Credo just posted triple-digit revenue growth and its eighth straight earnings beat, then watched shares crater nearly 19%. Before you write off the damage, consider what analysts say happens next.
Credo (NASDAQ:CRDO | CRDO Price Prediction) just delivered one of the cleanest AI infrastructure earnings reports of the cycle, then watched its stock get taken apart. Revenue of $479 million grew 114.73% year over year, the eighth straight EPS beat landed, and management guided Q2 to $525 million to $535 million. Shares still fell 18.82% over the past week.
CEO Bill Brennan told investors Credo’s portfolio now spans connectivity “from millimeters to kilometers, with solutions across optics and copper.” So the question I want to answer: can Credo actually reach $300 per share by 2027?
Why Credo Shares Cratered After a Blockbuster Beat Let me be blunt. This selloff is about positioning and expectations. Credo entered earnings after a monster run, with the stock printing $308.67 at its 52-week high and trading near $249.89 a month ago. The revenue beat of 1.83% was tight versus prior blowouts like Q2 FY26’s 14.06% topline surprise, and buyside models had already priced in a bigger number.
As Barron’s noted, the stock plunged despite the beat as analysts weighed in. Add a beta of 3.228, and any expectations reset gets amplified. Shares are still up 16.58% year to date and 13.71% over one year. The panic looks like profit-taking.
Wall Street Sees 68% Upside. My Case Goes Higher The Street consensus price target sits at $281.39, implying roughly 68% upside from here. Coverage skews aggressively bullish: 4 Strong Buy, 14 Buy, and 1 Hold, with zero sells and analyst sentiment logging 95% bullish.
Our internal model is more measured, pegging a base case of $205.52 with high confidence at 0.9, an optimistic path to $332.48, and a conservative floor at $167.21.
I think the base case is too cautious. Forward EPS estimates for fiscal 2028 have been revised from $8.6228 ninety days ago to $9.6260 today. That is not a company decelerating.
Path to $300 Per Share Reaching $300 from today’s price of $167.75 would require a gain of 78.8%. With forward EPS of $4.31, a price of $300 implies a forward P/E of 70x. Our base case of $205.52 already implies 41x, meaning $300 requires roughly 29x of additional multiple expansion. That sounds steep until you look at the growth.
Management guided fiscal 2027 revenue growth of more than 85% year over year, with optical alone expected to top $600 million. The 247Factor adjustment of 1.179 reflects sector momentum of 1.15 and 95% bullish analyst consensus.
Brennan called fiscal 2027 “just a stepping stone” for the optical business, with Active LED Cables framed as a “big multi-billion dollar opportunity.” If FY28 EPS lands near $9.626, $300 collapses to roughly 31x forward, entirely reasonable for a company doubling revenue. Customer concentration remains the single biggest risk, with the top customer at 33% of Q1 revenue.
Where Credo Trades vs Its Earnings Power At $167.75, Credo trades at roughly 39x forward EPS of $4.31. That looks expensive on the surface. It looks a lot cheaper when you overlay 205.68% full-year revenue growth in fiscal 2026 and forward EPS revisions moving up, not down.
Shares sit well off the 52-week high of $308.67 and comfortably above the low of $86.48. The five-year return of 1339.91% tells you what happens when the market finally recognizes AI infrastructure exposure. This dip creates the entry point.
Is $300 Realistic? My Verdict Reaching $300 requires a 78.8% gain from here, and I think it is achievable, though not automatic. Three things need to go right. First, Credo must execute on the optical ramp, particularly 1.6T DSP revenue landing later in fiscal 2027.
Second, forward EPS estimates need to keep drifting higher toward $9.6260 for fiscal 2028.
Third, the market has to reward the vertically integrated story with a growth multiple rather than a cyclical one. Credo sits inside the same picks-and-shovels bucket we mapped out in a free report on seven AI infrastructure names beyond the chipmakers.
What derails it? A hyperscaler pause or a loss of share at the top customer. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Credo could reach $300 in 2027.
Contact [email protected] for any questions or corrections.
Credo Technology Group vidí další růst AEC díky pěti hyperscalerům, většímu prosazení u zákazníků a zájmu neocloudových firem. Přechod na porty 1,6T s rychlostí 200 gigabitů na linku přidává další příležitost.
Key Takeaways Credo sees AEC growth supported by five hyperscalers, Neocloud traction and rising customer penetration.Credo views the shift to 200-gig-per-lane 1.6T ports as another growth opportunity for its AEC business.Neocloud expansion could diversify Credo's customer base. Credo Technology Group Holding Ltd. (CRDO - Free Report) continues to see a healthy growth runway for its Active Electrical Cables (AECs) business, supported by deeper penetration at hyperscalers, rising data rates and growing traction with Neocloud customers.
AECs are a system-level product for CRDO and its core growth engine. Credo believes its system-level approach, which combines silicon, firmware, manufacturing tests and qualification, remains a key differentiator.
The company now has deep relationships with five hyperscalers, alongside expanding engagement with Neocloud customers. Importantly, Credo continues to see higher AEC penetration within existing customers as deployments scale, while the shift toward 200-gig-per-lane 1.6T ports provides another growth opportunity.
The Neocloud opportunity could help diversify Credo’s customer base. Credo’s customer concentration, with its four largest customers accounting for 33%, 28%, 13% and 10% of first-quarter fiscal 2027 revenues, respectively. Management continues to expect three to four customers to contribute greater than 10% of revenues in the upcoming quarters.
Heavy reliance on a few hyperscalers can introduce volatility, particularly as customer mix can fluctuate from quarter to quarter.
Credo is actively working to reduce this reliance through a diversification strategy across hyperscalers, neo clouds and other customers. Neo cloud providers are emerging players in the AI infrastructure space. This set of cloud providers is heavily focused on building AI infrastructure to support a wide range of applications, from model development to inference AI and even Agentic AI workloads. This bodes well for CRDO’s AECs business.
Still, AEC growth rates are likely to moderate as the business scales. Management noted that AEC revenues more than doubled from fiscal 2024 to fiscal 2025 and more than tripled from fiscal 2025 to fiscal 2026. With optics ramping from a smaller base, that business is expected to grow faster.
