Goldman Sachs has just covered Credo Technology Group Holding Ltd for the first time, giving a "buy" rating and a target price of $165. Against the backdrop of the narrative of light entering and copper retreating, Goldman Sachs' move is clearly a judgment that copper based active cables still have significant cost and reliability advantages in short distance scenarios, especially in the environment of high-density deployment of AI servers, where cost-effectiveness is more prominent. AI data centers are not a single-layer structure. It is divided into chip level, board level, cabinet level, rack level, and even the interconnection level of the entire data center. Light and copper are not simply substitutes, but coexist in layers and are optimally configured based on distance and cost. Copper still occupies an important position in short distance high bandwidth connections. With the rapid increase in the number of GPUs, the increase in power density of single cabinets, and the exponential expansion of bandwidth demand, server internal connections have become a new bottleneck. Each generation of GPU upgrade will synchronously drive the increase in internal interconnect requirements, which is the underlying logic that Credo is favored for. Compared with companies such as Broadcom Inc. and Marvel Technology Inc., Credo's positioning is more focused on short-range copper connections, while the former two are more focused on areas such as optical DSP, platform based solutions, and customized ASICs. If the competition for optical modules intensifies and prices are under pressure in the future, copper based solutions may become more attractive alternatives in some scenarios. Li Shen: I hold biased views on assets mentioned in my tweet, which is not investment advice