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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 is upgraded to strong buy after a misunderstood post-earnings selloff, with Wall Street misreading GAAP margin compression and working capital expansion. CRDO's vertical integration via DustPhotonics acquisition positions it to solve the AI memory bottleneck, targeting a multi-billion dollar TAM with LPDDR-based solutions. The company's PILOT telemetry and zeroflap optics offer hyperscalers hard-dollar ROI, supporting long-term non-GAAP margin expansion and competitive differentiation.
Hsbc Holdings PLC grew its position in Credo Technology Group Holding Ltd. (NASDAQ:CRDO – Free Report) by 50.2% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 100,602 shares of the company’s stock after purchasing an additional 33,621 shares during the quarter. Hsbc Holdings PLC owned approximately 0.05% of Credo Technology Group worth $27,321,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also recently modified their holdings of the company. Reflection Asset Management purchased a new position in Credo Technology Group in the fourth quarter valued at approximately $25,000. Acumen Wealth Advisors LLC purchased a new stake in shares of Credo Technology Group during the 4th quarter worth approximately $25,000. Orion Capital Management LLC acquired a new position in shares of Credo Technology Group in the 2nd quarter valued at $27,000. AlphaCentric Advisors LLC purchased a new position in shares of Credo Technology Group in the 1st quarter valued at $33,000. Finally, Van ECK Associates Corp acquired a new stake in Credo Technology Group during the 4th quarter worth $37,000. Institutional investors and hedge funds own 80.46% of the company’s stock.
Analyst Ratings Changes A number of equities research analysts recently weighed in on the stock. The Goldman Sachs Group reissued a “buy” rating and issued a $250.00 price target on shares of Credo Technology Group in a research report on Tuesday, June 2nd. Weiss Ratings cut Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday. Evercore set a $292.00 price target on Credo Technology Group in a research note on Wednesday, September 2nd. Bank of America cut their target price on shares of Credo Technology Group from $340.00 to $275.00 and set a “buy” rating on the stock in a report on Wednesday, September 2nd. Finally, Stifel Nicolaus upped their target price on shares of Credo Technology Group from $250.00 to $350.00 and gave the company a “buy” rating in a report on Monday, June 22nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $267.39.
View Our Latest Stock Report on Credo Technology Group Credo Technology Group Trading Down 1.7% Shares of CRDO opened at $167.75 on Wednesday. The stock’s 50 day moving average is $226.71 and its two-hundred day moving average is $190.08. Credo Technology Group Holding Ltd. has a twelve month low of $86.49 and a twelve month high of $308.67. The firm has a market capitalization of $31.53 billion, a PE ratio of 59.70, a P/E/G ratio of 0.68 and a beta of 3.22.
Credo Technology Group (NASDAQ:CRDO – Get Free Report) last posted its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, beating the consensus estimate of $1.17 by $0.03. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%.The business had revenue of $479.00 million during the quarter, compared to analysts’ expectations of $473.30 million. During the same period last year, the firm earned $0.52 EPS. The company’s quarterly revenue was up 114.7% compared to the same quarter last year. On average, sell-side analysts predict that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.
Insider Buying and Selling at Credo Technology Group In other Credo Technology Group news, COO Yat Lam sold 55,441 shares of the business’s stock in a transaction on Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the sale, the chief operating officer directly owned 2,529,169 shares in the company, valued at approximately $538,763,580.38. The trade was a 2.15% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,473 shares of the stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $209.53, for a total transaction of $5,756,417.69. Following the completion of the transaction, the chief technology officer owned 5,772,397 shares of the company’s stock, valued at $1,209,490,343.41. This represents a 0.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 376,784 shares of company stock valued at $88,299,791. 9.06% of the stock is owned by company insiders.
(Free Report)
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.
See Also Five stocks we like better than Credo Technology Group Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement Q3 Earnings Could Be the Catalyst the Market Has Been Waiting For Want to see what other hedge funds are holding CRDO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Credo Technology Group Holding Ltd. (NASDAQ:CRDO – Free Report).
