Credo Technology Group (CRDO) to Capture 75% Market Share in Active Electrical Cables by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Benzinga
- Market Leadership: Credo Technology Group is projected to achieve a 75% market share in the active electrical cable sector by 2025, with the market expected to grow from $1.2 billion this year to over $7 billion by 2030, highlighting the company's pivotal role in AI infrastructure.
- Significant Revenue Potential: Credo anticipates generating annual revenues of $4 billion to $5 billion in the long term, with Bank of America estimating earnings power exceeding $10 per share, indicating strong profitability in a rapidly expanding market.
- Stock Price Upside: Credo's shares surged 114% last year and are expected to rise by 245% in 2024, reflecting robust market confidence in its growth prospects, with Bank of America raising its price target to $200, suggesting a 44% upside.
- Strong Industry Demand: With the rebound in AI-driven data center and semiconductor equipment spending, Credo's market outlook is widely regarded as favorable, likely driving sustained growth in the coming years, particularly in complex semiconductor testing and advanced packaging sectors.
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Analyst Views on CRDO
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
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
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.
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