Is CRDO Stock Worth Buying as Growth Outruns Its Premium Valuation?

Credo Technology (CRDO) expects fiscal 2027 revenue growth exceeding 85% with expanding optical business becoming a second growth engine alongside its core Active Electrical Cables. However, the stock trades at a significant premium (11.1X forward sales vs. 5.0X sub-industry average) and faces execution risks due to high customer concentration, with the top two customers accounting for 61% of Q1 revenues. The company carries a Zacks Rank #3 (Hold) rating despite strong growth and margin profiles.