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Stock Markets March 17, 2026

Credo Technology Slides 11% Even After Nvidia Signals Need for More Copper and Optical Capacity

Market reaction contrasts with industry leaders' calls for expanded interconnect capacity for AI infrastructure

By Caleb Monroe CRDO ALAB APH LITE COHR
Credo Technology Slides 11% Even After Nvidia Signals Need for More Copper and Optical Capacity
CRDO ALAB APH LITE COHR

Shares of Credo Technology Group dropped sharply despite public remarks from Nvidia's CEO emphasizing the need to expand capacity for both copper and co-packaged optical interconnects. Other copper-focused names saw milder moves, while optical interconnect equities were mixed in the same session. Broadcom’s CEO had made similar capacity comments earlier in the month.

Key Points

  • Credo Technology shares fell 11% on Tuesday despite Nvidia CEO Jensen Huang saying Nvidia will scale with both copper and co-packaged optics and needs significantly more capacity in both.
  • Broadcom CEO Hock Tan made similar capacity-related comments earlier in the month, echoing the industry sentiment on interconnect demand for AI infrastructure.
  • Copper-focused names such as Astera Labs and Amphenol declined about 1% each, while optical-interconnect stocks were mixed: Lumentum rose 3%, Coherent fell 1%, and Corning fell 2%.

Market move

Credo Technology Group (NASDAQ:CRDO) shares fell 11% on Tuesday, even after Nvidia Chief Executive Jensen Huang spoke at the company’s GTC conference on Monday stressing that Nvidia will expand using both copper and co-packaged optics and that substantially more capacity is required in both areas.

Remarks from Nvidia

Mr. Huang told attendees that Nvidia plans to scale with both copper and co-packaged optical approaches and that significantly greater capacity will be needed across these interconnect solutions. Credo supplies high-speed copper and optical interconnect components that are used in the buildout of AI infrastructure, positioning the company within the supply chain referenced by Mr. Huang’s comments.

Industry context

The Nvidia comments echoed similar observations made earlier this month by Broadcom Chief Executive Hock Tan in his company’s earnings report, reinforcing an industry message about demand for additional interconnect capacity.

Peer performance

Other copper-focused stocks showed relative resilience during the session. Astera Labs (NASDAQ:ALAB) and Amphenol (NYSE:APH) each slipped by roughly 1%.

Optical-interconnect-related equities produced a mixed picture. Lumentum Holdings (NASDAQ:LITE) climbed about 3%, Coherent (NASDAQ:COHR) eased roughly 1%, and Corning was down about 2% in the same trading period.

What this reflects

The market reaction was not uniform: while Nvidia’s and Broadcom’s public statements highlighted a need for more capacity in both copper and optical interconnect technologies supporting AI infrastructure expansion, the share-price movements among suppliers ranged from modest declines to gains, with Credo registering a pronounced drop despite being directly connected to the types of products referenced.

Summary takeaway

Public statements from major chipmakers underlined demand-side narratives for interconnect capacity, but investor responses across supplier stocks were varied, with Credo experiencing a notable decline and other players showing smaller moves or gains during the session.

Risks

  • Investor sentiment may diverge from executive statements about demand, creating volatility for suppliers to AI infrastructure - affecting semiconductor and electronic components sectors.
  • Mixed market performance among interconnect suppliers indicates uncertainty in near-term stock reactions even when demand narratives are publicized - impacting technology and hardware supply-chain stocks.
  • Concentration of exposure to both copper and optical interconnect markets could leave individual suppliers more sensitive to stock-market swings unrelated to reported end-market demand - relevant to companies in the networking and AI infrastructure supply chain.

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