Credo Technology ve fiskálním roce 2026 více než ztrojnásobila tržby na 1,335 miliardy USD a čistý zisk podle non-GAAP vzrostl více než pětkrát na 662 milionů USD. Firma navíc čeká v 1. čtvrtletí fiskálního roku 2027 tržby 465 až 475 milionů USD.
I keep hitting the “Buy” button on Credo Technology Group (NASDAQ:CRDO | CRDO Price Prediction) because I have not found another pure-play way to own the wiring of the AI data center at this scale. Every rack of GPUs a hyperscaler stands up needs high-speed connectivity that does not drop links, does not burn extra watts, and does not require the whole cluster to be babysat. Credo sells exactly that, and the fiscal 2026 numbers tell me the buyers are ordering with both hands.
The Thesis in Plain English Credo makes Active Electrical Cables, retimers, optical DSPs, SerDes chiplets and memory connectivity for AI clusters, supporting port speeds up to 1.6 terabits per second. Fabless, vertically integrated and now printing hyperscaler-grade margins.
CEO Bill Brennan put it cleanly on the Q4 call: “Fiscal 2026 marked another defining year for Credo. For the year, revenue more than tripled to $1.3 billion, and non-GAAP net income increased more than five times to $662 million.” That is the catalyst itself, already in motion.
Three Reasons the Conviction Holds First, the growth is real and compounding. Q4 FY2026 revenue landed at $437.00M, up 157.0% YoY, and full-year revenue came in at $1.335 billion, up 205.7% YoY. Credo has beaten EPS estimates in four consecutive quarters, with the most recent beat at 12.17%.
Second, the margin profile. Non-GAAP gross margin in Q4 was 68.3%, non-GAAP operating margin hit 49.6%, and net income margin reached 51.9%. Operating income grew 361.2% YoY on 157% revenue growth. That is operating leverage most semiconductor investors dream about.
Third, the balance sheet. Cash sits at $1.165 billion against total liabilities of $232.01M and equity of $2.064 billion. No debt overhang forcing a bad decision at a bad time.
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Why Not the Obvious Names The instinct is to reach for Broadcom (NASDAQ:AVGO), Marvell Technology (NASDAQ:MRVL) or Astera Labs (NASDAQ:ALAB). I own AI silicon through other slots, and none deliver Credo’s specific mix: Quarterly revenue growth of 157% year over year while operating margin ran 35.7% trailing 12 months on a share count barely over 186 million.
Broadcom is fine, but AI networking is one slice of a giant conglomerate. Marvell’s growth rate does not sit in the same neighborhood. Astera plays an adjacent lane, but Credo’s AEC franchise, where Brennan says “AECs are up to 1,000 times more reliable and consume half the power” versus optical, gives it a moat I can point to.
The Risk I Actually Watch Insider selling has been heavy. The CTO disposed of roughly 300,000+ shares across the April to July window, and executives were selling into the recovery, not just at the highs. Customer concentration is real: the top three customers were 35%, 33% and 20% of revenue in Q1. RSU-driven selling against $662 million in annual non-GAAP net income reads as routine diversification at a rapidly compounding company, and a fourth hyperscaler is already ramping toward material contribution.
What Keeps the Buy Button Active Q1 FY2027 guidance calls for revenue of $465 million to $475 million, sequentially higher again. Analysts are bullish with 17 Buy ratings versus one hold rating and a target of $269.81. Forward P/E of 41 is not cheap, but on this growth curve I will pay it.
As long as hyperscalers keep building clusters and Credo keeps beating its own guide, my order tickets stay open.
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Credo ve 4. fiskálním čtvrtletí vykázala volný peněžní tok 177,5 milionu USD při provozním cash flow 182,2 milionu USD. Na konci čtvrtletí měla 1,4 miliardy USD v hotovosti.
Key Takeaways Credo's fiscal fourth-quarter free cash flow rose to $177.5 million on $182.2 million in operating cash flow.CRDO ended the quarter with $1.4 billion in cash, supporting product innovation and accretive acquisitions.Credo is investing in AECs, ZeroFlap Optics, ALCs and OmniConnect to capture AI connectivity demand. Credo Technology Group Holding Ltd (CRDO - Free Report) posted a strong finish to fiscal 2026, delivering solid free cash flow in the fiscal fourth quarter, underscoring strengthening profitability amid explosive demand for AI infrastructure.
In the fiscal fourth quarter, cash flow from operations reached $182.2 million, increasing $16 million sequentially. With capital expenditures of just $4.8 million, free cash flow climbed to $177.5 million. The company ended the quarter with $1.4 billion in cash and equivalents, driven primarily by robust free cash flow generation.
This strong cash position provides Credo with ample financial flexibility to invest in product innovation and pursue accretive M&A. In the recent earnings call, the company noted that it remains “well capitalized” to fuel the next leg of growth, while maintaining a considerable cash buffer.
