Credo Technology Group (CRDO) is moving higher today as traders extend the post-announcement rally tied to its agreement to acquire DustPhotonics, a silicon photonics developer aimed at strengthening Credo’s optical interconnect roadmap for AI data centers. The transaction includes $750 million in cash and about 0.92 million Credo shares, plus potential additional shares tied to milestones, and is expected to close in the second quarter of calendar 2026 subject to customary conditions and regulatory approvals.

The acquisition pulls critical silicon photonics photonic integrated circuit (PIC) technology in-house and expands Credo’s positioning across higher-speed optical connectivity markets (including 800G and 1.6T-era buildouts). Management has framed the combined optical portfolio as a path toward more than $500 million in optical revenue in fiscal 2027 and expects the deal to be accretive to non-GAAP EPS in fiscal 2027, which has become the central narrative supporting the stock’s higher valuation.

Near-term catalysts include any updates on regulatory timing, closing mechanics, and integration milestones that validate the fiscal 2027 optical revenue target and margin/earnings accretion expectations. Investors are also monitoring positioning around the deal, including any related financing clarity and whether follow-on customer design wins in hyperscale AI infrastructure translate into sustained order momentum.