Credo's founding trust proposes a $38.7 million sale in launch week
A Form 144, the SEC notice of a proposed insider sale, filed October 13 proposes selling 192,500 Credo founders' shares held since 2008, on top of the $51.3 million the same trust has banked since July. None of Credo's three announcements around the Open Compute Project summit names a customer or a price, and the new cable ships no earlier than 2027.
Vincent Jiang · 3 min read
The trust sold a block a week, straight through launch week
Chi Fung Cheng, a Credo−3.52% — Credo, down 3.52 percent today director and officer, signed a Form 144 on October 13, 2026, proposing that the Cheng Huang Family Trust sell 192,500 shares for $38,661,700 through Morgan Stanley−2.70% — Morgan Stanley, down 2.70 percent today Smith Barney 1. The stock is founders' paper issued to the trust on August 30, 2008 1. The same notice lists eleven trust sales between July 14 and October 12, together worth $51.3 million 1.
Nine of the eleven were weekly blocks of 27,500 shares under a Rule 10b5-1 plan, a pre-set schedule adopted on September 5, 2025, that keeps trading even after the seller learns confidential news 1. Two disposals of 3,790 shares, on September 4 and on October 12, launch day, carry no plan marking in the notice 1. The proposed block equals seven of those weekly blocks at once.
Chief financial officer Daniel Fleming sold 7,580 shares for $1.61 million on October 8 under a plan adopted on January 12, 2026 23. His Form 4, the record of a completed insider trade, shows 492,208 shares kept 2.
The 27,500-share blocks ran unbroken into launch week
Data
| Gross proceeds | |
|---|---|
| 14 Jul | $6.61M |
| 21 Jul | $6.11M |
| 27 Jul | $5.65M |
| 31 Jul | $5.76M |
| 4 Sep | $0.64M |
| 11 Sep | $4.48M |
| 17 Sep | $4.58M |
| 23 Sep | $5.31M |
| 29 Sep | $5.33M |
| 6 Oct | $6.09M |
| 12 Oct | $0.76M |
The launches name no customer and no price
On October 12 Credo opened a Short-Reach Micro-Emitter Optics (SRMO) workstream inside the Open Compute Project, the shared-specification body for hyperscaler hardware, joined by an unnamed hyperscaler and the optics and component makers AFL, ams OSRAM, BizLink, Foxlink, Heraeus Covantics, SENKO and YOFC 4. The specification targets OCP approval in 2027 4. The same day Credo detailed the 1.6T ZeroFlap active light cable, which draws 12 watts per cable end and ships in 2027 5, and on October 13 it demonstrated its OmniConnect Weaver memory gearbox on an AMD Versal adaptive-silicon board at the OCP summit in San Jose 6.
None of the three names a customer or a price. The rival camp moved the same Monday: Nvidia−2.02% — Nvidia, down 2.02 percent today and Cisco+0.73% — Cisco, up 0.73 percent today announced the Ultra-Dense Small Form Factor Pluggable (USFP) module, 400 gigabits per second per lane, with TE Connectivity and Amphenol building the cages, connectors and modules 7.
The plans are old; the orders are not here yet
StreetInsider reported Credo shares closed at $189.44 on October 13, down 5.7%, a second straight losing session since the product announcements 8; The Inference reported the 7.2% fall that met Monday's launch. The same morning brought a Form 4 and a Form 144 from director and chief operating officer Yat Tung Lam, and Stifel and Mizuho cut their price targets while keeping bullish ratings 8.
The filings carry their own defense: the plans predate launch week by months, and Cheng certified he knew of no undisclosed adverse information about Credo's operations 12. The launch-day disposal sits outside that defense, a 3,790-share sale the notice does not mark as planned 1. The business is compounding regardless: revenue reached $479 million in the quarter ended August 1, 2026, up 115% year on year, with the next quarter guided to $525 million to $535 million 95.
Revenue has grown more than sixfold in eight quarters
- Revenue
- Estimate
Data
| Revenue | |
|---|---|
| Q3 '24 | $72M |
| Q4 '24 | $135M |
| Q1 '25 | $170M |
| Q2 '25 | $223M |
| Q3 '25 | $268M |
| Q4 '25 | $407M |
| Q1 '26 | $437M |
| Q2 '26 | $479M |
| Q3 '26 (estimate) | $530M ($525–535M) |
What to watch
The next readings are the trust's next Form 144 and Credo's order book. The trust is selling on a fixed weekly schedule while the cable meant to justify the valuation has no ship date before 2027; whether any of the three announcements becomes a named order before then is the test.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