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Stock to Watch: Credo Technology Group Holding Ltd. (CRDO - Free Report) Credo Technology Group Holding Ltd offers high-speed connectivity solutions. At the core of Credo’s business is its Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technology stack. Leveraging this foundation, Credo offers a diversified suite of solutions, including integrated circuits (ICs), retimers, optical DSPs, Active Electrical Cables (AECs), SerDes chiplets and SerDes IP licensing.
CRDO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CRDO has a Growth Style Score of B, forecasting year-over-year earnings growth of 80.1% for the current fiscal year.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.25 to $6.23 per share. CRDO boasts an average earnings surprise of +15.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CRDO should be on investors' short list.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in CRDO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Credo delivered 115% revenue growth while maintaining a 48.2% non-GAAP operating margin despite significantly higher R&D spending. Management expects fiscal 2027 growth above 85%, optical revenue exceeding $600 million, and net margins approaching 50%. PILOT and ZeroFlap could differentiate Credo through predictive link monitoring as customers report 10% to 20% GPU utilization losses.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Each week, Benzinga’s Stock Whisper Index uses a combination of proprietary data and pattern recognition to showcase five stocks that are just under the surface and deserve attention.
Investors are constantly on the hunt for undervalued, under-followed and emerging stocks. With countless methods available to retail traders, the challenge often lies in sifting through the abundance of information to uncover new opportunities and understand why certain stocks should be of interest.
Here’s a look at the Benzinga Stock Whisper Index for the week ending Sept. 4:
Credo Technology Group Holding (NASDAQ:CRDO): One of the stocks showing an increase in interest from readers during the week was Credo Technology, a company that recently reported first-quarter financial results. The company reported-first quarter revenue and earnings per share that both topped analyst estimates, but shares fell on lower margins and increased costs. With shares down 27% over the last five trading days and the stock at a low last seen in May, this could be a buying opportunity on the dip. Credo is seeing increased demand related to data centers and several of its key products. The company’s CFO predicted revenue growth of 85% for fiscal 2027 and growth to continue into fiscal 2028 and beyond.
Xcel Energy (NASDAQ:XEL): The electric utility company saw increased interest with minimal new news. Xcel reported second-quarter financial results in July with revenue missing analyst estimates and earnings per share beating estimates. The stock fell on the results and narrowed full-year earnings per share guidance. Shares are nearly flat for the week and the year. With growing interest from investors in the stock, this could be a name to watch.
Okta Inc (NASDAQ:OKTA): The cloud-native security stock is trading at its highest level since March 2022, a likely result of recent strong financial results. The company beat analyst estimates for both earnings per share and revenue in the second quarter. The company also saw strong subscription revenue and remaining performance obligations in the quarter. Okta also raised its full-year revenue and earnings per share guidance after the quarterly results. Multiple analysts raised their price targets on the stock after the result. Okta is seeing increased attention and revenue opportunities related to AI agents.
Cenovus Energy (NYSE:CVE): The Canadian energy company saw strong interest from readers, which comes with shares up 85% year-to-date. In July, Cenovus posted a double beat with quarterly revenue of $12.59 billion easily beating a Street estimate of $9.43 billion. This marked the first revenue beat vs. analyst estimates in three quarters, while also marking the sixth straight quarter of beating analyst estimates for earnings per share. The stock could be one to watch after the recent quarterly financial strength.
Valero Energy (NYSE:VLO): The oil refinery was one of multiple related oil companies that saw strong interest and almost made this week’s Stock Whisper Index. Valero stock is up 3% over the last five trading days, with the stock up 124% year-to-date and hitting new all-time highs. In July, Valero posted a double beat on revenue and earnings per share and saw several analysts raise their price targets. The latest surge in demand and the price is President Donald Trump meeting with oil executives last week and the continued rise in the price of oil. Valero will likely remain a hot stock with oil prices remaining high.
Stay tuned for next week’s report, and follow Benzinga Pro for all the latest headlines and top market-moving stories here.
Read the latest Stock Whisper Index reports here:
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRDO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CRDO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Credo Technologies NASDAQ: CRDO was a value before its earnings release and a deep value afterward, given its position in the AI ecosystem. Its growing portfolio spans needs from millimeters to kilometers, encompassing copper and optical solutions, at a time when connectivity is king.