However, Credo faces intense competition in the semiconductor industry from players such as Marvell Technology (MRVL - Free Report) and Broadcom (AVGO - Free Report) .
Mapping Competitive TerrainMarvell Technology reported second-quarter fiscal 2027 data center revenues of $2.17 billion, up 46% year over year and 18% sequentially. Tailwinds across interconnect, switching and custom businesses remain the key growth drivers. Connectivity demand for AI infrastructure is driving demand for interconnect and switching products, particularly scale-out applications. Marvell Technology expects copper and optical interconnects to coexist for several years, even as larger scale-up deployments increasingly migrate toward optics.
Management raised its fiscal 2027 revenue outlook to roughly $12 billion, up from the prior view of approximately $11.5 billion. Data center revenues are now expected to grow about 60% this year, up from 50% expected earlier. For fiscal 2028, Marvell Technology expects revenues of approximately $18 billion, representing roughly 50% year-over-year growth, with data-center revenues projected to increase more than 60%.
Broadcom represents significant competitive pressure given its broad AI networking footprint. Third-quarter fiscal 2026 AI semiconductor revenues grew 221% year-over-year and up 54% sequentially to $16.7 billion. The company highlighted increasing adoption of its custom accelerators (XPUs) across its six XPU customers. XPU shipments grew more than 3.5 times year on year and represented 73% of AI revenues. The company expects fiscal 2026 AI revenues of about $58 billion, up 186% year over year and approximately $115 billion in fiscal 2027. Broadcom further sees AI semiconductor revenues doubling again to roughly $230 billion in fiscal 2028.
Alongside custom accelerators, networking is expected to remain a major growth engine, with management expecting AI networking revenues to grow at a pace similar to XPUs over the next few years.
CRDO Price Performance, Valuation and EstimatesShares of CRDO are down 30.6% in the past month compared with the Electronics-Semiconductors industry’s decline of 8.1%.
Image Source: Zacks Investment Research
CRDO is trading at a forward 12-month price/earnings ratio of 24.03X, higher than the Electronics-Semiconductors sector’s multiple of 13.31X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2027 has seen a marginal upward revision over the past 60 days.
Image Source: Zacks Investment Research
CRDO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Credo Technology po výsledcích dál prudce klesá a v premarketu odepsala více než 9 % na nejnižší úroveň od 30. července. Trh ji trestá hlavně kvůli vysokému forward GAAP P/E 45.
Buy MRVL vs CRDO. Both are AI connectivity plays, but CRDO’s valuation is the bigger problem (much higher forward P/E). If the group de-rates, the higher-multiple name falls harder; MRVL should hold up better on a relative basis while still benefiting from AI infrastructure spend.
Key Risk: MRVL’s own results/guidance disappoint or its AI connectivity share gains stall, causing both names to fall together.
CRDO short
Sell short CRDO. Even with strong QoQ growth and higher GAAP gross margin, the market is punishing valuation: forward GAAP P/E ~45 vs sector ~29. The chart confirms momentum is bearish (below 50% Fib, 50/100-day EMAs, double-top-like reversal). Target ~$171 (61.8% Fib) and cover into any bounce.
Key Risk: AI/data-center demand stays so strong that guidance and margins re-accelerate enough to justify the premium multiple, forcing a valuation-driven squeeze higher.
Credo Technology Group stock continued its strong freefall, even after the company published encouraging financial results. CRDO dropped by over 9% in the premarket session, reaching its lowest level since July 30th. It has now remained deep inside a bear market after falling by nearly 40% from its highest level this year.
CRDO stock has slumped substantially in the past few months, moving from the year-to-date high of $308.30 to $192 today. This retreat happened even as the company continues growing, thanks to the soaring demand for its products and services.
For starters, Credo Technology Group designs high-speed connectivity chips and cables that are mostly used in AI data centers, cloud infrastructure, and networking equipment. These products allow processors to communicate with each other quickly and efficiently. It competes with companies like Marvell Technology, Broadcom, and Astera Labs.
Credo released its earnings report on Tuesday, providing more insights about its business, which continued to see more demand. Its revenue jumped by 9.6% QoQ to $479 million. This increase was about 114.7% higher than what it made in the same period last year.
The company’s GAAP gross margin rose to 64.5%, while its GAAP net income rose to $129.4 million. While its net income rose sharply from $64 million in the same period last year, it was down from the $169 million it made in fourth quarter of fiscal year 2026. In a statement, Bill Brennan, the CEO said:
“Our portfolio now spans connectivity from millimeters to kilometers, with solutions across optics and copper. As AI infrastructure scales, we will continue to provide an innovative suite of reliable and energy-efficient connectivity solutions for the data center.”
Credo expects that its revenue growth will continue as the data center buildup continues in the US and other countries. Indeed, most of its customers, including firms like Amazon, Microsoft, and SpaceX have all pledged to boost their data center spending. In total, data center spending is expected to be over $1 trillion this year.
A major issue is that Credo is a highly overvalued, with the forward price-to-earnings ratio on a GAAP basis rising to 45, much higher than the technolgy sector median of 29. It is also significantly higher than other top companies like Dell and Nvidia.
CRDO stock chart | Source: TradingView
Technicals suggest that the CRDO stock may have a strong downward trend in the near term. It has dropped from a high of $308.30 in June to the current $191.
This retreat, which is in line with our prediction, happened after it formed a double-top-like pattern, a common bearish reversal pattern in technical analysis. It has now moved below the 50% Fibonacci Retracement level.
The stock has dived below the 50-day and 100-day Exponential Moving Average (EMA), a sign that bears are in control for now. This retreat may continue in the near term, potentially to the 61.8% retracement level at $171.
Credo uvedlo, že optika je jeho dalším růstovým motorem a výnosy z optiky mají ve fiskálním roce 2027 přesáhnout 600 milionů USD. Tržby za 1. čtvrtletí činily 479 milionů USD a EPS byl 1,20 USD.
