digital signal processors. Credo will pay $750 million in cash plus about 0. 92 of its own shares upfront, and may issue up to 3. 21 million additional shares if certain financial goals are met later.

According to Credo’s CEO, the alliance marks a major step toward dominating all aspects of AI connectivity. It also pushes the company from a strong electrical‑solution background into leading silicon photonics. With the new combined lineup, Credo expects more than $500 million in optical revenue by fiscal 2027 and anticipates the deal will boost earnings per share that year. The transaction is slated to close in Q2 2026, and the company’s stock rose 6. 4% after hours, trading near $143 on Monday.

Actions