Credo Technology Group Today
CRDO
Credo Technology Group
$169.79 +5.62 (+3.42%)
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$86.49▼
$308.6760.53
$267.39
The release-inspired sell-off, however warranted, fails to account for this positioning, and its depth is overblown. At 20%, the selling smacks of algorithmic activity that will quickly fade as fundamentals take over.
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The fundamental story is that this company is growing at a hyper pace, sustaining triple-digit growth, outperforming estimates, and raising guidance, underpinned by datacenter demand. Within that, the company is profitable, which is central to the selling trigger. Credo’s reported results for Q1 of its fiscal year 2027 (FY2027) were better than expected on all accounts, except when it came to costs. The company’s costs increased at the gross and operating levels, leading the market into an anxiety-laden spiral that all other metrics say is misplaced.
Credo Plunges on Beat and Raise ResultsCredo Technologies' Q1 FY2027 results and guidance were strong despite the mixed signal of contracting margins. The company’s $479 million in net revenue was up nearly 115% year over year and 150 basis points above consensus, despite the high bar analysts set. Vertically integrated demand drove strength, including products such as ZeroFlap Active Electric Cables and Optical Transceivers.
The ZeroFlap architecture includes hardware and software critical to AI functionality. Flaps, or rapid dropping and picking up of signals, can cause an AI model to crash, ruining a training or inference session. ZeroFlap architecture enables workarounds and the continuous signal integrity AI supercomputers need.
Margins were a sore spot in the report, with gross and operating margins contracting on both GAAP and adjusted bases. However, the impact is negligible given the results, which included triple-digit increases in operating income and net income, as well as bottom-line outperformance.
The adjusted earnings per share of $1.20 was 3 cents above forecasts and led to improved guidance, with management expecting continued strength at all levels. Q2 revenue is expected to top $525 million, 175 bps better than expected and a 95% increase compared to the prior year.
Analysts Stay Bullish Despite Credo’s Margin ConcernsAnalysts' responses following the release were mixed, with some lifting and others trimming price targets while the remainder reaffirmed or stood on the sidelines. Takeaways from the chatter center on margin compression as a near-term headwind, as well as the potential for acceleration in the coming quarters.
While Q2 guidance assumes slowing, the company has clear momentum, the datacenter buildout is still underway, and next-gen product launches and ramps are expected over the next two to six quarters. As one analyst pointed out, Credo Technologies is well-positioned, with strong ties to five hyperscalers and a growing number of neoclouds.
As it stands, MarketBeat tracks 19 analysts, with a high level of conviction backing the consensus rating of Moderate Buy. The bias is bullish, with nearly 85% of ratings Buy or better, and no Sell ratings logged. While price target revisions following the release were mixed, they ranged around the pre-release consensus, which forecasted about 60% upside from the early September lows. Analyst activity may fuel further market volatility, but the market seems to have overreacted to the release, falling well below the lowest target on record.
Credo Approaches a Technical Turning PointTechnically, Credo’s market is like a rubber band pulled back to nearly its snapping point. Further downside could break whatever support remains, but the right catalyst could trigger a robust, rapid rebound. The technical signal in play includes a significant MACD convergence—this signal strongly suggests the market will at least retest the existing high, if not move up to set fresh highs. Based on Credo’s outlook, the likely outcome is a rebound to set fresh highs; the only question is the timing.
The next visible catalyst is the subsequent earnings report. The company guided for steady to slightly higher gross margin, and coming in at the high end of the range would alleviate market fear. The risk, or rather, the opportunity, is that CRDO’s market enters a wait-and-see mode, opening the door for short-sellers to drive it even lower, although short interest isn’t significant in early September. Reasons to believe the company will report strength include Advanced Micro Devices' NASDAQ: AMD Helios launch, which kicks off this quarter.
Downside risk is limited, with institutions owning approximately 80% of the stock, but there is still room for it to fall. The best target for solid support is near $150, aligning with prior action including a congestion band, breakout, and previous support. If CRDO falls below it, price action could fall to $85, but that is unexpected.
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Should You Invest $1,000 in Credo Technology Group Right Now?Before you consider Credo Technology Group, you'll want to hear this.
