Credo's CTO Sold 31,290 Shares. His Remaining $1.6 Billion Stake Tells the Real Story
Cheng Chi Fung executed sales under a pre-arranged Rule 10b5-1 trading plan, retaining a $1.56 billion stake in the chipmaker.
Overview
Cheng Chi Fung, the chief technology officer of Credo Technology Group Holding Ltd (NASDAQ:CRDO), sold 31,290 ordinary shares on July 7 and July 8, according to an SEC Form 4 filing.
Credo Technology Group is a specialized semiconductor company. The company's competitive advantage derives from its proprietary serializer/deserializer (SerDes) technology platform, which addresses the critical infrastructure demands of high-speed connectivity in modern data centers and telecommunications networks. Credo operates as a fabless semiconductor designer focused on delivering differentiated solutions for the rapidly expanding optical and electrical Ethernet markets.
This sale ultimately looks like a rounding error for this billionaire executive. The shares moved under a 10b5-1 plan the family trust adopted back in September 2025, and 31,290 shares works out to roughly half a percent of a position still worth $1.56 billion. When a co-founder keeps more than 6 million shares after a 177% run, the signal is closer to conviction than caution. Cheng built the SerDes technology this company runs on, and his stake was never going anywhere fast.
Details
The results explain why. Revenue more than tripled to over $1.3 billion in fiscal 2026, and non-GAAP net income jumped more than fivefold to $662 million as AI data center buildouts soaked up Credo's connectivity products. CEO Bill Brennan called fiscal 2026 "another defining year for Credo," and guidance calls for $465 million to $475 million in revenue next quarter, another sequential step up from the fourth quarter's $437 million.
For long-term investors, the insider activity here is noise. The real question is price: after a 177% gain, the stock bakes in years of near-flawless execution, and any wobble in AI capital spending would hit a name like this hard.
Source
Originally published at www.fool.com.