Credo Technology shares fall despite new product launch

Credo Technology Group shares dropped 5.3% in morning trading on Monday to $205.17 after the company unveiled a new product at the OCP Global Summit.

The company announced its 1.6T ZeroFlap active light cable, an optical interconnect designed for AI scale-out networks. The product uses approximately 30% less power than comparable active electrical cables and works for distances of up to 50 meters. Commercial shipments are not expected until 2027.

Multiple executives sold shares in early October through pre-arranged Rule 10b5-1 plans. The company's CTO, COO, and other executives sold millions of dollars in shares as part of transactions tied to tax obligations on vested equity awards.

Stifel and Mizuho both reduced their price targets for the stock while maintaining bullish ratings on the company.

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