capexScore 100/100Add to thesis
Credo committing $102.4M new capacity reservation deposit post-quarter, on top of $88.4M existing, to lock assembly subcontractor capacity
“Subsequent to August 1, 2026, the Company entered into an additional manufacturing supply capacity reservation agreement with an assembly subcontractor and will pay $102.4 million of refundable deposits within fiscal 2027.”
Why it matters
A more-than-doubling of capacity reservation deposits signals Credo is underwriting a major volume ramp and sees assembly/test capacity as a binding constraint worth prepaying 2-6 years to secure.
Investment implication
Bullish signal on CRDO's forward demand visibility; also positive for OSAT/assembly subcontractors serving AI interconnect, and evidence that advanced packaging/assembly capacity remains scarce industry-wide.