Credo Technology Group Holding Ltd. shares fell 0.05% to $165.13 in Thursday premarket trading after plunging 20.04% in the previous session, as investors balanced strong AI-related demand against margin pressure and higher costs. The company reported fiscal 2027 first-quarter revenue of $479 million, above the $471.77 million estimate, while adjusted earnings of $1.20 per share exceeded the $1.17 estimate. GAAP gross margin declined to 64.5% from 68.2% in the prior quarter, and GAAP operating expenses more than doubled to $188.4 million from $89.6 million. CEO Bill Brennan said AI infrastructure spending is driving demand for Credo's copper and optical connectivity products, while management expects optical revenue to exceed $600 million in fiscal 2027. The company also expects fiscal 2027 revenue growth of more than 85%, with further expansion into fiscal 2028 and beyond. Credo's products are held by three listed ETFs, and the stock has a consensus Buy rating with an average price forecast of $273.07.