Key Takeaways Credo sees optics as its next growth engine, with fiscal 2027 optical revenues set to exceed $600 million.Optical DSP revenues hit a record, while initial 1.6T DSP revenues remain targeted for later in fiscal 2027.AECs remain Credo's largest business, with 1.6T AEC contributions expected in the second half of fiscal 2027. Credo Technology Group Holding Ltd (CRDO - Free Report) used the first-quarter fiscal 2027 call to frame optics as the next major leg of growth, while keeping AECs central to its connectivity portfolio.
Non-GAAP earnings per share of $1.20 topped the Zacks Consensus Estimate of $1.17. Revenues of $479 million also beat the consensus estimate of $475.7 million.
CRDO Sets a Higher Bar for Fiscal 2027Chief financial officer Daniel Fleming guided fiscal second-quarter revenues to $525-$535 million, with non-GAAP gross margin of 67-69% and non-GAAP operating expenses of $100-$105 million.
Fleming said fiscal 2027 revenues are still expected to grow more than 85% year over year, supported by an inflection in the second half. He also maintained an outlook for non-GAAP net margin near 50%.
President, CEO and chairman William Brennan centered that growth case on optics, saying the optical portfolio remains on track to generate more than $600 million of fiscal 2027 revenues.
Credo Builds Out the Optical Growth EngineBrennan said optical DSP revenues reached a record in the quarter, with 50-gig and 100-gig-per-lane products contributing. Initial 1.6T DSP revenues remain targeted for later in fiscal 2027.
CEO also highlighted the first silicon photonics PIC revenues following the DustPhotonics acquisition. Initial wins span 800-gig and 1.6T transceivers, with ramps expected through the year.
In Q&A, a Stifel analyst asked about the optical mix. Brennan said fiscal 2027 is a stepping stone for optics and noted two major next-generation design wins expected to ramp in fiscal 2028, with some ramps able to begin late in fiscal 2027.
CRDO Keeps AECs in the Growth MixBrennan stated that AECs remain Credo's largest business, supported by deeper penetration with five hyperscalers, expanding NeoCloud activity and the coming transition to 200-gig-per-lane 1.6T ports.
Responding to a Jefferies analyst, Brennan said 1.6T AECs should begin contributing in the second half of fiscal 2027 and become more meaningful in fiscal 2028.
A BofA Securities analyst pressed on longer-term AEC growth. Brennan said AECs should keep expanding but at a slower pace than optics, reflecting the cable business's much larger starting base.
Credo Balances Ramps, Supply and Customer MixFleming said the top four end customers represented 33%, 28%, 13% and 10% of revenues, respectively. He expects three to four customers to remain above 10% in coming quarters while diversification continues.
Responding to a TD Cowen analyst, Fleming added that product usage is broadening within hyperscaler accounts and is not limited to AECs.
A Barclays analyst asked about scaling ZeroFlap volumes amid supply constraints. Brennan said Credo had been working on supply readiness for the past 18-24 months. Fleming reported inventory rose $62.2 million sequentially to $313.1 million.
CRDO Pushes Reliability as a System AdvantageBrennan described ZeroFlap Optics as a system-level effort combining optical hardware, PILOT software and switch-level integration. Production shipments are underway, with additional fiscal 2027 ramps expected across 800-gig and 1.6T.
A William Blair analyst asked whether PILOT telemetry could deepen Credo's moat. Brennan said the platform continuously monitors link-health indicators and can identify instability before failure, supporting faster cluster bring-up and higher network availability.
A ROTH Capital analyst asked about differentiation. Brennan said vertical integration across SerDes, DSPs and silicon photonics can improve system performance and costs, while differentiated features can support an ASP advantage over more standards-based solutions.
Credo Keeps the Focus on ExecutionBrennan's closing message was that AECs continue to expand while optics grows faster, broadening Credo's opportunity from components to complete optical and near-package solutions.
Fleming reinforced that posture with continued heavy R&D investment as operating leverage remains a priority. The near-term focus is executing second-half ramps while funding products aimed at fiscal 2028 opportunities.
CRDO's Zacks Signals Remain MixedCRDO carries a Zacks Rank #3 (Hold). Its Growth Score of A is favorable, while the Value Score of F, Momentum Score of C and VGM Score of C leave a mixed Style Scores profile and do not match the top-ranked A or B-score combinations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Rank and Style Scores are designed to assess near-term prospects, with higher Style Scores indicating better expected performance. The rank can change as analysts revise estimates after the just-reported results, so the current readings are not fixed.
Credo Technology Group oznámila zisk 1,2 USD na akcii a tržby 479 mil. USD za čtvrtletí, obojí nad odhady. Zisk byl také výrazně nad 0,52 USD před rokem.
Credo Technology Group Holding Ltd. (CRDO - Free Report) came out with quarterly earnings of $1.2 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.56%. A quarter ago, it was expected that this company would post earnings of $1.03 per share when it actually produced earnings of $1.16, delivering a surprise of +12.62%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Credo Technology Group, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $479 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.69%. This compares to year-ago revenues of $223.07 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Credo Technology Group shares have added about 57.2% since the beginning of the year versus the S&P 500's gain of 12.3%.
What's Next for Credo Technology Group?While Credo Technology Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Credo Technology Group was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.25 on $502.69 million in revenues for the coming quarter and $6.02 on $2.35 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Ambarella (AMBA - Free Report) , another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 3.
This video-compression chipmaker is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +6.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Ambarella's revenues are expected to be $108.03 million, up 13.1% from the year-ago quarter.
Credo Technology Group vykázala rekordní tržby za 1. fiskální čtvrtletí 2027 ve výši 479 milionů USD, což je meziročně o 115 % více. Firma zároveň ve 2. čtvrtletí očekává tržby 525 až 535 milionů USD.
AMD’s Helios Launch Could Create Winners Beyond AMD StockCredo Technology Group NASDAQ: CRDO reported record fiscal first-quarter 2027 revenue of $479 million, up 10% sequentially and 115% from a year earlier, as demand for AI infrastructure connectivity products continued to expand.
Chief Executive Officer Bill Brennan said the company’s growth has been supported by rising AI cluster sizes, faster data rates and increasing requirements for reliable, power-efficient connectivity. Credo recorded its seventh consecutive quarter of triple-digit year-over-year revenue growth, according to management.
