---
title: "Credo's founding trust proposes a $38.7 million sale in launch week"
description: "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."
publisher: "The Inference"
section: "Money"
published: 2026-10-14T13:21:13.433Z
modified: 2026-10-14T13:21:13.433Z
canonical: https://theinference.org/article/credo-s-founding-trust-proposes-a-38-7-million-sale-in-launch-week
language: en
keywords: "Credo, Insider Selling, Optical Networking, Open Compute Project, Semiconductors"
---

# 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.

## The trust sold a block a week, straight through launch week

Chi Fung Cheng, a [Credo](https://theinference.org/markets/companies/credo) director and officer, [signed a Form 144 on October 13, 2026](https://www.stocktitan.net/sec-filings/CRDO/144-credo-technology-group-holding-ltd-sec-filing-d4d87da9fa7f.html), proposing that the Cheng Huang Family Trust sell 192,500 shares for $38,661,700 through [Morgan Stanley](https://theinference.org/markets/companies/morgan-stanley) 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 [2][3]. [His Form 4, the record of a completed insider trade](https://www.sec.gov/Archives/edgar/data/1807794/000162828026065684/0001628280-26-065684-index.htm), shows 492,208 shares kept [2].

*Chart: **The 27,500-share blocks ran unbroken into launch week** Column chart of eleven sales by the Cheng Huang Family Trust from July 14 to October 12, 2026; weekly blocks between $4.5 million and $6.6 million run unbroken through OCP launch week, with two smaller 3,790-share sales including launch day.*

*Gross proceeds, in millions of dollars, of each sale listed on the trust's Form 144 filed October 13, 2026. The two small bars (4 Sep, 12 Oct) were 3,790-share sales that the notice does not mark as 10b5-1 plan sales. [1]*

## 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](https://www.marketscreener.com/news/credo-unveils-1-6t-zeroflap-active-light-cable-industrya-s-first-row-scale-wide-parallel-optical-ce785ddcd08ff221), 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](https://investors.credosemi.com/news-events/news/news-details/2026/Credo-Breaks-the-Memory-Wall-Using-AMD-Programmable-Logic-Based-AI-Accelerators/default.aspx) 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](https://theinference.org/markets/companies/nvidia) and [Cisco](https://theinference.org/markets/companies/cisco) [announced the Ultra-Dense Small Form Factor Pluggable (USFP) module](https://markets.businessinsider.com/news/stocks/nvidia-and-cisco-introduce-new-pluggable-optics-form-factor-to-scale-ai-factories-1036616956), 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](https://www.streetinsider.com/Investing/Credo+Technology+shares+fall+amid+insider+selling+filings/27179200.html), 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](https://theinference.org/article/credo-doubled-sales-now-it-must-earn-the-cash). 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 [1][2]. 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](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001807794), up 115% year on year, with the next quarter guided to $525 million to $535 million [9][5].

*Chart: **Revenue has grown more than sixfold in eight quarters** Line chart of Credo quarterly revenue from the quarter ended November 2024 to the quarter ended August 2026, rising from $72 million to $479 million, with the next quarter guided between $525 million and $535 million.*

*Revenue in millions of dollars by fiscal quarter from Credo's SEC filings; the final point is the company's guidance for the December-quarter, shown as a range. [9]*

## 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.

## Takeaway

The founding trust wants to sell another $38.7 million on a fixed schedule while the launches behind the valuation name no customer and ship no cable before 2027; the trust's next Form 144 and Credo's order book are the tests.

## Sources

1. [StockTitan, Credo Technology trust proposes $38.7M share sale (Form 144), 13 October 2026](https://www.stocktitan.net/sec-filings/CRDO/144-credo-technology-group-holding-ltd-sec-filing-d4d87da9fa7f.html)
2. [SEC EDGAR, Form 4, Credo Technology Group Holding Ltd, Daniel W. Fleming, filed 13 October 2026](https://www.sec.gov/Archives/edgar/data/1807794/000162828026065684/0001628280-26-065684-index.htm)
3. [StockTitan, Credo Technology CFO Fleming sells 7,580 shares (Form 4), 13 October 2026](https://www.stocktitan.net/sec-filings/CRDO/form-4-credo-technology-group-holding-ltd-insider-trading-activity-6db4dade6797.html)
4. [Business Wire via FT Markets, Credo Launches Short-Reach Micro-Emitter Optics (SRMO) Standardization, 12 October 2026](https://markets.ft.com/data/announce/full?dockey=600-202610121820BIZWIRE_USPRX____20261012_BW753816-1)
5. [Business Wire via MarketScreener, Credo Unveils 1.6T ZeroFlap Active Light Cable, 12 October 2026](https://www.marketscreener.com/news/credo-unveils-1-6t-zeroflap-active-light-cable-industrya-s-first-row-scale-wide-parallel-optical-ce785ddcd08ff221)
6. [Credo investor relations, Credo Breaks the Memory Wall Using AMD Programmable Logic-Based AI Accelerators, 13 October 2026](https://investors.credosemi.com/news-events/news/news-details/2026/Credo-Breaks-the-Memory-Wall-Using-AMD-Programmable-Logic-Based-AI-Accelerators/default.aspx)
7. [GlobeNewswire via Markets Insider, NVIDIA and Cisco Introduce New Pluggable Optics Form Factor to Scale AI Factories, 12 October 2026](https://markets.businessinsider.com/news/stocks/nvidia-and-cisco-introduce-new-pluggable-optics-form-factor-to-scale-ai-factories-1036616956)
8. [StreetInsider, Credo Technology shares fall amid insider selling filings, 13 October 2026](https://www.streetinsider.com/Investing/Credo+Technology+shares+fall+amid+insider+selling+filings/27179200.html)
9. [Credo, quarterly figures from its SEC filings, retrieved 14 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001807794)


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Credo's founding trust proposes a $38.7 million sale in launch week — The Inference. Canonical: https://theinference.org/article/credo-s-founding-trust-proposes-a-38-7-million-sale-in-launch-week