Should You Buy Credo Technology Group Holding Ltd (CRDO) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
129.470
1 Day change
-0.15%
52 Week Range
213.800
Analysis Updated At
2026/01/28
Buy now for a long-term position. CRDO is trading right on key support (~129.32) after a pullback, while Wall Street’s view remains broadly bullish with high targets ($200–$250) and AI/data-center connectivity demand acting as the core tailwind. Near-term price action can still be choppy, but for a beginner long-term investor who is impatient and doesn’t want to wait for a perfect entry, the current location near support is an attractive spot to start building exposure.
Technical Analysis
Trend/Setup: Near-term trend is bearish-to-neutral (MACD histogram -1.965 below zero), but downside momentum is easing (negatively contracting), which often happens near a potential bottoming area.
Support/Resistance: Price ~129.33 is essentially at S1=129.32 (important support). If this level breaks, next support is S2=120.29. Upside reference levels: Pivot 143.94, then R1 158.56.
RSI: RSI(6) ~28, which is effectively “oversold-ish” and consistent with a selloff that may be nearing exhaustion.
Moving Averages: Converging MAs suggests the prior strong trend has cooled; market is deciding direction.
Pattern-based forward odds (provided): Model implies modest near-term weakness (next day/week slightly negative) but positive bias over the next month (+2.54%).
**Intellectia Proprietary Trading Signals**
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
- [SwingMax](module://swingmax): No signal on given stock recently.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Sentiment from put/call: Both open interest (0.87) and volume (0.65) put/call ratios are below 1, which is generally bullish (more call interest/activity than puts).
Volatility/positioning: IV is extremely elevated (30D IV ~116%, IV percentile ~93), implying the market expects large moves and is pricing in big uncertainty. Today’s option volume is below its recent averages (today vs 30D avg ~51.5%), suggesting no single, dominant “panic” or “chase” day in options right now despite high priced volatility.
Technical Summary
Sell
7
Buy
6
Positive Catalysts
News/Theme tailwinds: Ongoing AI data-center buildout and connectivity upgrades; CRDO highlighted as positioned to capture significant active electrical cable share (projection cited: up to ~75% share with very large revenue potential).
Execution narrative: Multiple firms recently described CRDO as a “beat and raise” story with new customers ramping and product diversification extending growth into FY2027+.
Analyst support: Many Buy/Overweight/Outperform ratings with price targets far above the current price (roughly $200–$250 range among bullish shops), reinforcing long-term upside expectations.
Neutral/Negative Catalysts
Competition risk: Rosenblatt’s Neutral initiation explicitly flags that “additional competition is imminent,” which can compress margins/market share expectations.
Profitability volatility: Latest quarter shows strong revenue growth but sharp YoY declines in net income/EPS (suggesting earnings can swing materially quarter to quarter).
High implied volatility: Options are pricing large moves; that often coincides with sharp drawdowns/rallies and can pressure the stock if expectations reset.
No notable supportive flows: Hedge fund/insider trends are described as neutral (no clear accumulation signal), and no congress trading data is available to confirm influential buying.
Financial Performance
Latest quarter (2026/Q2):
- Revenue: 268.0M, up +272.08% YoY (very strong top-line acceleration).
- Gross Margin: 67.55%, up +6.92% YoY (improving product mix/strength).
- Net Income: 82.64M, down -2055.88% YoY.
- EPS: 0.44, down -1566.67% YoY.
Read-through: The key positive is explosive revenue growth and rising gross margin (strong demand + pricing/mix). The key issue is that bottom-line figures are highly volatile versus last year, so investors are clearly paying for future growth and market positioning more than smooth earnings consistency today.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent rating/target trend: Strongly positive overall. After the strong fiscal Q2 report (2025-12-02 cluster), multiple firms raised targets sharply (e.g., Barclays to $220, TD Cowen to $240, Roth to $250, Mizuho to $225) and at least one upgrade (KGI to Outperform). BofA later trimmed its target (2025-12-16) to $200 from $240 but maintained Buy (more of a sector-wide reset than a CRDO-specific downgrade). Rosenblatt (2026-01-21) initiated at Neutral with a $170 target, acknowledging major growth but highlighting rising competition.
Wall Street pros: Clear leadership/first-mover advantage in 400G/800G connectivity, hyperscaler/customer ramps, and multi-year AI data-center connectivity demand.
Wall Street cons: Competition ramping, and valuation/expectations risk implied by high volatility and the market’s sensitivity to AI spending/ROI scrutiny.
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 USD and a high forecast of 250 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 USD and a high forecast of 250 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
Averages
219.44
High
250
Current: 129.660
Low
165
Averages
219.44
High
250
Rosenblatt
Neutral
initiated
$170
AI Analysis
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.
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