Credo is deploying its capital strategically. Management noted that the Dust Photonics acquisition, which closed in the first quarter of fiscal 2027, utilized approximately $750 million. Despite this sizable outflow, the company expects to remain in a comfortable liquidity position, supported by operating cash flow approaching $200 million per quarter.
Further, Credo added that it may pursue opportunistic acquisitions, but has no such immediate plans. The company also has no plans to raise additional capital or authorize a share repurchase program currently.
As AI reshapes the data center architectures, it is accelerating demand for high-speed connectivity solutions. Credo lies at the intersection of AI and data center build-outs with its active electrical cables (AECs), optical Digital Signal Processors and PCIe retimers solutions that address the growing need for high-speed, low-power connectivity in the data center space.
Given this, the cash strength is strategically valuable as Credo deepens its role in the hyperscale ecosystem. The company continues to scale its AEC business while accelerating investments in newer growth areas such as ZeroFlap Optics, Active LED Cables (ALCs) and OmniConnect solutions.
How Are Competitors Faring?Although Credo has tremendous opportunities, these are unfolding in a fiercely competitive landscape. Bigger rivals like Broadcom (AVGO - Free Report) and Marvell Technology (MRVL - Free Report) , with their relatively stronger financial positions, offer some serious competition to Credo.
Broadcom is one of the giants in the semiconductor space. In the last reported quarter, free cash flow was a massive $10.3 billion (about 46% of revenues) while capex came in at $231 million. As a result, the company had about $19.6 billion of cash and cash equivalents on its balance sheet at the quarter-end.
The company sees massive opportunities in the AI space, as its hyperscaler customers have begun developing their own custom accelerators or XPUs. Broadcom is building custom silicon platforms and enabling massive compute deployments for leading hyperscalers such as Meta, as well as AI companies like Anthropic and OpenAI. AI semiconductor revenues are expected to reach $16 billion in the third quarter of fiscal 2026, up more than 200% year over year.
Strong cash position provides ample flexibility to pursue these opportunities. However, Broadcom’s acquisition-driven growth strategy (mainly the VMware acquisition) had led to a hefty debt on its balance sheet. Long-term debt was nearly $62.7 billion at the end of the last reported quarter.
Marvell Technology has been in the spotlight for some time now, especially after NVIDIA's chief publicly called it the next trillion-dollar company earlier this year. The company is now a component of the S&P 500 index. Marvell Technology’s strategic pivot to prioritize the data center market is proving to be a successful catalyst amid surging AI infrastructure spending.
The company is using its cash pile to capture AI-driven opportunities in cloud and data center infrastructure through R&D investment as well as strategic acquisitions like XConn Technologies and Celestial AI. It had $3.84 billion in cash and cash equivalents at the end of the last reported quarter. Cash flow from operations for the first quarter of fiscal 2027 was $638.8 million.
Like AVGO, Marvell Technology also has a highly leveraged balance sheet with a long-term debt of $4.96 billion as of May 2, 2026.
CRDO’s Price Performance, Valuation and EstimatesShares of CRDO have lost 23.5% compared with the Electronics-Semiconductors industry’s decline of 17.2% in the past month.
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In terms of the forward 12-month price/sales ratio, CRDO is trading at 15.01, higher than the Electronic-Semiconductors industry’s multiple of 8.39.
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The Zacks Consensus Estimate for CRDO’s earnings for fiscal 2027 has been revised upward over the past 60 days.
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CRDO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CTO Credo Technology Group Holding Ltd Chi Fung Cheng prodal přes rodinný trust Cheng Huang Family Trust 27 500 akcií za 6,6 milionu USD v rámci plánu 10b5-1. Po prodeji stále drží zhruba 3% podíl a akcie jsou za rok výše o 139%.
Chi Fung Cheng, the chief technology officer at Credo Technology Group Holding Ltd (CRDO 8.63%), sold 27,500 shares on July 14, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$6.6 millionShares sold (indirectly held)27,500Post-transaction shares (directly held)140,358Post-transaction shares (indirectly held)5,854,870Post-transaction value$1.4 billionTransaction value based on SEC Form 4 weighted average sale price ($240.21); post-transaction value based on July 14, 2026 market close ($236.18).
Key questionsWhat were the specific parameters of this disposition?
The transaction was executed by the Cheng Huang Family Trust under a Rule 10b5-1 trading plan adopted on September 5, 2025. The trust is managed by Cheng Chi Fung and his spouse as trustees for the benefit of their family, and the sale was conducted in multiple trades at prices ranging from $235.79 to $250.49.How does this transaction relate to the insider's total equity exposure?