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Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries. "Physical AI" is coming. Learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Credo grew Q1 revenue 115% to $479 million while sustaining 68% gross margin and 49.3% non GAAP net margin. Management expects FY2027 revenue growth above 85%, with optical revenue exceeding $600 million as a second growth engine emerges. DustPhotonics expands Credo across silicon photonics, 800G, 1.6T and NPO, creating multiple opportunities to increase content per connection.
Shares of AI networking up-and-comer Credo Technology (CRDO -0.64%) sank this week, falling 29.5% through Thursday trading, according to data from S&P Global Market Intelligence.
Credo delivered its first fiscal quarter 2027 earnings results this week, and while the headline numbers technically beat analyst expectations, the stock plunged due to some less-than-perfect margin figures. Even after this week's plunge, Credo trades at a high valuation, so anything less than a big beat and raise beyond bullish expectations was probably bound to be met with a pullback.
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Credo's financial results take off, even as the stock reverses In its fiscal first quarter, Credo grew revenue 114.7% to $479.0 million, while adjusted (non-GAAP) earnings per share rocketed 130% higher to $1.20. Both figures actually beat expectations. Management also guided for strong quarter-over-quarter revenue growth in the current period, which also came in well above expectations.
So, what was the problem? Well, Credo trades at a very high valuation. Heading into this week, its market cap was around $45 billion, relative to its current revenue run rate of about $2 billion. Even though Credo is growing at a triple-digit rate and revenue will be higher in the year ahead, the early week valuation was still about 18 times the upcoming year's revenue estimate of $2.49 billion.
Credo does generate relatively high margins on its specialized networking equipment, but the past quarter's gross margins also saw some pressure. GAAP gross margins fell to 64.5%, down from 68% last quarter and 67.4% in the year-ago quarter. While adjusted gross margins were within the range of the prior quarters, there was apparently a big uptick in stock-based compensation that investors didn't like. The current quarter's guidance also forecasts an even lower GAAP gross margin, so the trend is going the wrong way.
Image source: Getty Images.
Credo is an AI winner, but not a cheap stock After its 30% drawdown this week, Credo trades at around 26 times this year's adjusted earnings estimates. That's a very reasonable valuation, given Credo's strong AI-oriented growth outlook.
However, investors should be cognizant that the adjusted earnings estimates exclude stock-based compensation, which is a real cost because it dilutes shareholders. Last quarter, GAAP net income was just a little more than half of non-GAAP income. So, investors should probably regard Credo's true forward earnings multiple as something closer to 50 than 26. In that light, Credo may be seen as more fully valued. That being said, if Credo can maintain triple-digit growth figures beyond next year or something close to it, this past week's pullback could be seen as an opportunity to buy.
Credo just dropped 20% on an earnings beat, and that contradiction is exactly where the argument starts. Whether today's flush is a gift or a warning depends on a few risks most investors are overlooking.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRDO, ALAB, MRVL, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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 Group (NASDAQ: CRDO - Get Free Report) and Paragon ID (OTCMKTS:PAGDF - Get Free Report) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation. Earnings and Valuation This table compares Credo
Analyst’s Disclosure: I/we have a beneficial short position in the shares of SMGB/SMH; QQQM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Credo Technology (CRDO -20.04%) is having a difficult Wednesday. The company reported Q1 2027 results on Tuesday evening, smashing Wall Street's estimates and offering rosy guidance for the next quarter. But the stock was priced for perfection, and Credo gave the bears enough to feast on. The stock closed Wednesday's trading 20% lower.
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A beat-and-raise report with a catch Let's start with the headline figures. Revenue more than doubled, with a 115% year-over-year jump to $479 million. Adjusted earnings landed at $1.20 per diluted share, up 131% from $0.52 per share in the year-ago period. Credo's active electric cables (AECs) are shipping to five hyperscalers, and the newer optical business is catching up fast. Q2 guidance pointed to roughly $530 million of top-line revenue, up from $268 million in last year's second quarter and well above the current analyst consensus at $517 million.
So it's a classic beat-and-raise report, but there's one uncomfortable wrinkle. Credo's business is incredibly concentrated on a handful of customers. The three largest clients accounted for 74% of total revenues.
That might have been alright for a calmer stock, but Credo is a volatile ticker and it headed into this report at sky-high valuation ratios. After today's sharp drop, the beta value is a massive 3.2, and the stock still trades at 59 times trailing earnings.
