On September 1, Credo Technology Group Holding Ltd declined 5.69% in regular trading, trading at $214.61/share, with turnover of $162 million. The stock is scheduled to report its Q1 fiscal year earnings after the close on the same day.

On the news front, the optical communications sector came under broad selling pressure after industry peer Coherent saw its stock plunge over 8% following its own earnings release, despite reporting results and guidance that exceeded expectations. The negative sentiment rippled across the interconnect and optical communications space, weighing heavily on Credo ahead of its own results. Market consensus expects Credo to report quarterly revenue of approximately $470 million, representing year-over-year growth of around 111%, with adjusted earnings per share of $1.16. The company had previously guided Q1 revenue in the range of $465 million to $475 million. Last quarter, Credo posted revenue of $437 million with a net profit margin of 38.70%.

Separately, AI chip maker Cerebras reported a revenue miss and a net loss of $450.5 million after the bell, further dampening sentiment across the broader semiconductor complex. Within the Semiconductors sector, Marvell Technology fell 4.78%, Intel fell 3.29%, and AMD fell 3.03%.

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