The sale of 27,500 shares represented a 0.46% reduction in the insider's total direct and indirect equity holdings. Following the trade, the insider continues to hold roughly 140,000 shares directly and 5.9 million shares indirectly, maintaining a 3% ownership stake in the company.What is the current market context for the company?
As of the July 15, 2026 market close, shares were priced at $226.74. At the time of the transaction on July 14, 2026, the stock had delivered a one-year total return of 139%, reflecting a period of significant appreciation for the semiconductor firm.Company OverviewMetricValueShare Price (as of market close 2026-07-15)$226.74Market Capitalization$42.3 billionRevenue (TTM)$1.3 billionNet Income (TTM)$472.3 millionCompany SnapshotCredo Technology Group designs and delivers advanced high-speed connectivity solutions, including integrated circuits, active electrical cables, and SerDes chiplets for optical and electrical Ethernet applications across global markets.The company generates revenue through the development and sale of proprietary semiconductor products and connectivity solutions that enable high-speed data transmission for enterprise and infrastructure customers.Credo's primary customer base includes leading technology and telecommunications companies requiring advanced connectivity infrastructure, with geographic presence spanning the United States, Mexico, China, Hong Kong, and other international markets.Credo Technology Group is a semiconductor specialist with a $42.3 billion market capitalization, generating $1.3 billion in TTM revenue with a net profit margin of approximately 36.3%. The company has established a competitive position through proprietary SerDes chiplet technology and integrated circuit solutions that address the growing demand for high-speed Ethernet connectivity in data center and telecommunications infrastructure applications.
What this transaction means for investorsThis filing effectively details a billionaire co-founder skimming a sliver off an enormous position, and it’s not a signal to chase. Cheng sold through his family trust under a plan set last September, and 27,500 shares clears less than half a percent of his roughly 6 million shares. Those holdings are worth well over $1.3 billion, so a founder who built the company's core SerDes technology parting with this little, on a preset schedule, after a 139% run, is basically diversifying.
He's also not the only insider selling on plan lately, which can look jumpy but reflects an inner circle taking profits after a historic stretch. Credo tripled fiscal 2026 revenue past $1.3 billion and grew non-GAAP net income more than fivefold to $662 million. Of course, the stock remains prone to volatility, having fallen over 30% from an all-time just a few weeks ago, but that seems more largely tied to broader sentiment in semiconductor names, as opposed to execution, which should matter more in the long run.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Credo ve fiskálním roce 2026 více než ztrojnásobila tržby na přes 1,3 miliardy USD v důsledku poptávky po AI. Pro fiskální rok 2027 očekává růst tržeb o více než 80 %.
Key Takeaways Credo's fiscal 2026 revenue more than tripled to over $1.3 billion on AI demand.CRDO expects fiscal 2027 revenue growth above 80%, supported by its expanding optical portfolio ramp.Credo cited customer concentration and supply chain constraints as key risks. Credo Technology Group Holding Ltd’s (CRDO - Free Report) shares have appreciated 165.1% over the past year, outperforming the Zacks Electronics – Semiconductors industry’s growth of 76.2%. The Zacks Computer and Technology sector and the S&P 500 composite have registered growth of 35.2% and 24.7%, respectively, over the same time frame.
The stock has outperformed Broadcom (AVGO - Free Report) , which gained 42.1% during the same period. However, Marvell Technology (MRVL - Free Report) and Astera Labs (ALAB - Free Report) have outperformed CRDO, with their shares appreciating 216.7% and 305.3%, respectively, over the past year.
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Let us take a closer look at CRDO’s fundamentals, key growth drivers, competitive strengths and potential risks to determine whether the stock remains an attractive investment.
Factors to ConsiderCredo is benefiting from the rapid expansion of AI infrastructure, which continues to drive strong demand for its high-speed connectivity solutions. Fiscal 2026 was another transformative year for the company, with revenue surpassing $1.3 billion, more than tripling year over year. Non-GAAP net income increased more than fivefold to $662 million, reflecting strong execution, product leadership and healthy margins. In the fiscal fourth quarter, revenue reached a record $437 million, exceeding the company's entire fiscal 2025 revenue, while non-GAAP gross margin remained strong at 68.3%. Management attributed this performance to Credo's ability to capitalize on the increasing importance of reliable, power-efficient connectivity as AI clusters continue to expand.
The company continues to strengthen its competitive position through a comprehensive connectivity portfolio designed for AI infrastructure. Its strategy spans die-to-die, chip-to-chip, multi-rack copper and facility-wide optical interconnect solutions, enabling it to address connectivity needs across the entire AI data center. Management stated that hyperscalers and Neo cloud providers increasingly seek partners capable of delivering multiple generations of connectivity products with deep system-level integration. Credo believes its vertically integrated approach, covering SerDes technology, silicon, firmware, telemetry software and system-level solutions, differentiates it from competitors and positions it as a long-term network architecture partner.