Image source: The Motley Fool.
Why the sell-off makes sense (and why you might like Credo's stock anyway) The price cut makes sense. Nobody likes intense customer concentration, and Credo's stock is still quite expensive. Credo's sales growth could hit a rock wall if one or more of those mega-buyers slow their orders.
However, the company is growing at nitro-boosted rates in the current economy. Credo remains an effective alternative investment in the data center construction boom. Adding optical components to the copper-based AEC foundation lowers the risk of one technology falling out of favor.
Anders Bylund 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 Technology Group Holding is dropping after earnings, down 19%. CRDO turned in solid results, but the market is in panic mode. For those looking for a buying opportunity in CRDO stock, this is it.
GAAP gross margin fell to 64.5% from 67.4% a year earlier Summary
Credo reported non-GAAP EPS of $1.20 on $479.0 million of revenue, and guided second quarter revenue to $525 million to $535 million.
Credo Technology Group CRDO fell 11.09% premarket after first quarter revenue rose 114.7% to $479.0 million, ahead of the $473.30 million consensus. Non-GAAP diluted EPS came in at $1.20 against $1.17 expected. GAAP diluted EPS was $0.67.
GAAP gross margin fell to 64.5% from 67.4% a year earlier, while non-GAAP gross margin rose to 68.0% from 67.6%. GAAP operating expenses more than doubled to $188.4 million from $89.6 million, outpacing revenue growth. GAAP operating income rose to $120.7 million from $60.7 million, but GAAP operating margin slipped to 25.2% from 27.2%. Share-based compensation rose to $88.0 million from $35.5 million. Cash and short-term investments ended the quarter at $764.3 million.
Credo guided second quarter revenue to $525 million to $535 million, with GAAP gross margin of 62.9% to 64.9% and GAAP operating expenses of $199 million to $204 million. Chief executive Bill Brennan said the portfolio now spans connectivity "from millimeters to kilometers, with solutions across optics and copper."
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
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.
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 shares fell despite revenue more than doubling and quarterly earnings topping expectations
Credo Technology Group CRDO shares fell about 7% Wednesday even after the semiconductor connectivity provider posted triple-digit revenue growth and earnings above expectations.
Revenue for the fiscal first quarter jumped 114.7% year over year to $479 million, while non-GAAP earnings per share reached $1.20. GAAP net income was $129.4 million, compared with an operating profit of $120.7 million.
Investors instead appeared focused on profitability trends. GAAP gross margin declined to 64.5% from 67.4% a year earlier, while operating expenses rose to $188.4 million from $89.6 million. Operating margin fell to 25.2% from 27.2%.
For the fiscal second quarter, Credo projects revenue of $525 million to $535 million. The company expects GAAP gross margin of 62.9% to 64.9% and operating expenses of $199 million to $204 million.
What it means for the stock: Faster sales growth may be competing with concerns about rising expenses and thinner margins.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) on Tuesday posted better-than-expected financial results for the first quarter of fiscal 2027.
Credo Technology reported first-quarter revenue of approximately $479 million, beating analyst estimates of $471.77 million. The company reported adjusted earnings of $1.20 per share for the quarter, beating estimates of $1.17 per share, according to Benzinga Pro.
"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," said Bill Brennan, president and CEO of Credo Technology.
Credo Technology expects second-quarter revenue to be in the range of $525 million to $535 million, versus estimates of $515.79 million. The company anticipates adjusted gross margin between 67% and 69% in the second quarter.
Credo Technology shares fell 10.3% to $185.32 in pre-market trading.
These analysts made changes to their price targets on Credo Technology following earnings announcement.