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5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest?“AECs continue to grow. Optics is growing faster,” Brennan said, referring to active electrical cables and the company’s expanding optical portfolio.
Profitability and second-quarter outlook Chief Financial Officer Dan Fleming said non-GAAP gross margin was 68% in the first quarter, while non-GAAP operating income totaled $230.6 million and non-GAAP operating margin was 48.2%.
3 Quiet AI Revenue Accelerators With Sales Growth Outpacing PeersNon-GAAP net income reached a record $236.3 million, up 4% sequentially and more than doubling from the prior-year period. Non-GAAP net margin was 49.3%.
Cash flow from operations was $90.2 million, while capital expenditures were $7.3 million, resulting in free cash flow of $82.9 million. The company ended the quarter with $764.3 million in cash and equivalents, down $679 million from the prior quarter primarily because of the cash outlay for its DustPhotonics acquisition. Ending inventory rose $62.2 million sequentially to $313.1 million.
For the fiscal second quarter, Credo forecast:
Revenue of $525 million to $535 million. Non-GAAP gross margin of 67% to 69%. Non-GAAP operating expenses of $100 million to $105 million. Diluted weighted-average share count of about 200 million shares. Fleming said the outlook is based on the current tariff regime, which he described as fluid. For fiscal 2027, the company continues to expect more than 85% year-over-year total revenue growth, non-GAAP gross margin broadly in line with fiscal 2026 levels, and non-GAAP net margin near 50%.
Optics targeted as a new growth engine Management reiterated its expectation for more than $600 million in optical revenue during fiscal 2027. The company expects its optical digital signal processors, silicon photonics PICs and ZeroFlap Optics offerings to each contribute more than $100 million during the year.
Credo’s optical DSP business generated record first-quarter revenue, including deployments of 50G- and 100G-per-lane products. Brennan said the company expects initial 1.6T DSP revenue later in fiscal 2027 and sees a continuing market for 800G ports during the transition to higher speeds.
The company also recognized its first silicon photonics PIC revenue following the DustPhotonics acquisition. Initial wins are in 800G and 1.6T optical transceivers, with products expected to ramp through the year. Brennan said the first two major DustPhotonics-related design wins do not include Credo DSPs, leaving potential for combined DSP and PIC sales over time.
Credo is also pursuing near-package optics, or NPO, for scale-up networks, where management expects denser form factors will be needed. The company joined an Open Compute Project MSA consortium and expects confirmed NPO design wins to begin ramping in fiscal 2028. Brennan said Credo plans to lead with silicon photonics PICs in NPO-related opportunities while also considering complete optical-engine offerings over the longer term.
ZeroFlap, AEC and emerging products Production shipments of ZeroFlap Optics are underway, with additional customer ramps expected in fiscal 2027 across 800G and 1.6T products for hyperscalers and neo clouds. The offering combines optical hardware, Credo’s PILOT software platform and switch-level software development kit integration to monitor link health and identify potential instability.
Brennan said the system is designed to identify deteriorating link conditions before a failure occurs, allowing customers to mitigate issues. He said telemetry can track measures including eye height, signal-to-noise ratio and post-forward-error-correction histograms, and can also help identify potential electrostatic-discharge damage or dust-related fiber issues.
Active electrical cables remained Credo’s largest business and continued to grow, supported by relationships with five hyperscalers and expanding neo cloud engagement. The company expects higher data rates, including a move toward 200G per lane and 1.6T ports, to provide another growth driver. Brennan said AEC contributions at 1.6T should begin in the second half of fiscal 2027 and become more significant in fiscal 2028.
Retimer revenue also reached a record in the first quarter, driven primarily by scale-up deployments of the Screaming Eagle product at 100G per lane and initial contributions from Blue Heron at 200G per lane.
Looking further ahead, Credo plans to demonstrate Active LED Cable solutions at OFC in October and remains on track for initial revenue in fiscal 2028. The company also expects OmniConnect SerDes and Weaver Gearbox solutions, aimed at memory bandwidth and capacity constraints in AI inference systems, to begin contributing revenue in fiscal 2028.
Customer concentration and investment Credo’s four largest customers represented 33%, 28%, 13% and 10% of first-quarter revenue, respectively, Fleming said. Management expects three to four customers to account for more than 10% of revenue in coming quarters while continuing to diversify across hyperscalers, neo clouds and other customers.
First-quarter non-GAAP operating expenses rose 16% sequentially to $95.2 million, exceeding the company’s guidance range because of research-and-development investment. For the full fiscal year, Credo expects operating expenses to rise about 55% year over year, below its anticipated revenue growth rate, as it funds new product development and broader market opportunities.
About Credo Technology Group (NASDAQ:CRDO)Credo Technology Group, Inc NASDAQ: CRDO is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.
Credo's product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Credo Technology Group Holding Ltd. dnes po uzavření trhu oznámí výsledky za 1. fiskální čtvrtletí 2027; odhad trhu počítá s EPS 1,17 USD a tržbami 471,77 milionu USD. Akcie jsou zhruba 22,3 % nad 200denním průměrem, ale krátkodobě slábnou.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares are in the spotlight Tuesday, with earnings on deck today, key growth metrics in focus, a technical setup showing a cooling trend and Edge Rankings all drawing attention.
Credo shares are retreating from recent levels. Why is CRDO stock falling? Earnings Preview & HistoryCredo is scheduled to report first-quarter fiscal-year 2027 earnings today after market close. Analysts estimate EPS of $1.17 along with revenue of $471.77 million. For the prior quarter, Credo reported EPS of $1.16, beating the consensus estimate of $1.03. The company also posted revenue of $437.00 million, exceeding consensus expectations of $432.05 million.
What to Watch: Credo’s $600M Optical Targets, Hyperscaler MixInvestors will be closely tracking progress toward Credo’s optical revenue targets, with management projecting more than $600 million for fiscal 2027, split roughly evenly across ZeroFlap optics, silicon photonics, and optical DSPs, though the most significant acceleration isn’t expected until the second half of the year. Hyperscaler customer concentration will also be in focus, since four hyperscalers each contributed more than 10% of total revenue last quarter, alongside continued momentum in Credo’s active electrical cable and retimer products, including its Blue Heron 200-gig-per-lane offering.