Credo's Active Electrical Cable (AEC) business remains a major growth driver. As AI clusters become larger and more complex, customers are increasingly prioritizing network reliability and power efficiency. Management noted that its ZeroFlap AECs provide significantly higher reliability than conventional laser-based optical modules while consuming less power, making them well-suited for in-rack and multi-rack deployments. The company continues to experience strong adoption among hyperscale and Neo cloud customers for both 100-gig and emerging 200-gig-per-lane deployments. It also remains on track with its PCIe Gen 6 AEC family, where customer engagement and design activity continue to expand.
The optical business is expected to become another significant growth engine. Management believes fiscal 2027 will represent an inflection point as demand increases for optical DSPs, silicon photonics and ZeroFlap optics. The recently completed acquisition of Dust Photonics expands Credo's capabilities with silicon photonics technology, strengthening its portfolio across 800G and 1.6T solutions while providing a roadmap to higher-speed products. The company expects its optical DSPs, silicon photonics PICs and ZeroFlap optics to each generate more than $100 million in fiscal 2027 revenue, with the combined optical portfolio expected to contribute more than $600 million. Management believes this portfolio will support sustained long-term growth.
Beyond its core businesses, Credo continues to advance several emerging growth opportunities. The company is developing Active Light Cable (ALC) solutions that extend the reliability and power advantages of AECs into longer-distance optical connectivity using MicroLED technology. It is also expanding its OmniConnect portfolio, including its Weaver gearbox solution, to address increasing memory bandwidth and density requirements for next-generation AI inference architectures. Customer engagement remains strong, and management expects production ramps for both ALC and OmniConnect solutions to begin in fiscal 2028, adding new long-term growth drivers.
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The company's financial outlook remains bright, supported by continued AI-driven demand. For fiscal 2027, Credo expects revenue growth of more than 80% year over year, with the second half benefiting from the ramp of its optical portfolio. Management anticipates non-GAAP gross margin to remain broadly consistent with fiscal 2026 levels while maintaining a non-GAAP net margin near 50%. The company also generated record operating cash flow and free cash flow during the fiscal fourth quarter, ending the year with approximately $1.4 billion in cash and cash equivalents, providing ample financial flexibility to invest in future growth opportunities.
However, Credo continues to face customer concentration and supply chain-related risks. During the fourth quarter of 2026, four customers each accounted for more than 10% of revenue, with the largest customer contributing 34%, highlighting continued dependence on a limited number of large customers despite ongoing diversification efforts. Management also acknowledged that the supply chain remains tight across the industry and noted that current fiscal 2027 guidance is based on the existing tariff environment, which remains subject to change.
A Look at CRDO’s ValuationThe stock trades at a forward 12-month price-to-sales (P/S) ratio of 18.84, above the industry’s average of 9.04. AVGO, MRVL and ALAB trade at a forward 12-month P/S of 12.25X, 14.73X and 36.42X, respectively.
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CRDO’s Upward EstimatesThe Zacks Consensus Estimate for CRDO’s earnings for fiscal 2026 has been significantly revised upward over the past 60 days.
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What Should You Do With CRDO Stock Now?Sporting a Zacks Rank #1 (Strong Buy), Credo appears to be a compelling investment opportunity at the moment.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Credo Technology Group hlásí zrychlení retimer obchodu díky rostoucí poptávce po řešeních 100 Gbps a 200 Gbps na lince. Blue Heron 200 Gbps retimer získává zájem zákazníků pro AI infrastrukturu s podporou Ethernetu i UALink.
Key Takeaways Credo's retimer business is gaining momentum with rising demand for 100G and 200G per lane solutions.CRDO's Blue Heron retimer supports Ethernet and UALink protocols for flexible AI infrastructure deployments.Credo is securing design wins with hyperscalers, OEMs and optical module makers for recurring revenues. As computing systems become more powerful and data transfer speeds continue to increase, maintaining signal integrity across complex interconnects has become a key challenge for the semiconductor industry. This is where retimers have emerged as a critical enabling technology. Among the companies capitalizing on this trend, Credo Technology Group Holding Ltd. (CRDO - Free Report) has steadily strengthened its foothold in the high-speed connectivity market. Its retimer business has reached a crucial inflection point, driven by increasing demand for solutions supporting both 100 Gbps and 200 Gbps per lane.
At the same time, the company is gaining steady traction with its PCIe Gen 6 retimers, reflecting the industry's shift toward next-generation, high-bandwidth computing platforms. A key factor driving this momentum is CRDO's Blue Heron 200 Gbps-per-lane retimer, designed specifically to meet the needs of both scale-out and emerging scale-up AI networks. The device is attracting increasing customer interest because it supports a wide range of 200 Gbps-per-lane protocols, including Ethernet, UALink and Ultra Accelerator Link (UALink)-based ecosystems, allowing customers to deploy flexible, future-proof AI infrastructure.