B of A Securities analyst Vivek Arya maintained the stock with a Buy and lowered the price target from $340 to $275. Rosenblatt analyst Mike Genovese maintained the stock with a Neutral and raised the price target from $215 to $235. Trending
Considering buying CRDO stock? Here’s what analysts think:
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Key Takeaways Credo posted $479 million in fiscal Q1 2027 revenue, up 114.7% year over year.CRDO sees optical revenue topping $600 million in FY27, with three products each exceeding $100 million.Silicon photonics PICs and 1.6T/3.2T solutions are expanding as AI networks demand greater connectivity. Credo Technology Group Holding Ltd. (CRDO - Free Report) recently generated $479 million in first-quarter fiscal 2027 revenue, up 9.6% sequentially and a massive 114.7% year over year. Management highlighted that its portfolio now spans connectivity from millimeters to kilometers, covering both optical and copper solutions. The potential opportunity is substantial because AI infrastructure is moving toward increasingly dense computing environments. Every additional generation of AI accelerators can require more bandwidth between systems, creating additional connectivity requirements.
If the number of servers or accelerators grows at a moderate pace, the connectivity content per system can rise significantly. Credo’s optical business is gaining momentum across optical DSPs, silicon photonics PICs and ZeroFlap optical transceivers. Optical DSP revenue hit a record in the fiscal first quarter, with strong demand for 50G and 100G-per-lane solutions. The optical business is expanding, with its system-level approach becoming increasingly important as AI networks shift to 1.6T and 3.2T solutions and scale-up architectures drive greater adoption of Near-Package Optics (NPO).
Following the DustPhotonics acquisition, Credo also recognized its first silicon photonics PIC revenue, with 800G and 1.6T products expected to ramp throughout the year. The integrated DSP-PIC platform could improve reliability, power efficiency and diagnostics while positioning Credo for the shift toward near-package optics. It now expects an inflection in the second half of fiscal 2027, with optical revenue topping $600 million and ZeroFlap Optics, silicon photonics PICs and optical DSPs each contributing more than $100 million, driving over 85% full-year revenue growth. Management expects second-quarter revenue of $525-$535 million, implying the company continues to grow at an exceptional rate.
CRDO’s Optical Edge Under Competitive PressureMarvell Technology (MRVL - Free Report) optical DSP, switching and broadband businesses remain strong, with 800G demand solid and 1.6T ramping rapidly, expected to accelerate in fiscal 2028. Customers are initially using copper for scale-up networks, but as AI clusters expand, copper’s limited reach and bandwidth are pushing them toward optical interconnects and dedicated UALink, ESUN and NVLink switches. It is therefore investing heavily in next-generation optical interconnect and switching technologies. Marvell continues to see strong demand across optical DSPs, broadband analog, DCI modules and switching, with each tracking toward a $1 billion annualized revenue run rate. The scale-up opportunity remains large, with NPO, CPO and purpose-built switches supporting future growth.
Astera Labs (ALAB - Free Report) is benefiting from rising demand for high-speed connectivity as AI infrastructure shifts toward larger rack-scale systems. Taurus, CXL, UALink, optical and custom connectivity programs broaden the longer-term content opportunity. Management plans to deliver UALink-enabled Scorpio X-Series switches in 2027, alongside signal conditioning solutions for copper and optical links. Its optical roadmap targets high-density fiber attach and near-packaged optics production in 2027, followed by co-packaged optical engines in 2028 and beyond. Third-quarter revenue is expected to be $540-$560 million, implying roughly 40% sequential growth, driven by Scorpio X-Series, Aries PCIe 6 and Taurus 800G shipments.
CRDO’s Price Performance, Valuation and EstimatesCRDO’s shares have gained 43.6% year to date compared with the Electronics-Semiconductors industry’s growth of 26.1%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, CRDO is trading at 14.24, higher than the Electronics-Semiconductors industry’s multiple of 4.96.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2027 has been marginally revised upward 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.
Credo Technology Group Holding Ltd (CRDO) Q1 2027 Earnings Call September 1, 2026 5:00 PM EDT
Company Participants
Daniel O'Neil - VP of Investor Relations & Treasurer
William Brennan - President, CEO & Chairman
Daniel Fleming - Chief Financial Officer
Conference Call Participants
Tore Svanberg - Stifel, Nicolaus & Company, Incorporated, Research Division
Quinn Bolton - Needham & Company, LLC, Research Division
Thomas O'Malley - Barclays Bank PLC, Research Division
Sean O'Loughlin - TD Cowen, Research Division
Blayne Curtis - Jefferies LLC, Research Division
Vivek Arya - BofA Securities, Research Division
Sebastien Cyrus Naji - William Blair & Company L.L.C., Research Division
Karl Ackerman - BNP Paribas, Research Division
Vijay Rakesh - Mizuho Securities USA LLC, Research Division
Mark Lipacis - Evercore ISI Institutional Equities, Research Division
Sujeeva De Silva - ROTH Capital Partners, LLC, Research Division
Christopher Rolland - Susquehanna Financial Group, LLLP, Research Division
Presentation
Operator
Ladies and gentlemen, thank you for standing by. [Operator Instructions]
I would now like to turn the conference over to Dan O'Neil, Treasurer and VP of Investor Relations. Please go ahead, sir.