Gross and operating margin trends should draw additional attention, given last quarter’s non-GAAP gross margin of 68.3% and operating margin of 49.6%, along with any commentary on the integration of Credo’s recently completed DustPhotonics acquisition.
A Cooling Trend Meets a “Hold or Fail” DecisionCredo is trading about 10.8% below its 20-day SMA ($240.06) and about 9.5% below its 50-day SMA ($236.55), which tells you the near-term trend has cooled and rallies are meeting supply sooner. It’s also about 2.2% below the 100-day SMA ($218.89), putting the stock right around an area where trend followers often look for a "hold or fail" decision.
Momentum-wise, MACD is below its signal line and the histogram is negative, which points to fading upside pressure versus the prior upswing. In plain terms, when MACD sits under the signal line, it often means buyers need a fresh push to regain control rather than relying on the prior trend.
The bigger-picture trend is still constructive: the stock remains about 22.3% above its 200-day SMA ($175.05), and the 50-day SMA is still above the 200-day SMA (the golden cross that occurred in May). Key levels traders tend to watch here include:
Key Support: $211.50 — a nearby level where buyers previously stepped in, close to current price and a logical spot for dip-buyers to defend
Key Resistance: $241.00 — a nearby rebound-stall zone that lines up closely with the 50-day/20-day moving-average area overhead
Benzinga Edge RankingsBelow is the Benzinga Edge scorecard for Credo Technology Group Holding Ltd Ordinary Shares, highlighting its strengths and weaknesses compared to the broader market:
Momentum: Bullish (Score: 95.83) — Even with today’s drop, the longer trend has been strong versus the broader market. Value: Weak (Score: 4.58) — The stock screens as expensive, which can make pullbacks sharper when sentiment cools. Growth: Bullish (Score: 99.69) — The market is still treating CRDO as a top-tier growth story, which supports upside when risk appetite returns. The Verdict: Credo Technology Group Holding Ltd Ordinary Shares’s Benzinga Edge signal reveals a classic High-Flyer setup—elite Growth and Momentum paired with a very weak Value score. That mix can work well in uptrends, but it also means the stock may stay volatile when Technology is the market’s weakest pocket.
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Credo Shares DropCRDO Price Action: At the time of publication, Credo shares are trading 5.07% lower at $214.72, according to data from Benzinga Pro.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Credo Technology zveřejní výsledky za 1. fiskální čtvrtletí po uzavření trhu v úterý; analytici čekají zisk 1,17 USD na akcii a výnosy 470,38 milionu USD.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) will release its first quarter earnings report after the closing bell on Tuesday, Sept. 1.
Analysts expect the company to report quarterly earnings of $1.17 per share, up from 52 cents per share in the year-ago period. The consensus estimate for Credo Technology’s quarterly revenue is $470.38 million. It reported $223.07 million last year, according to Benzinga Pro.
On June 1, Credo Technology Group posted better-than-expected fourth-quarter earnings.
Shares of Credo Technology fell 3.1% to close at $232.75 on Friday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Rosenblatt analyst Mike Genovese maintained a Neutral rating with a price target of $215 on Aug. 24, 2026. This analyst has an accuracy rate of 84%. TD Cowen analyst Sean O’Loughlin maintained a Buy rating and increased the price target from $260 to $300 on Aug. 18, 2026. This analyst has an accuracy rate of 72%. Susquehanna analyst Christopher Rolland maintained a Positive rating and raised the price target from $235 to $250 on July 21, 2026. This analyst has an accuracy rate of 81%. Barclays analyst Thomas O’Malley maintained an Overweight rating and boosted the price target from $260 to $300 on July 20, 2026. This analyst has an accuracy rate of 87%. B of A Securities analyst Vivek Arya maintained a Buy rating and increased the price target from $252 to $340 on June 23, 2026. This analyst has an accuracy rate of 85%. Trending
Considering buying CRDO stock? Here’s what analysts think:
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Credo Technology vykázala ve 4. čtvrtletí tržby 437 milionů USD, což je meziročně o 157 % více, a non-GAAP EPS 1,16 USD překonal odhady o 12,17 %. Vedení zároveň očekává, že tržby ve FY2027 porostou o více než 80 %.
Credo Technology exploded from double digits to over $300 in a single year, but the setup heading into fiscal 2027 is a fundamentally different bet, and the math behind our price target reveals exactly where the risk-reward gets interesting again.
Credo Technology has been one of the most explosive AI infrastructure stories of the past year, but the setup heading into fiscal 2027 is a different animal from the one that carried shares from double digits to over $300. With the model now pointing to modest upside and volatility running hot, I want to lay out our 24/7 Wall St. price target and walk through the math.
Credo (NASDAQ:CRDO | CRDO Price Prediction) trades at $224.63 as of midday Tuesday. Our 24/7 Wall St. price target for Credo is $234.55, implying roughly 4.58% upside over the next 12 months. We rate the stock a hold with 90% confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $224.63 24/7 Wall St. Price Target $234.55 Upside 4.58% Recommendation HOLD Confidence Level 90% A Wild Year, and a Sharp Week Credo has been a monster. Shares are up 95.2% over the past year and 54.71% year to date, sitting just off a 52-week high of $308.67. The past week told a different story, with the stock down 21.29% from $282.82 as the group digested a torrid run.
Fundamentals remain excellent: fourth-quarter revenue hit $437 million, up 157% year over year, and non-GAAP EPS of $1.16 beat consensus by 12.17%, the fourth consecutive beat. Full-year FY2026 revenue more than tripled to $1.3 billion.
Why Bulls See a Breakout to $330 Plus Management guided FY2027 revenue growth of more than 80% year over year, anchored by more than $600 million of optical revenue with ZeroFlap optics, silicon photonics PICs, and optical DSPs each expected to top $100 million.
The Dust Photonics acquisition adds an 800 gig and 1.6T roadmap, and NeoCloud operators could eventually represent on the order of 20% of revenue. Wall Street consensus target sits at $283.23 with 18 Buy or Strong Buy ratings, and our bull case scenario reaches $334.01.