As AI clusters grow larger and more complex, protocol diversity is rising, making interoperability and signal integrity more important than ever. CRDO believes its deep system-level expertise, paired with its strong software integration capabilities, offers a significant competitive edge. These strengths not only simplify customer deployments but also position CRDO to continue expanding its market share as next-generation AI networking infrastructure develops. Securing design wins with major hyperscalers, networking OEMs and optical module manufacturers position the company for long product lifecycles and recurring revenues as customer deployments scale.
Competition Heating Up in the PCIe Retimer Market for CRDOAstera Labs (ALAB - Free Report) is benefiting from rising demand for PCIe 6 signal conditioning and AI fabric switching as hyperscalers expand rack-scale AI deployments. PCIe Gen 6 business, spanning AI fabric and signal conditioning, remained strong in the first quarter, contributing more than one-third of total revenues. It has now shipped millions of PCIe Gen 6 ports, underscoring the maturity and reliability of its portfolio. The combination of higher-speed interconnect needs and increasing platform diversity supports ongoing content expansion per accelerator. Management expects continued strength in Aries and Taurus and an early-stage ramp in Scorpio X-Series, guiding second-quarter revenues to $355-$365 million.
Broadcom Inc. (AVGO - Free Report) is benefiting from rising demand for AI semiconductors, driven by custom XePUs and AI networking, while VMware continues to support growth in infrastructure software. In networking, AVGO maintains at least a one-generation technology lead. Its 200G and 400G SerDes power direct-attached copper for scale-up networks, while its 100 Tbps Tomahawk 6—the industry's first Ethernet switch at that speed—has been shipping for more than a year, strengthening its leadership in scale-out networking. Broadcom expects to tape out its next-generation 200-terabit switch in fiscal 2026. For fiscal 2026, management expects AI semiconductor revenues of $56 billion, up approximately 180%.
CRDO Price Performance, Valuation and EstimatesShares of CRDO have surged 160.9% in the past year compared with the Electronics-Semiconductors industry’s growth of 74.9%.
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In terms of the forward 12-month price/sales ratio, CRDO is trading at 17.68, higher than the Electronic-Semiconductors industry’s multiple of 8.93.
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The Zacks Consensus Estimate for CRDO’s earnings for fiscal 2027 has seen a significant uptick over the past 60 days.
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CRDO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Credo Technology Group Holding Ltd říká, že Active Electrical Cables zůstávají klíčovým růstovým motorem díky poptávce po spolehlivém a úsporném propojení pro AI infrastrukturu. Ve fiskálním roce 2027 čeká růst tržeb o více než 80 %.
Key Takeaways Credo expects AECs to remain a key growth driver as AI clusters demand reliable, power-efficient connectivity.CRDO says ZeroFlap AECs offer up to 1,000x greater reliability while using significantly less power.Credo expects over 80% fiscal 2027 revenue growth, with AECs supporting its copper portfolio expansion. Credo Technology Group Holding Ltd (CRDO - Free Report) continues to see Active Electrical Cables (AECs) as one of its primary growth drivers, supported by increasing demand for reliable and power-efficient connectivity in AI infrastructure. The company highlighted that as AI clusters expand, reliability and power efficiency have become major design considerations. As a result, AECs have become the preferred choice for in-rack connectivity and many multi-rack deployments extending up to seven meters.
Credo also stated that its ZeroFlap AECs deliver up to 1,000 times greater reliability than conventional laser-based optical modules while consuming significantly less power. In environments where network downtime can delay AI deployments and increase costs, the company believes network reliability has become increasingly important.
Credo reported continued customer adoption of its AEC portfolio across hyperscale and Neo cloud operators for both 100-gigabit-per-lane deployments and emerging 200-gigabit-per-lane applications. The company’s vertically integrated approach, spanning core SerDes technology, silicon, system-level solutions, firmware and telemetry software, supports its position as connectivity speeds and AI cluster complexity continue to increase. It also remains on track with its PCIe Gen 6 AEC family, where customer engagement and design activity continue to strengthen.
On the last earnings call, management highlighted that growth in its existing copper portfolio, led primarily by AECs along with retimers, is expected to support first-half fiscal 2027 performance. The company also stated that approximately half of its projected fiscal 2027 revenue growth is expected to come from its optical portfolio, while the remaining half is anticipated to be driven by its existing copper portfolio, predominantly AECs. Management further stated that AEC adoption is expanding across both hyperscalers and Neo cloud customers, with additional opportunities to deepen deployments across customer networks. Credo expects AECs to remain an important long-term contributor to the company's growth.
For fiscal 2027, management expects more than 80% year-over-year revenue growth. Management anticipates more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million.
