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Just For You Why Credo and Astera Soared After Oracle and Broadcom's EarningsWritten by Leo Miller. Originally Published: 3/17/2026. 
Key Points - Credo Technologies and Astera Labs are two niche players in the semiconductor and AI ecosystem, providing specialized connectivity solutions.
- Their shares have gone on huge runs, both up more than 70% in the past 52 weeks.
- Earnings from Oracle and Broadcom injected significant gains into both stocks recently, highlighting two dynamics that are key for investors to understand.
- Special Report: Elon Musk's $1 Quadrillion AI IPO
Credo Technology (NASDAQ: CRDO) and Astera Labs (NASDAQ: ALAB) are among the fastest-growing beneficiaries of the artificial intelligence (AI) data-center buildout. As key suppliers in the data-center ecosystem, results and commentary from upstream players are vital for assessing Credo and Astera's prospects. Hyperscaler Oracle (NYSE: ORCL) and custom AI semiconductor stock Broadcom (NASDAQ: AVGO) are prime examples. San Francisco is the strangest city in America right now—you can hop into a self-driving car and be chauffeured by a robot, but out the window you see addicts slumped in doorways, open-air drug markets, the mentally ill screaming at the sky, and entire city blocks consumed by homeless encampments. It's ground-zero for the most disruptive technological forces of our age, and Erez lives in the Bay Area plugged into the capital, the connections, and the companies reshaping the world—the advancements in AI, blockchain, computing, and biosciences are unlike anything the world has seen before, and a tsunami of disruption is coming for everything all at once. During our most recent broadcast, we exposed what we're calling the most asymmetric opportunity of our careers: an overlooked financial company hiding a multi-billion-dollar blockchain asset Wall Street hasn't priced in—it's one of those rare situations Warren Buffett would describe as raining gold when all you have to do is step outside if you want to get rich. Watch the broadcast before the window closes now Both companies recently reported earnings. Their better-than-expected results and commentary helped CRDO and ALAB rally. Below, we break down why — understanding where CRDO and ALAB sit in the data-center ecosystem is key to following their paths forward. How Credo and Astera Power AI Data Center Connectivity Credo and Astera sit squarely in the AI infrastructure networking bucket. Their products connect processing chips, like NVIDIA (NASDAQ: NVDA) GPUs, enabling those chips to communicate and coordinate workloads. Credo's primary product is its HiWire active electrical cable (AEC). These copper-based AECs support much longer runs than traditional passive copper cables while preserving signal integrity; they also consume less power and cost less than many optical alternatives. Astera's smart retimers deliver similar benefits via chips instead of cables. While Astera offers AECs as well, smart retimers are its largest revenue source. More data centers translate into more networking equipment, expanding the addressable market for both companies. This is why these stocks rose 3.2% and 7.1%, respectively, after Oracle's latest earnings report. Oracle's Data Center Capacity Ramp Signals Faster Infrastructure Demand Oracle significantly beat growth estimates, driven by strong performance in Oracle Cloud Infrastructure — a sign that infrastructure demand is outpacing expectations. Oracle brought 400 megawatts of data-center capacity online in the quarter and said the pace of expansion will accelerate. It plans to add 10 gigawatts (10,000 megawatts) of capacity over the next three years. That implies roughly 3.3 gigawatts per year, about double the 1.6-gigawatt annual run rate (400 megawatts per quarter) Oracle just delivered. Faster data-center buildouts are a clear positive for Credo and Astera, which provide critical connectivity inside these facilities. This isn't to suggest Oracle is necessarily a customer of Credo or Astera, but the accelerating pace of deployment is a rising tide that should help both companies. AVGO Supports CRDO and ALAB's Runway with Copper Forecast More data centers are a positive, but the picture is more nuanced. Credo and Astera's primary revenue drivers are copper-based products. Optical solutions—transmitting data with light rather than electricity—can handle higher bandwidth but are often costlier and can consume more power. For that reason, many data-center operators will continue to favor copper where it meets their needs. This dynamic contributed to Credo and Astera receiving sizable boosts after Broadcom's earnings release, with the two stocks jumping 11.9% and 5.5%, respectively. The rallies followed comments from Broadcom CEO Hock Tan about the copper-versus-optical debate. Tan said operators tend to use optical networking in "scale-out" architectures, where servers are placed next to each other and connected. By contrast, "scale-up" architectures—where more processing chips are packed into each server—are where Credo and Astera mainly compete, although both companies also offer scale-out solutions. Tan expects that even in 2028, many of Broadcom's scale-up customers will still be using copper. He noted that copper technology remains adequate enough that customers don't need to rush to advanced optical solutions like co-packaged optics (CPO) today. CPO integrates optical networking components directly with processing chips. Widespread CPO adoption would be a longer-term threat to CRDO and ALAB, so the prospect of a slower-than-expected CPO rollout is a near-term positive for them. Because Broadcom is a leader in CPO, Tan's caution about the timeline is less likely to be purely self-interested and therefore adds credibility to his view. Greater copper usage supports CRDO and ALAB's near-term growth prospects. At the same time, both firms can continue developing their optical offerings to prepare for any future shift away from copper. CRDO & ALAB: Niche Players Benefiting From the Data Center Boom Taken together, Oracle's capacity ramp and Broadcom's comments on copper vs. optical support the bullish near-term case for CRDO and ALAB. Investors should monitor how the balance between copper and optical networking evolves, as it will materially affect these companies' trajectories. That said, there are notable risks. Customer concentration is a major one: in 2025, five customers accounted for 84% of ALAB's revenue. CRDO is even more concentrated — two customers represented 87% of revenue last quarter. If spending from one or two large customers slows, both companies could be significantly affected. | 
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