Risks Worth Watching Customer concentration is the elephant in the room: the top customer alone represented 34% of Q4 revenue, and four customers each topped 10%. Inventory rose to $250.8 million, and gross margin faces optical ramp pressure.
Bulls counter that margins have proved resilient: Q4 non-GAAP gross margin actually expanded to 68.3% versus the year prior. Trailing P/E of 92 also leaves little cushion. Our bear scenario targets $187.53.
How Credo Compares to Astera Labs and Marvell Astera Labs (NASDAQ:ALAB) is the closest pure-play comp, competing directly for hyperscaler connectivity dollars with its Scorpio fabric switches and Aries retimers. ALAB competes for the same hyperscaler connectivity dollars and carries a premium multiple as a high-growth pure-play. On that yardstick, Credo’s forward P/E near 39 starts to look reasonable.
Marvell Technology (NASDAQ:MRVL) is the scaled incumbent in custom AI silicon and 800G/1.6T optics. Marvell’s slower growth profile at a much larger revenue base frames Credo as the higher-torque story, which supports our target sitting above the current price but well below the Street’s $283.
Where the Risk-Reward Sits Now Our 24/7 Wall St. price target of $234.55 and hold rating reflect a great business at a fair price after an extraordinary run. The low $200s is where the risk-reward improves materially on a pullback.
Execution risk rises if the optical ramp slips or the top customer’s mix expands further. Credo is a long-term winner, and spotting the next one early tends to follow a pattern we mapped out in a free playbook on the traits behind past 100x tech runs. The entry point matters.
Credo Price Prediction 2026 to 2030 Year 24/7 Wall St. Price Target 2026 $234.55 2027 $236.84 2028 $234.42 2029 $268.81 2030 $263.80 These projections assume Credo executes on its optical inflection and NeoCloud ramp. Meaningful upside or downside will hinge on the pace of 200G-per-lane and 1.6T adoption.
Contact [email protected] for any questions or corrections.
Credo Technology čeká počátek tržeb z AI scale-up konektivity ve fiskálním roce 2027, větší přínos pak ve fiskálním roce 2028. Firma rozšiřuje portfolio o PCIe Gen6 AEC, retimery, Blue Heron a OmniConnect.
Key Takeaways Credo Technology sees scale-up AI connectivity revenues starting in fiscal 2027, with more upside in 2028.PCIe Gen6 AECs, retimers, Blue Heron and OmniConnect broaden Credo Technology's portfolio.Fiscal 2028 could bring DustPhotonics CPO/NPO revenues, ALCs and OmniConnect production ramps. Credo Technology (CRDO - Free Report) is expanding its presence in the AI connectivity space, with scale-up networks emerging as another potential growth opportunity. While fiscal 2027 is expected to mark the beginning of scale-up revenues, management sees fiscal 2028 as a more substantial opportunity.
Credo further added that it expects the scale-up opportunity to evolve across different architectures, with hyperscalers and Neo Clouds pursuing individual strategies to address bandwidth requirements. It is taking a customer-by-customer approach as operators pursue different strategies.
The company's expanding product portfolio could support this opportunity. Credo remains on track for PCIe Gen6 AEC solutions and is witnessing strengthening customer engagement and design activity. Retimer momentum is also improving across 100G and 200G per lane, alongside customer traction for PCIe Gen6 retimers.
Blue Heron supports Ethernet, UALink and ESUN for emerging scale-out and scale-up networks. Management expects initial CPO and NPO revenues from DustPhotonics in fiscal 2028. It also expects production ramps for active LED cables (ALCs) and OmniConnect in fiscal 2028. OmniConnect gearboxes are designed to optimize XPU connectivity. The first OmniConnect product, called Weaver, allows up to a tenfold improvement in memory I/O density.
However, the scale-up opportunity remains at an early stage. Customer architectures and deployment strategies will determine how quickly revenues ramp. For now, fiscal 2027 appears to be a foundation year, while fiscal 2028 could provide a clearer test of whether Credo can turn its expanding scale-up portfolio into a meaningful revenue contributor.
Credo also needs to watch out for serious competition from bigwigs like Broadcom (AVGO - Free Report) and Marvell Technology (MRVL - Free Report) , as well as upcoming players like Astera Labs.
Taking a Look at CompetitorsMarvell is also accelerating investments in the emerging scale-up networking market. On the last earnings call, management noted that it expects a “massive expansion” of scale-up networks as AI domains grow, which will require high-radix, low-latency switches and high-bandwidth optical interconnects.
Marvell expects its scale-up optics business to ramp significantly in fiscal 2028, with revenues forecast to more than double its prior outlook of roughly $150 million. The company added that it is well-placed to support scale-up protocols with its in-house-developed UAL and ESUN switches and support for NVLink through its partnership with NVIDIA. It also has several Tier-1 customer engagements that management believes each represent multibillion-dollar lifetime revenue opportunities.
Broadcom’s Networking business accounted for nearly 40% of its AI revenues in the fiscal second quarter. The company is enabling direct-attached copper using its 200G and 400G SerDes, alongside co-packaged copper with Ethernet and PCIe switches for scale-up networks.
Management expects networking to typically represent closer to 30% of AI revenues as its XPU business expands. Broadcom is building custom silicon platforms and enabling 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.
CRDO Price Performance, Valuation and EstimatesShares of CRDO gained 16% in the past month compared with the Electronics-Semiconductors industry’s growth of 1.1%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, CRDO is trading at 17.09, higher than the Electronic-Semiconductors sector’s multiple of 5.12.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2027 has seen a marginal upward revision over the past 60 days.
Image Source: Zacks Investment Research
CRDO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Credo očekává ve fiskálním roce 2027 růst tržeb o více než 80 % a udrží čistou non-GAAP marži kolem 50 %, i přes asi 50% růst provozních výdajů včetně výdajů na výzkum a vývoj.