Taking a Look at CRDO’s CompetitorsBroadcom Corporation (AVGO - Free Report) is benefiting from rising AI semiconductor demand, led by custom XPUs and AI networking, while VMware continues to support infrastructure software growth. AI semiconductor revenues reached a record level in the fiscal second quarter, and management expects further growth in the fiscal third quarter, supported by multi-year commitments with core customers. Broadcom’s networking leadership, expanded XPU relationships and healthy free cash flow provide long-term growth support. Non-AI semiconductors are also showing signs of cyclical recovery. For the third quarter of fiscal 2026, Broadcom expects revenues of approximately $29.4 billion, indicating 84% year-over-year growth.
Marvell Technology (MRVL - Free Report) is benefiting from AI-led demand across the data center end market, with custom silicon, interconnect, switching and optics driving record revenues and a higher multi-year outlook. Management now expects about 40% revenue growth for fiscal 2027. The expanded NVIDIA partnership, including NVLink Fusion and optics collaboration, embeds Marvell deeper in hyperscaler roadmaps and supports program ramp. Recent acquisitions broaden scale-up capabilities. Communications and other areas are recovering as inventories normalize. Marvell expects fiscal 2027 revenues to grow about 40% year over year to nearly $11.5 billion and sees fiscal 2028 revenues rising about 45% to roughly $16.5 billion.
CRDO Price Performance, Valuation and EstimatesShares of CRDO are up 136.1% in the past three months compared with the Electronics-Semiconductors industry’s growth of 40.5%.
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Regarding the forward 12-month price/sales ratio, CRDO is trading at 17.75, higher than the industry’s multiple of 8.99.
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The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has been revised up over the past 60 days.
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CRDO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Credo Technology Group ve 4. fiskálním čtvrtletí vykázala zisk na akcii 1,16 USD a tržby 437 milionů USD, obojí nad odhady. Firma čeká na 1. čtvrtletí tržby 465–475 milionů USD.
It has been about a month since the last earnings report for Credo Technology Group Holding Ltd. (CRDO - Free Report) . Shares have added about 18.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Credo Technology Group due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Credo Technology Group Holding Ltd. before we dive into how investors and analysts have reacted as of late.
Credo's Q4 Earnings & Revenue BeatCredo Technology reported fourth-quarter fiscal 2026 non-GAAP diluted earnings per share of $1.16, which beat the Zacks Consensus Estimate of $1.03 by 12.6%. GAAP diluted earnings rose to 88 cents from 20 cents in the prior-year quarter.
Revenues surged 157% year over year to $437 million and surpassed the consensus mark of $430.1 million by 1.6%. The upside was driven by strong AI connectivity demand, with the top four end customers each contributing at least 10% of revenues.
Management said fourth-quarter revenues exceeded the company’s total fiscal 2025 revenues, highlighting the speed of the current AI infrastructure ramp. Fiscal 2026 revenues surpassed $1.3 billion, more than tripling year over year.
The company’s portfolio is positioned around high-speed copper and optical interconnects that help large AI clusters improve reliability, power efficiency and signal integrity. Management noted that connectivity has become a critical constraint as clusters scale from tens of thousands to hundreds of thousands of GPUs.
AECs remained a key growth engine. In addition to AEC, CRDO is now focusing on the IC portfolio (retimers and DSPs). The company expects mid-single-digit sequential growth in the first half of fiscal 2027, followed by a stronger second-half acceleration buoyed by its optical portfolio. Management projects more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million. This is expected to support more than 80% year-over-year revenue growth for the full year.
The acquisition of Dust Photonics strengthens Credo’s high-speed optical connectivity portfolio with silicon photonics PIC technology. The deal adds advanced technology, including 800G and 1.6T solutions, and would aid in developing upcoming 3.2T solutions.
Margins Reflect Strong Operating LeverageNon-GAAP gross profit was $298.4 million in the fourth quarter compared with $114.5 million in the year-ago period. Non-GAAP gross margin expanded to 68.3% from 67.4% a year earlier.
Non-GAAP operating expenses increased to $81.7 million from $52 million in the prior-year quarter. The increase reflected continued investment in research and development. Non-GAAP operating income rose to $216.7 million from $62.5 million. Non-GAAP net margin reached 51.9% in the fiscal fourth quarter, underscoring the company’s ability to convert top-line growth into bottom-line profitability.
For fiscal 2026, the company reported a non-GAAP gross margin of 68.1%, improving by 310 basis points year over year, while operating margins expanded significantly to 47.8%.
Cash Flow NumbersCash flow from operations was a record $182.2 million in the quarter. Capital expenditures were $4.8 million, resulting in free cash flow of $177.5 million. Credo ended the quarter with cash, cash equivalents and short-term investments of $1.4 billion, up from $431.3 million at the end of the year-ago period.
