New York, Jan 22, 2026, 14:58 ET — Regular session
- Credo shares dipped roughly 0.6% after the company announced a patent license and mutual covenant deal with 3M
- A Form 4 filing revealed that a trust connected to Credo’s CTO offloaded 30,000 shares via a Rule 10b5-1 plan
- Rosenblatt kicked off coverage at Neutral, setting a $170 target while flagging growing long-term risks
Shares of Credo Technology Group Holding Ltd (CRDO) slipped roughly 0.6% to $138.29 Thursday, following news of a patent license deal with 3M (MMM). The stock fluctuated in a wide range, hitting a low of $132.52 and a high of $144.24 during the session.
The deal highlights Credo’s active electrical cables, known as AECs — copper cables equipped with signal-boosting electronics that connect servers to network switches within data centers.
The niche revolves around building large artificial intelligence clusters, where patent rights often become key leverage points. Investors are working to distinguish between sustainable demand and short-term spikes.
Licensing the AEC patent portfolio is crucial right now as the stock reacts sharply to new headlines — from insider trading reports to analyst doubts about how long Credo’s early advantage can hold up against growing competition.
Credo announced it has struck a patent license and mutual covenant agreement involving its AEC patents, agreeing to license certain patents to 3M. The financial terms were not made public. “I am pleased to have reached an amicable agreement with 3M Company,” said Don Barnetson, Credo’s senior vice president of product. Business Wire
The 3M agreement comes after several patent deals linked to AECs, notably a November licensing pact with the Siemon Company, which also kept its terms under wraps.
A Form 4 filed Tuesday revealed the Cheng Huang Family Trust, linked to CTO and director Cheng Chi Fung, sold 30,000 shares on Jan. 15 under a Rule 10b5-1 plan—a pre-set trading schedule. The shares changed hands at weighted average prices between $149.10 and $164.06, the filing showed.
Rosenblatt kicked off coverage with a Neutral rating and a $170 price target on Wednesday. The firm highlighted a strong near-term growth outlook but noted that this is largely priced in, while longer-term risks are mounting. It pegged the 400G and 800G market—referring to 400- and 800-gigabit-per-second links—at just over $1 billion by 2025. The broker also flagged potential new entrants in 2026 offering lower-power options.
Credo updated investors on Dec. 1, revealing quarterly revenue of $268.0 million and forecasting fiscal third-quarter revenue between $335 million and $345 million. CEO Bill Brennan described the numbers as the company’s “strongest quarterly results” to date, highlighting ongoing expansion of large AI clusters. Credo Technology Group
But the 3M deal makes the short-term financial outlook tricky to pin down, and patent agreements don’t always lead to significant licensing revenue. Should major cloud players ramp up pricing pressure or accelerate their move toward optical links, growth driven by cables could slow sharply.
Credo’s upcoming earnings report is expected March 3 after markets close, according to calendar estimates—though the company hasn’t officially set the date. Investors will be watching closely for updates on the 3M license, any new patent developments, and whether current guidance remains intact.
