Credo Technology stock tumbles despite Nvidia message on copper

Investing.com -- Credo Technology Group (NASDAQ: CRDO) shares fell 11% Tuesday despite Nvidia (NASDAQ: NVDA) CEO Jensen Huang's comments Monday at the company's GTC conference, highlighting the need for increased capacity in both copper and optical interconnect solutions.

Huang stated that Nvidia would scale up with both copper and co-packaged optics, emphasizing the need for significantly more capacity in both areas. Credo provides high-speed copper and optical interconnect products used in AI infrastructure buildout.

The remarks echoed similar comments from Broadcom CEO Hock Tan earlier this month during his company's earnings report.

Other copper-focused stocks showed more resilience to the market session. Astera Labs (NASDAQ: ALAB) and Amphenol (NYSE: APH) each declined approximately 1%.

Optical interconnect stocks displayed mixed performance. Lumentum Holdings (NASDAQ: LITE) rose 3%, Coherent (NASDAQ: COHR) fell 1%, and Corning (NYSE: GLW) declined 2%.

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