On June 18, Credo Technology rose 5.08% in regular trading, trading at $260.99/share, with turnover of $464 million. The stock gained momentum as the broader optical communication sector rallied following a key industry catalyst.

On the news front, optical communication leader Coherent broke ground on a factory expansion in Sherman, Texas, aimed at boosting 6-inch indium phosphide (InP) wafer capacity to support high-speed optical communication components. According to LightCounting data, InP represents the largest segment of the optical chip market, accounting for 58% of the total market in 2025 and projected to reach approximately $6.9 billion by 2031. Over 80% of current InP demand originates from AI data centers. The broad sector rally saw Marvell Technology up 9.46%, Micron up 6.67%, and Intel up 7.2%.

Credo Technology had previously pulled back on sustained share sales by CFO Daniel Fleming and short-term profit-taking pressure. With sector tailwinds, multiple analyst target price upgrades, and fourth fiscal quarter revenue growth of 157% year-over-year providing fundamental support, the stock extended its technical recovery.

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