Key Takeaways Credo expects fiscal 2027 revenue to grow more than 80%, with acceleration starting in the second half.Optical revenue is expected to top $600 million, with key products each contributing more than $100 million.Credo plans to boost R&D spending while keeping non-GAAP net margins near 50%. Credo Technology Group Holding Ltd (CRDO - Free Report) has entered fiscal 2027 with strong revenue momentum and a continued focus on investing in new product development. In fiscal 2026, revenue reached a record $1.3 billion, up 206% year over year, while gross margin increased 310 basis points to 68.1%. The company also delivered significant operating leverage, with operating margin improving 21.44% as operating expenses rose considerably more slowly than revenue. In the fourth quarter, non-GAAP gross margin was 68.3%, while non-GAAP operating margin totaled 49.6% and non-GAAP net margin reached 51.9%.
For fiscal 2027, Credo expects to maintain its strong margin profile even as it increases investment in research and development. Management expects non-GAAP gross margin to remain broadly consistent with fiscal 2026 levels. At the same time, non-GAAP operating expenses are expected to increase approximately 50% year over year, well below the expected revenue growth rate, as the company continues investing in R&D to support new product development and address growth opportunities. As a result, Credo expects its non-GAAP net margin to remain in the vicinity of 50%.
Credo expects fiscal 2027 revenue to grow more than 80% year over year, with mid-single-digit sequential growth in the first half and an inflection beginning in the second half. This acceleration is expected to be supported by more than $600 million in optical revenue, with ZeroFlap optics, silicon photonics PICs and optical DSPs each expected to contribute more than $100 million. On the last earnings call, management stated that about half of the expected absolute dollar revenue growth in fiscal 2027 should come from the optical portfolio and about half from the existing copper portfolio, predominantly AECs and retimers.
The near-term outlook also points to continued strong profitability. For the first quarter of fiscal 2027, Credo expects revenue between $465 million and $475 million, non-GAAP gross margin of 67% to 69%, and non-GAAP operating expenses of $86 million to $90 million. With revenue growth expected to remain substantially ahead of operating expense growth, the company expects to continue supporting higher R&D investment while maintaining non-GAAP net margins near 50%.
Taking a Look at CRDO’s CompetitorsBroadcom (AVGO - Free Report) continues to benefit from strong AI semiconductor demand and operating leverage, supporting its margin profile. In the second quarter of fiscal 2026, free cash flow reached $10.26 billion, representing 46% of revenues, while cash flow from operations was $10.49 billion. However, the company operates in highly competitive markets where pricing pressure can weigh on margins, while higher integration costs, acquisition complexity and elevated commitments could also create profitability risks. Broadcom’s infrastructure software business continues to provide support, with second-quarter revenue increasing 9% year over year to $7.18 billion and annual recurring revenue rising 17%. Management expects infrastructure software revenue of approximately $8.9 billion in the third quarter, up 31% year over year. Strong AI demand and recurring software revenue support Broadcom’s margin profile, although competition and execution risks remain important constraints.
Marvell Technology’s (MRVL - Free Report) margin profile remains supported by strong AI-driven growth and operating discipline. In the first quarter of fiscal 2027, non-GAAP gross margin was 58.9%, slightly below 59% in the fourth quarter, while non-GAAP operating margin was 35% compared with 35.7% previously. As custom silicon, interconnect and optics businesses scale, strong data center growth could support operating leverage. However, profitability remains sensitive to product mix, competitive pricing and ramp-related costs. Marvell’s restructuring efforts are expected to support cost discipline, while its fabless model helps maintain capital efficiency. Overall, AI-driven growth provides margin support, although mix shifts and pricing pressure could create volatility.
CRDO’s Price Performance, Valuation and EstimatesShares of CRDO have gained 22.6% compared with the Electronics-Semiconductors industry’s growth of 5.4% in the past month.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, CRDO is trading at 18.09, higher than the industry’s multiple of 5.36.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO’s earnings for fiscal 2027 has been revised marginally upward over the past 60 days.
Image Source: Zacks Investment Research
CRDO currently sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Credo vede iniciativu OCP pro otevřený sériový interconnect pro AI infrastrukturu a tvrdí, že modulární návrhy mohou nabídnout až 25× vyšší hustotu paměti a 5% vyšší šířku pásma než HBM4.
Key Takeaways Credo is leading an OCP initiative to develop lightweight serial interconnects for AI infrastructure.Credo says composable designs could deliver up to 25 times greater memory density than HBM4.OmniConnect enables chip-to-chip connectivity and scale-up networking for modular AI architectures. As AI workloads become increasingly demanding, data centers are facing a critical memory-wall challenge – the growing gap between processor performance and the speed at which data can be accessed from memory. Credo Technology Group Holding Ltd. (CRDO - Free Report) is addressing this bottleneck by developing a new open interconnect standard within the Open Compute Project (OCP). It has established the OCP Open Chiplet Economy (OCE) Lightweight Serial Interconnect (LSI) Workstream, aimed at developing efficient interconnect solutions for AI infrastructure. As part of the initiative, Credo plans to contribute its OmniConnect lightweight AXI framer specification to OCP.
HBM has become a key component of modern AI systems, but its high cost, limited availability and density constraints are creating challenges as AI infrastructure scales. Credo believes a lightweight serial interconnect could offer a more flexible way to connect compute and memory resources. By enabling memory disaggregation and chip-to-chip communication, the technology could allow AI system designers to build more modular architectures. According to Credo, these composable designs could deliver up to 25 times greater memory density and 5% higher bandwidth than HBM4 in certain configurations.
The OCP LSI initiative is designed to support an open, interoperable ecosystem where compute, memory and other resources can be combined more efficiently. This could allow data-center operators and AI developers to tailor systems to specific workloads rather than relying on fixed architectures. Credo's OmniConnect technology uses an AXI-over-VSR (Very Short Reach) SerDes bus, supporting both die-to-die connectivity and scale-up networking. The approach can connect multiple compute engines through external chiplets, potentially enabling new modular and near-package architectures for AI inference.
Credo’s OCP initiative not only strengthens its position in chiplet-based AI infrastructure but also expands opportunities for OmniConnect. The move supports the industry shift toward open, modular and scalable AI architectures that address memory and interconnect bottlenecks.
