Credo Technology Group Holding LtdCRDO
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Fortinet Fair Value Raised to US$163.13 as Analysts Lift Price Targets
Fortinet's modeled fair value has been reset from US$119.92 to US$163.13, according to Simply Wall St, as analysts lifted their price targets on strong demand. Several firms, including TD Cowen, BTIG, RBC Capital, Barclays, UBS, and Citi, raised their Fortinet price targets into a US$170 to US$215 range, citing strong Q2 results, billings and product trends, and AI-related demand for networking and security. Morgan Stanley upgraded Fortinet to Equal Weight from Underweight with a higher US$133 target, saying hardware demand tied to AI preparedness had been underestimated. On the bearish side, Wedbush and Wells Fargo flagged valuation as a key watchpoint, with Wedbush arguing the stock already reflects a best-case scenario, while HSBC and JPMorgan stayed cautious with Reduce and Underweight ratings respectively, HSBC carrying a US$102 target. The fair-value model's revenue growth assumption rose from 11.69% to 13.25%, its net profit margin from 27.17% to 29.57%, its future P/E from 36.45x to 45.46x, and its discount rate from 8.54% to 8.58%.
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Nvidia Commits $6.5 Billion to Photonics as AI Optical Market Eyes Ninefold Growth
Nvidia has committed at least $6.5 billion to photonics companies over the three months prior to May 2026, including $500 million to Corning for advanced optical connectivity solutions and $2 billion each to Lumentum, Coherent and Marvell, according to CNBC. The impact has been significant, with Marvell shares gaining 183.4% year to date, while Lumentum, Corning and Coherent have advanced 142.5%, 68.8% and 60.3%, respectively. Goldman Sachs projects the total addressable market for optical networking to grow from roughly $15 billion in 2026 to about $154 billion by 2028, a more than ninefold increase. Adoption of co-packaged optics is expected to accelerate starting in 2027, reaching roughly 20% to 30% penetration by 2028, while Mordor Intelligence estimates the global photonics market will reach $1.46 trillion by the end of 2026. Investors seeking diversified exposure can consider the Roundhill Photonics & Optics ETF LYTE, with $254.2 million in assets under management across 19 holdings; the KraneShares Photonic and Optical ETF LUMA, with $9.76 million in net assets; and the Tema Photonics & Optical ETF LAZR, with $94 million in net assets across 27 companies.
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Amphenol AI Datacom Sales Surge 89% as CommScope Adds $1.2 Billion
Amphenol's IT datacom business, which represented 43% of the company's total sales in the second quarter of 2026, saw revenues surge 89% year over year and 63% organically, with management saying the AI revenue run rate has reached roughly $10.5-$11 billion. Management noted that virtually all of the 22% sequential IT datacom growth in the quarter came from AI-related products, as customers require more copper, optics and power for larger, more complex AI clusters. The company's acquisition of CommScope contributed more than $1.2 billion in sales in the quarter, with CommScope's IT datacom business nearly doubling year over year; management expects that market to account for just under half of CommScope's 2026 sales, compared with roughly one-third in 2025. Amphenol faces tough competition from TE Connectivity, whose Digital Data Networks sales rose 34% year over year in the third quarter of fiscal 2026 with bookings up more than 70% year to date, and from Marvell Technology, whose data-center revenues increased 46% year over year to $2.17 billion in the second quarter of fiscal 2027. Amphenol shares have risen 16% year to date, trailing the broader Zacks Computer and Technology sector's 17% gain, and trade at a forward 12-month price/earnings of 25.32X versus the sector's 20.38X, while the Zacks Consensus Estimate for earnings stands at 72 cents per share, up 5 cents over the past 30 days and implying 53.19% growth.