Credo Technology Group shares fell 6.08% as it crossed below the 5-day SMA, reflecting broader market weakness with the Nasdaq-100 down 1.60% and S&P 500 down 0.97%.
Despite the stock's decline, Credo reported a remarkable revenue of $268 million in its fiscal Q2 2023, representing a 272% year-over-year increase, driven by strong demand for its AI infrastructure solutions. The company also achieved a net income of $82.6 million, a significant turnaround from a net loss of $4.2 million in the prior year, indicating enhanced profitability in its offerings. Furthermore, Credo's optimistic outlook for Q3 revenue, projected between $335 million and $345 million, underscores its potential for continued growth in the rapidly expanding AI market.
The strong financial results and positive market outlook suggest that while the stock is currently experiencing downward pressure, the fundamentals remain solid, positioning Credo well for future expansion in the AI infrastructure sector.
Wall Street analysts forecast CRDO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRDO is 219.44 USD with a low forecast of 165.00 USD and a high forecast of 250.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast CRDO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRDO is 219.44 USD with a low forecast of 165.00 USD and a high forecast of 250.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 129.660
Low
165.00
Averages
219.44
High
250.00
Current: 129.660
Low
165.00
Averages
219.44
High
250.00
Rosenblatt
Neutral
initiated
$170
2026-01-21
Reason
Rosenblatt
Price Target
$170
AI Analysis
2026-01-21
initiated
Neutral
Reason
Rosenblatt initiated coverage of Credo Technology with a Neutral rating and $170 price target. The firm sees the company's revenue nearly tripling and earnings to more than quadrupling in fiscal 2026. The near-term strength is driven by Credo's technology stack, first-mover advantage in 400G and 800G, and success in the up to 7-meter AI data center scale-out and scale-up connectivity markets, the analyst tells investors in a research note. However, Rosenblatt says "additional competition is imminent."
BofA
Vivek Arya
Buy
downgrade
$240 -> $200
2025-12-16
Reason
BofA
Vivek Arya
Price Target
$240 -> $200
2025-12-16
downgrade
Buy
Reason
BofA analyst Vivek Arya lowered the firm's price target on Credo Technology to $200 from $240 and keeps a Buy rating on the shares. The firm is updating its price targets for U.S. Semiconductor stocks under its coverage, the analyst tells investors. BofA views 2026 as a midpoint for an 8 to 10 year journey upgrading traditional IT infrastructure for faster, AI workloads. While stocks may remain choppy amid greater scrutiny of AI returns and hyperscaler cash flows, this should be offset by faster large language model builders and AI factories, the firm adds.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for CRDO
Unlock Now
Mizuho
Vijay Rakesh
Outperform
upgrade
$165 -> $225
2025-12-02
Reason
Mizuho
Vijay Rakesh
Price Target
$165 -> $225
2025-12-02
upgrade
Outperform
Reason
Mizuho analyst Vijay Rakesh raised the firm's price target on Credo Technology to $225 from $165 and keeps an Outperform rating on the shares. The firm upped estimates well above consensus following the better than expected earnings report.
TD Cowen
Sean O'Loughlin
Buy
upgrade
$190 -> $240
2025-12-02
Reason
TD Cowen
Sean O'Loughlin
Price Target
$190 -> $240
2025-12-02
upgrade
Buy
Reason
TD Cowen analyst Sean O'Loughlin raised the firm's price target on Credo Technology to $240 from $190 and keeps a Buy rating on the shares. The firm said the company posted strong results and stronger guide and likely cleared even the highest of buyside bars coming into the print. The massive January quarter guidance has rest expectations even higher while noting the next leg of growth to come will be from delivering in new Connectivity markets.
About CRDO
Credo Technology Group Holding Ltd is a Cayman Islands-based holding company. The Company delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides high-speed connectivity solutions that deliver improved power efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. Its connectivity solutions are optimized for optical and electrical Ethernet applications, including the emerging 100 gigabits per second (G), 200G, 400G, 800G and the emerging 1.6 terabits per second (T) port markets. Its products are based on its Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies. Its product families include integrated circuits (ICs) for the optical and line card markets, active electrical cables (AECs) and SerDes Chiplets. The Company’s intellectual property (IP) solutions consist primarily of SerDes IP licensing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
