Credo $CRDO announced a game-changing acquisition at mid April 2026 that thrusts the company’s outlook into the “light” .

In the view of the Pragmatic Optimist newsletter, Credo’s acquisition of DustPhotonics is highly strategic while delivering a synergistic and accretive uplift to Credo’s FY27. This was the exact moment the Pragmatic Optimist newsletter had been anticipating when they turned bullish on Credo and upgraded the company’s shares early last month. (You can also track the history of the Pragmatic Optimist newsletter ratings in the Thesis Monitor tab in the AI Stock Tracker 2.0 tool)

Credo’s acquisition of DustPhotonics reflects the mad dash for everything optical in the CPO (co-packaged optics) and SiPho (silicon photonics) universe. This is where the money is headed, whether it is capex, opex, or even investment portfolio capital dollars.

 Credo’s acquisition of DustPhotonics, including how The Pragmatic Optimist newsletter model out Credo’s FY27 revenues are where the Pragmatic Optimist newsletter now stand on Credo’s shares.

Very good news: Credo Acquire DustPhotonics

When reviewing Credo last month, the first clue that stood out to the Pragmatic Optimist newsletter was the heightened focus on its ZF (Zero Flap) optical pluggable modules and the strong hints about the coming optical inflection that management had already suggested in last month’s Q3 earnings call with investors :

According to the Pragmatic Optimist newsletter, they see a different composition between copper and optical in fiscal ’27 in the future.

they expect growth in ICs and then the new wave of growth will come with ZeroFlap optics. And within that, IC and AEC will include the PCIe business that we’re earning.

With Credo’s current revenue base meaningfully skewed towards copper-based AECs and the management strongly hinting that a new “wave of growth” would be seen as soon as FY27, they suspected an acquisition would likely come soon to support that “wave of growth” story that management was calling for.

Ultimately, Credo followed the exact acquisition-led growth strategy allowing us to spot Credo’s bullish opportunity early, very similar to how the Pragmatic Optimist newsletter first spotted Marvell’s inflection and upgraded $MRVL shares in December last year ( 2025), while also starting to build a position in the company.

In conclusion we are seeing that the scale of synergy in Credo’s acquisition of DustPhotonics helps Credo’s forward outlook be very promising.