Technology

Why CRDO Stock Is Back in Focus After BofA’s AI Forecast

Jul 9, 2026 at 1:47 pm

CRDO stock gained attention after Bank of America forecast that global AI infrastructure spending could reach $1.5 trillion by 2027
Credo continues to benefit from rising demand for AI networking, with revenue expected to grow sharply over the coming years
CEO Bill Brennan says copper and optical networking will grow together, while the company’s ZF Optics business is becoming a key growth driver

For most of the AI boom, the spotlight has stayed on chipmakers like Nvidia. But building an AI data center takes more than powerful GPUs. Those chips need to communicate with each other at incredibly high speeds, and that’s where networking companies come in. CRDO stock has started drawing brand new attention after Bank of America revealed the sector as one of the biggest winners from the next phase of AI infrastructure spending.

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CRDO Stock Is Riding Demand for AI Networking

CRDO stock has been climbing as Credo is viewed as one of the biggest beneficiaries of the next wave of AI infrastructure spending. The shares have gained more than 150% over the past year. This shows growing investor confidence that networking companies will play a bigger role as hyperscalers expand their AI data centers.

Bank of America recently said global AI infrastructure spending could climb to $1.5 trillion by 2027, with networking expected to account for a growing share of that investment. Analyst Vivek Arya pointed to companies like Credo as demand spreads beyond GPUs and into the hardware that keeps AI systems connected.

BofA expects global AI infrastructure capex to reach $1.5T by 2027, up 30–50% YoY

Analyst Vivek Arya expects renewed momentum in 2H26 from memory ($MU), compute ($AMD, $INTC), and semicap ($AMAT, $LRCX, $KLAC, $TER), optics ($MTSI) and networking ($CRDO, $MRVL) pic.twitter.com/UepkOzQrib
— Daniel Romero (@HyperTechInvest) July 8, 2026

This comes as an important shift. The first wave of AI spending was all about computing power. The next wave is about moving data quickly and efficiently across thousands of chips.

Credo has emerged as one of the companies benefiting from that trend. Its active electrical cables and optical connectivity products are designed for the high-speed networks used in modern AI data centers.

Speaking at the Bank of America Global Technology Conference in June, CEO Bill Brennan dismissed the idea that copper and optical technologies are competing against each other. His view is that both will continue to grow as hyperscalers expand their AI infrastructure. He also said Credo’s ZF Optics business could generate more than $600 million in revenue next year. This would make it one of the company’s fastest-growing businesses.

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Credo Has Strong Revenue Momentum

The numbers back up the story. Credo generated about $1.3 billion in revenue in its latest fiscal year, and TIKR estimates put this year’s figure at roughly $2.4 billion. Longer-term forecasts point to revenue approaching $6.8 billion by 2031.

The company also recently reported 157% year-over-year revenue growth, another sign that demand for AI networkingas s hardware remains strong.

Investors are looking at how the CRDO stock is becoming bigger than one earnings report. As AI infrastructure spending moves beyond chips and into the networks that connect them, Credo looks like it is well placed to benefit from that next stage of investment.

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