Outlook Points to Continued ExpansionFor the first quarter of fiscal 2027, Credo expects revenues of $465-$475 million. Non-GAAP gross margin is projected between 67% and 69%, while non-GAAP operating expenses are expected in the range of $86-$90 million.
For fiscal 2027, management expects more than 80% year-over-year revenue growth. The company anticipates non-GAAP gross margin to remain broadly consistent with fiscal 2026 levels and non-GAAP operating expenses to rise approximately 50%, well below the expected revenue growth rate.
Four hyperscalers each contributed 10% or more of total revenues in the last reported quarter, with the top three customers representing 34%, 27% and 16% of revenues. Beyond the traditional hyperscalers, Credo is also seeing increasing demand from emerging Neocloud providers.
Credo continues to expect that three to four customers will account for more than 10% of revenues in the upcoming quarters.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 18.12% due to these changes.
VGM ScoresAt this time, Credo Technology Group has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Credo Technology Group has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerCredo Technology Group is part of the Zacks Electronics - Semiconductors industry. Over the past month, Marvell Technology (MRVL - Free Report) , a stock from the same industry, has gained 2.4%. The company reported its results for the quarter ended April 2026 more than a month ago.
Marvell reported revenues of $2.42 billion in the last reported quarter, representing a year-over-year change of +27.6%. EPS of $0.80 for the same period compares with $0.62 a year ago.
Marvell is expected to post earnings of $0.93 per share for the current quarter, representing a year-over-year change of +38.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Marvell. Also, the stock has a VGM Score of F.
Credo Technology Group oznámila za 4. fiskální čtvrtletí tržby 437 milionů USD, meziročně o 157 %, a non-GAAP EPS 1,16 USD. Za celý fiskální rok 2026 tržby ztrojnásobila na 1,34 miliardy USD.
I am opening with our verdict on Credo Technology Group (NASDAQ:CRDO | CRDO Price Prediction). The stock has rallied 86.94% year to date, and our proprietary model now sees the shares trading almost exactly where they should.
The 24/7 Wall St. price target for Credo is $263.97, which sits a hair below the last close of $268.99. That implies 1.87% downside, a hold rating, and a 90% (high) confidence reading.
Metric Value Current Price $268.99 24/7 Wall St. Price Target $263.97 Upside/Downside -1.87% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong Our 24/7 Wall St. price target sits a touch below where Credo trades today, and that gap is small enough to flip. The bull catalysts are real: the just-closed Dust Photonics acquisition opens a silicon photonics path to 3.2 Tbps, and management is guiding to more than $600 million in optical revenue for fiscal 2027. Treat our target as one datapoint. A full bull case sits below.
From $79 to $269 in a Year Credo has been one of the AI infrastructure trade’s cleanest winners. The stock is up 192.63% over the past year, 23.16% over the past month, and 7.89% in the past week alone. Shares now trade 17% below the 52-week high of $308.67 and well above the $84.25 low.
The fuel is fundamental. Q4 FY26 revenue hit $437 million, up 157.02% year over year, with non-GAAP EPS of $1.16 beating the $1.0341 estimate by 12.17%. Full-year FY26 revenue tripled to $1.34 billion, and non-GAAP net income grew more than 5x to $662 million.
The Case for $335 and Higher Our bull-case path lands at $335.34 over the next 12 months, a 24.67% gain. The setup is credible. CEO Bill Brennan guided FY27 revenue growth to more than 80% year over year, with Optical DSPs, SiPho PICs, and ZeroFlap optics each contributing more than $100 million.
He also flagged Neo Cloud customers eventually reaching roughly 20% of total revenue. The Street’s bullish camp is thick: 4 Strong Buy, 13 Buy, 1 Hold, 0 Sell ratings.
The Risks Worth Watching The bear path takes Credo to $207.53, or 22.85% downside. Customer concentration is the headline risk: in Q4, the top customer was 34% of revenue and the second largest was 27%. Inventories also jumped to $250.8 million, and the trailing P/E sits at 108.
In fairness, bulls would counter that the inventory build supports the FY27 optical ramp Brennan described, and the forward P/E is a more digestible 51. Composite sentiment has also slipped 10.03 points over 30 days.
Credo Price Prediction 2026-2030 The 24/7 Wall St. price target of $263.97 is functionally on top of the current quote, our recommendation is hold, and our confidence is 90%. The decisive factor is valuation symmetry: trailing multiples have caught up to FY26’s spectacular growth.
The bullish trigger to watch is whether the FY27 optical ramp tracks ahead of the $600 million bar and Neo Cloud customers diversify the top-line. The bearish trigger is whether the top-two customers slow orders or gross margin slips below the 67% to 69% guide.
Looking further out, here is where our model projects Credo could trade, assuming the optical inflection plays out and AI capex stays elevated.
