Evercore ISI just put a spotlight on one of the lesser-known names in AI infrastructure. The investment firm initiated coverage of Credo Technology Group (NASDAQ: CRDO) with an Outperform rating and a $325 price target, betting that the company’s high-speed connectivity products will be indispensable as AI data centers scale up.

The thesis is straightforward: AI models need faster connections between chips, and Credo makes the cables that handle that traffic. Specifically, the company’s Active Electrical Cables, or AECs, are copper-based connections purpose-built for the kind of high-bandwidth, low-latency data movement that AI workloads demand.

The growth numbers behind the call

Evercore analyst Mark Lipacis is modeling 100% revenue growth for Credo’s AEC solutions in calendar year 2026, then projects 60% growth the following year in 2027.

The earnings projections are equally aggressive. Lipacis estimates Credo could hit earnings per share north of $13 by 2028. That figure would land roughly 40% above where current Wall Street consensus sits.

The broader AI data center revenue picture supports the bull case. Spending in that segment is expected to climb from approximately $1.4 billion in 2025 to over $3 billion in the near term.

Why copper cables matter for AI infrastructure

Copper-based AECs have a specific advantage at shorter distances: they’re cheaper and consume less power than optical alternatives. For the dense, rack-scale connectivity that AI training clusters require, that tradeoff matters enormously when you’re building out thousands of connections per facility.

A central element of the bullish case is Credo’s anticipated strategic pivot from copper to optical solutions. As AI data centers mature and connections need to span longer distances, optical technology becomes essential. Lipacis appears to believe Credo can leverage its existing copper market position as a launching pad into the optical space.

The same day Evercore initiated coverage on Credo, the firm also downgraded TE Connectivity (TEL) from Outperform to In Line, suggesting Evercore sees the AI connectivity opportunity as increasingly favoring specialized, high-growth players like Credo over more diversified industrial connectivity names.

What this means for investors watching AI infrastructure

The risk, naturally, is execution. Modeling 100% revenue growth and a copper-to-optical transition simultaneously is ambitious. The fact that Lipacis’s $13 EPS estimate for 2028 sits 40% above Street consensus means there’s a wide gap between Evercore’s expectations and everyone else’s.