Daniel O'Neil
VP of Investor Relations & Treasurer
Good afternoon. Thank you all for joining our First Quarter Fiscal 2027 Earnings Call. Today, I am joined by Bill Brennan, Credo's Chief Executive Officer; and Dan Fleming, Credo's Chief Financial Officer.
During this call, we will make certain forward-looking statements. These forward-looking statements are subject to risks and uncertainties discussed in detail in our documents filed with the SEC. These documents can be found in the Investor Relations portion of the company's website. It is not possible for the company's management to predict all risks, nor can the company assess the impact of all factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement.
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.
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.
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That wraps up our initial coverage of Credo’s results. Thank you for stopping by!
Credo Technology just reported earnings, with shares initially down 8% following the report. Here are the key numbers:
Revenue: $479.003 million vs. $471.71 million expected Adjusted EPS: $1.20 vs. $1.17 expected Quick Read:
Credo beat on both lines: Revenue came in about 2% above expectations, while adjusted EPS topped consensus by roughly 3%. Huge growth wasn’t enough: Revenue surged 115% year over year, and EPS jumped 131%, but the 8% initial drop suggests investors were looking for a much larger upside surprise from the high-expectation AI connectivity name.
Beyond tonight’s headline numbers, Credo has posted , with EPS surprises averaging roughly and revenue surprises averaging near across the past four quarters.
The largest recent beat landed in , and the most recent quarter delivered upside. Guidance has skewed conservative: management guided Q3 FY26 revenue to ; the prior quarter’s $230-240M range came in at .
CEO Bill Brennan stayed on message around hyperscaler partnerships and optical TAM, noting fiscal 2026 revenue
With a Q1 guide on the table, the pattern hints at room above the high end, though the setup leaves little cushion if the streak breaks.
Wall Street already expects Q2 revenue of and EPS of , with in the past 30 days.
Management typically guides conservatively, then beats. Revenue beats have narrowed from to as scale grows. The prior framework calls for and a .
Bullish setup: Q2 guide above , gross margin held near , and a raised FY27 framework with ZeroFlap ramp timing. Bearish setup: in-line guide, gross margin compression toward , cautious hyperscaler commentary, or inventory concerns following the ending balance.
Credo Technology reports Q1 FY27 earnings after the bell, with consensus calling for $470.38 million in revenue and $1.1651 in EPS.
Management expects its optical portfolio to generate more than $600 million in fiscal 2027 revenue, with the business weighted toward the second half as hyperscalers continue building increasingly connectivity-intensive AI infrastructure.
But two risks could determine how investors react tonight: gross margins and customer concentration. New optical products could pressure the company’s mix even as its AEC franchise continues to scale, while heavy hyperscaler exposure leaves results sensitive to spending from a relatively small group of customers.
Credo trades around 40 times forward earnings and carries a 3.2 beta, leaving little room for disappointment. A strong beat, paired with a reaffirmed second-half optical ramp, could keep the AI connectivity thesis intact.
This article is updated throughout the trading day. Check back for more.
Full CoverageThe story so far
Credo (NASDAQ:CRDO | CRDO Price Prediction) is expected to report Q1 FY2027 results today after the market closes at 4:05 PM ET. Shares slid 5.51% intraday to $213.61 ahead of the report, tightening the risk band around a stock up 57.2% year to date.
Momentum Meets Execution Risk For Q4, revenue landed at $437 million, up 157.02% year over year, with non-GAAP EPS of $1.16 beating consensus by 12.17%. Non-GAAP gross margin came in at 68.3%, well above the 64.0% to 66.0% guide.
