Not Nvidia. Not Micron. This Little-Known Chip Stock Is the AI Boom's Best-Kept Secret.
2026-10-23 13:45
•Micah Zimmerman •The Motley Fool
•••••••• ••• Axe Cap view
Credo Technology: The Quiet AI Infrastructure Play
Credo's niche in data center connectivity could make it a rare winner in the AI hardware upgrade cycle.
South African investors tend to focus on obvious growth stories like Naspers or Prosus when talking AI. Yet, Credo Technology Group (CRDO), a smaller player listed abroad, deserves attention for something different: underpinning the AI hardware boom with critical connectivity chips and cables. Their recent leap into silicon photonics—using light instead of copper for faster data flow—could make them indispensable as data centers race to support AI workloads. While the JSE lacks a direct equivalent, local investors can keep an eye on USD/ZAR since interest in AI infrastructure abroad tends to buoy tech-linked currency flows. Credo's past three years of share price growth may stall amid global tech volatility, but their innovative edge looks promising. That said, if the shift to optical tech is slower than expected or hyperscale data center budgets tighten, CRDO could struggle. this is just our opinion and not financial advice
Watch Credo for an entry point as the AI infrastructure upgrades accelerate, but keep positions moderate due to execution risks. In South Africa, lean towards currency plays like USD/ZAR appreciating if offshore tech picks up.
- CRDO
- USD/ZAR
- Delayed adoption of optical connectivity in data centers
- Global tech sector volatility impacting smaller stocks like CRDO
6/10
Credo Technology Group (CRDO) designs connectivity chips and active electrical cables that link AI accelerators in data centers. The company's stock has tripled over three years while remaining relatively unknown. In October 2026, Credo unveiled a 1.6-terabit optical cable using silicon photonics technology acquired from DustPhotonics, positioning itself for a transition from copper to optical connectivity in data centers.
Our take is based on reporting first published by The Motley Fool.