Stock Price & Analysis

Based on the strong price momentum and analyst upgrades, it is a favorable time to buy CRDO stock. The stock has shown significant gains recently, supported by positive analyst sentiment and growing AI portfolio strength.

The price prediction for CRDO stock in 2025 is approximately $57, driven by its strong AI portfolio and recent analyst upgrades. The stock is expected to rise due to improving fundamentals and positive sentiment.

The S1 support level for CRDO Stock is $44.35 ,The R1 resistant level for CRDO Stock is $49.92.

As of the end of day on 2025-03-26, the price of CRDO Stock was $45.11.

The target price for CRDO Stock according to analyst rating is 80.40, with the highest price target at 90.00 and the lowest at 60.00. Analysts have a Strong Buy rating on CRDO Stock overall.

The market cap of CRDO is $8.4B.

Analysis and Insights

Valuation Metrics:

Credo Technology Group Holding Ltd (CRDO) currently trades at $50.58. Key valuation metrics include:

• EV/EBITDA: 36.25x, indicating a premium valuation compared to industry peers.
• PS Ratio: 18.94x, reflecting high market expectations for future growth.
• PB Ratio: 7.67x, suggesting the market values the company's assets and equity highly.

Financial Performance:

• Revenue Growth: Q3 2025 revenue reached $135 million, showing strong growth.
• Net Income: Inconsistent, with Q3 2025 at $29.36 million, improving from previous quarters.
• Gross Margin: 65.75%, stable and healthy.
• Net Margin: 8.89%, improving but volatile.

Recent Analyst Sentiment:

• Susquehanna Upgrade: Upgraded to Positive with a $60 target, citing undervalued AI portfolio and growth potential.
• Market Reaction: Stock rose 9.62% on March 13, driven by AI interest and conference participation.

Technical Analysis:

The stock shows bullish momentum with a recent price surge, but high valuation multiples and customer concentration pose risks.

Conclusion:

CRDO shows growth potential in AI, but high valuation and 86% revenue from Amazon raise concerns. While the stock isn't severely overvalued, investors should monitor these risks.

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.

CRDO stock is predicted to reach $120 by 2030, driven by its strong position in AI connectivity solutions and growing analyst confidence. The company's focus on Active Electrical Cables and Digital Signal Processors positions it well for long-term growth in the expanding AI market. Analysts have set price targets ranging from $60 to $85, with potential for higher valuations as the company diversifies its customer base beyond Amazon.

CRDO has a total of 438 employees.