Navigating CRDO’s Competitive BattlefieldAstera Labs (ALAB - Free Report) is benefiting from rising demand for high-speed connectivity as AI infrastructure shifts toward larger rack-scale systems. ALAB’s second-quarter revenues surged 104.4% to $392.4 million, led by broad-based demand across AI fabrics and signal-conditioning products, driving the upside, while PCIe 6 offerings generated more than half of quarterly revenues. Management cited expanding design activity across customers and product categories as AI infrastructure deployments require greater connectivity bandwidth and more complex switching architectures. In July, it expanded its Taurus portfolio with the industry’s first OCP-standard footprint-compatible 3.2T Smart Retimers and Smart Redrivers, designed for 200G-per-lane Ethernet, UALink and ESUN connectivity in AI infrastructure.
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. Marvell’s custom silicon strategy continues to benefit from hyperscaler demand for differentiated XPU and XPU-attach solutions. MRVL now expects custom revenues to grow more than 20% year over year in fiscal 2027 and to more than double in fiscal 2028, driven by multiple program ramp-ups. Recently, MRVL unveiled AI memory innovations spanning server storage, rack-scale CXL memory and pod-level optical shared memory, enabling hyperscalers to scale memory independently from compute and improve AI infrastructure efficiency.
CRDO’s Price Performance, Valuation and EstimatesShares of CRDO have gained 86.3% year to date compared with the Electronics-Semiconductors industry’s growth of 35%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, CRDO is trading at 18.75, higher than the Electronics-Semiconductors industry’s multiple of 5.41.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2027 has been marginally revised upwards over the past 60 days.
Image Source: Zacks Investment Research
CRDO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Key Takeaways CRDO sees AEC demand, silicon photonics and hyperscaler traction driving fiscal 2027 growth.LITE expects higher revenues, 1.6T transceiver ramp and internal CW laser integration to boost results.CRDO and LITE both have analyst price targets implying notable upside from recent closing prices. Optical and photonics products are in tremendous demand for serving global cloud and artificial intelligence (AI)/machine learning (ML) infrastructure. They are the latest bestsellers in the AI infrastructure space.
Large AI models require millions of graphical processing units (GPUs) working in tandem. As a result, the ecosystem witnesses massive growth in data throughput (as high as 400 Gbps and 800 Gbps). The traditional copper wiring is unable to carry these extremely high-speed data packets properly, as it generates excessive heat slowing down the entire AI compute cluster.
The photonics technology solves this problem transmitting data at the speed of light through a fiber optic network. Photonics enables high-speed, low-latency, and energy-efficient data transfer without overheating.
Here, we recommend investors buy these two photonics developers with a favorable Zacks Rank that are flying high year to date. Industry-leading products of these companies and the unstoppable growth of AI-powered data centers make these stocks attractive investment opportunities for the long term.
The stocks are: Credo Technology Group Holding Ltd. (CRDO - Free Report) and Lumentum Holdings Inc. (LITE - Free Report) . Each of our picks carries a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
Credo Technology Group Holding Ltd.Credo Technology is a provider of high-performance serial connectivity solutions for the hyperscale datacenter, 5G carrier, enterprise networking, artificial intelligence and high-performance computing markets.
CRDO’s outlook is supported by widening AEC adoption, rising hyperscaler and Neo cloud traction, and a larger optical portfolio that now includes silicon photonics PIC technology following the DustPhotonics acquisition. AECs remain the primary growth engine as they play an increasingly critical role in AI-driven networking deployments.
ZF Optics is moving from initial ramp to a broader fiscal 2027 revenue contributor. The acquisition of Dust Photonics strengthens CRDO’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. CRDO projects more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million in fiscal 2027.
Strong OutlookFor 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, management 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.
Solid Estimate RevisionsFor fiscal 2027 (ending April 2027), the Zacks Consensus Estimate currently shows revenues of $2.35 billion, suggesting an improvement of 75.8% year over year and earnings per share of $5.98, indicating an increase of 72.8% year over year. The Zacks Consensus Estimate for the current year has improved 7% in the last 60 days.
For fiscal 2028, the Zacks Consensus Estimate currently shows revenues of $3.46 billion, suggesting an improvement of 47.2% year over year and earnings per share of $8.58, indicating an increase of 43.6% year over year. The Zacks Consensus Estimate for the current year has improved 6.1% in the last 60 days.
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Impressive Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 19.8% from the last closing price of $237.92. The brokerage target price is currently in the range of $215-$350. This indicates a maximum upside of 47.1% and a downside of 9.6%.
Lumentum Holdings Inc.Lumentum Holdings designs and manufactures optical and photonic technologies for high-speed telecommunications, data centers, and advanced manufacturing. LITE provides components, such as transceivers and lasers for fiber-optic networks, supporting the rapid growth of AI, cloud computing, 5G connectivity, and beyond.
LITE’s technology leadership in high-speed optical components has positioned it as an essential supplier to hyperscale customers deploying next-generation network architectures. Moreover, LITE has a strong collaboration with NVIDIA Corp. (NVDA) for developing NVDA’s silicon photonics ecosystem, especially for deploying the latter’s Spectrum-X Photonics networking switches.
Strong OutlookFor the fourth quarter of fiscal 2026, Lumentum expects revenues between $960 million and $1.01 billion. The company guided non-GAAP operating margin to 35-36% and non-GAAP earnings to $2.85-$3.05 per share, based on an effective tax rate assumption of 16.5% and approximately 102 million diluted shares.
Management said a meaningful driver of sequential growth is expected to be transceivers, with 1.6T shipments poised to ramp in the fiscal fourth quarter. LITE also expects further progress on integrating internal CW lasers into its module portfolio, with management indicating that roughly 20% of modules in the near-term mix could include its own CW lasers, alongside ongoing yield improvements and efforts to reduce scrap.
Solid Estimate RevisionsFor fiscal 2027 (ending June 2027), the Zacks Consensus Estimate currently shows revenues of $5.64 billion, suggesting an improvement of 88.4% year over year and earnings per share of $18.16, indicating an increase of 121.8% year over year. The Zacks Consensus Estimate for the current year has improved 2% in the last 30 days.
Image Source: Zacks Investment Research
Huge Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 30.8% from the last closing price of $849.47. The brokerage target price is currently in the range of $800-$1,400. This indicates a maximum upside of 64.8% and a downside of 5.8%.
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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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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.
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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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