Year 24/7 Wall St. Price Target 2026 $263.97 2030 $294.24 These projections assume Credo continues converting design wins into revenue. Significant upside could emerge from CPO and NPO traction in FY28, while a hyperscaler capex pause is the largest downside risk.
Credo Technology Group prudce roste poté, co Stifel zvýšil cílovou cenu na $350 a Evercore ISI zahájil pokrytí s cílem $325. Akcie jsou na novém 52týdenním maximu.
Credo Technology Group (NASDAQ:CRDO) stock climbed Monday after Wall Street analysts raised their outlook on the AI connectivity chipmaker.
On Monday, Stifel maintained its Buy rating on Credo and increased its price forecast to $350. Evercore ISI Group initiated coverage on Credo with an Outperform rating. The firm announced a price forecast of $325.
The update follows recent recommendations from market commentator Jim Cramer, who recommended holding the stock on June 15, describing the company as “just so good.”
The analyst upgrades follow Credo’s fiscal fourth-quarter earnings report, published after the market close on June 1. The company posted revenue of $437 million, beating analyst estimates of $432.05 million. Adjusted earnings reached $1.16 per share, ahead of expectations of $1.03 per share.
Total revenue rose 157% year-over-year, supported by $1.4 billion in cash and short-term investments. Despite the earnings beat, the stock initially fell 13.67% to $195.32 during after-hours trading on June 1 due to short-term trader de-risking.
Workplace Honors and Corporate MissionCRDO’s Key Support and Resistance LevelsCRDO is in a clear long-term uptrend, trading well above every major moving average: about 23.8% above the 20-day SMA ($231.84) and roughly 86.8% above the 200-day SMA ($153.60).
Trend structure has stayed constructive since the golden cross in May (the 50-day SMA moving above the 200-day SMA), and the stock has continued to build on that bullish backdrop.
Key Resistance: $274.90 Key Support: $231.84 Credo Technology Price ActionCRDO Price Action: Credo Technology Group shares were up 5.04% at $285.52 during premarket trading on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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BNP Paribas vidí u Credo adresovatelný trh nad 10 miliardami USD, protože agentic AI pohání budování backendových i frontendových sítí u hyperscalerů a neocloudů. Evercore ISI zahájila pokrytí CRDO s doporučením Outperform a cílovou cenou 325 USD.
The firm sees Credo’s total addressable market swelling above $10 billion as agentic AI drives backend and frontend network builds across hyperscalers and neoclouds.
CRDO stock is moving. See the chart and price action here. BNP Paribas underscores that Credo’s push into optics is additive, not a signal that short‑reach copper is fading.
The company still expects roughly half of its roughly 80% year‑over‑year fiscal 2027 growth to come from Active Electrical Cables, implying about 47% growth to approximately $1.8 billion of AEC revenue.
Credo argues its SerDes-plus system‑level approach yields tighter integration, better reliability, and latency of roughly 6 ns versus peers at around 10 ns, which could matter as AI clusters become more scale‑out and latency-sensitive.
Optics Optics is the other major leg of the story. BNP Paribas expects more than $600 million of fiscal 2027 revenue from ZeroFlap (ZF) optical transceivers, optical DSPs and DustPhotonics Ltd photonic integrated circuits, approaching a 25% mix and offering margin accretion versus the corporate average.
Credo plans to ship hundreds of thousands of ZF transceiver units per month by late fiscal 2027, with a two to three-times volume ramp over the subsequent years as it broadens beyond its initial two hyperscalers and two neoclouds.
The DustPhotonics acquisition is central to Credo’s optical differentiation. DustPhotonics’ PICs use proprietary Low Loss Laser Coupling technology to cut laser count by about 75%, from eight lasers to two.
Branching OutCustomer concentration risk appears to be easing with BNP Paribas expecting Credo to have three to four 10% hyperscale customers in fiscal 2027.
Evercore ISI initiated coverage on CRDO Monday with an Outperform rating and a $325 price target. The analysts highlighted Credo’s systems approach—design, manufacturing, and end‑to‑end testing—as a key competitive advantage versus traditional optical module vendors.
The firm expects Credo’s optical revenue alone to reach more than $600 million by 2028, supported by investments in optical DSPs and differentiated module architectures.
The TakeawayTaken together, both firms view Credo as evolving from a pure‑play AEC vendor into a dual copper‑and‑optical AI connectivity platform with hyperscaler‑grade scale, expanding TAM and a roadmap tied directly to the next wave of agentic AI infrastructure build‑outs.
CRDO Stock Price Activity: Credo stock was up 7.67% at $292.67 at the time of publication on Monday, according to data from Benzinga Pro.
Over the past month, CRDO has gained about 27.4% versus a 0.7% decline in the S&P 500 and is up roughly 96% year-to-date compared to the index’s 8.6% gain. The stock is trading at new 52-week highs.
Photo: Explode / Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