For the full year, revenue more than tripled to $1.3 billion, and non-GAAP net income rose more than five times to $662 million. Cash and equivalents closed at $1.4 billion after $177.5 million of free cash flow in Q4 alone. Management guided Q1 revenue to $465.0 million to $475.0 million with non-GAAP gross margin of 67.0% to 69.0%.
Consensus Estimates Metric Q1 FY27 Estimate YoY Change FY 2027 Estimate FY 2028 Estimate Revenue $470.38M +110.9% $2.46B $3.69B EPS (Non-GAAP) $1.1651 +124.1% $6.1512 $9.1203 Consensus sits near the midpoint of company guidance, leaving little cushion for a headline miss. The FY27 EPS number has been revised up from $5.5158 ninety days ago, with four upward revisions in the last 30 days and zero cuts. The Street is bracing for triple-digit growth without meaningful margin give-back.
What I’m Watching Tonight: Optical Ramp and Margin Mix Take Center Stage Tonight, I’ll be watching the optical trajectory first. Management framed fiscal 2027 as mid-single-digit sequential growth in the first half with an inflection beginning in the second half, powered by ZeroFlap Optics, silicon photonics PICs, and existing DSPs. Each is targeted to clear more than $100 million in revenue this fiscal year.
Analysts will also focus on gross margin mix. The Q1 guide of 67.0% to 69.0% is right in the middle of the 68.3% Q4 result, so any dip toward the low end will get read as new-product dilution.
Customer concentration is the third watchpoint. In Q4, the top four customers represented 34%, 27%, 16%, and 10% of revenue. I’ll be listening for how CEO Bill Brennan quantifies the neocloud ramp, which he sized at around 20% collectively over time.
Fourth, watch operating expense cadence. Non-GAAP OpEx guidance of $86.0-$90.0 million ties to a full-year OpEx increase of approximately 50% year-over-year, and Brennan targets non-GAAP net margin in the vicinity of 50%.
Earnings History Quarter EPS Surprise Revenue Surprise YoY Revenue Q4 FY26 +12.17% +0.86% +157.02% Q3 FY26 +13.75% +5.00% +201.49% Q2 FY26 +35.27% +14.06% +272.08% Q1 FY26 +44.20% +17.02% +273.57% Credo has beaten EPS in four straight quarters.
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Thomas Richmond
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
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He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
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SAN JOSE, Calif.--(BUSINESS WIRE)--Credo Technology Group Holding Ltd (Credo) (Nasdaq: CRDO), an innovator in providing connectivity at scale through fast, reliable, and energy-efficient system solutions, today announced financial results for the first quarter of fiscal year 2027, ended August 1, 2026. First Quarter of Fiscal Year 2027 Financial Highlights Revenue of $479.0 million, grew by 9.6% quarter over quarter and 114.7% year over year GAAP gross margin of 64.5% and non-GAAP gross margin.
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 Group Holding Ltd. (CRDO - Free Report) closed the last trading session at $226.19, gaining 3.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $289.91 indicates a 28.2% upside potential.
The average comprises 18 short-term price targets ranging from a low of $215.00 to a high of $350.00, with a standard deviation of $35.68. While the lowest estimate indicates a decline of 5% from the current price level, the most optimistic estimate points to a 54.7% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in CRDO. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in CRDOThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 1% over the past month, as one estimate has gone higher compared to no negative revision.
Moreover, CRDO currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much CRDO could gain, the direction of price movement it implies does appear to be a good guide.
SAN JOSE, Calif.--(BUSINESS WIRE)-- #WeConnect--Credo joins Open CPX MSA organization to support development of interoperable near-package and co-packaged optical interconnects for AI infrastructure.
Credo Technology Group stock has slumped and moved into a bear market after falling by over 24% from its highest point this year. CRDO dropped to $232, and this price action will be put to the test as the company publishes its financial results on Tuesday.
CRDO stock has erased some of the gains it made earlier this year, mirroring the performance of other companies in the AI industry. This retreat has affected even the best-known names like Micron and Nvidia, which have published strong financial results.
The retreat has also coincided with the ongoing insider selling. Barchart data shows that insiders have sold 589,284 shares in the last three months, bringing the 12-month selling to 2.88 million. Some of the top sellers are Yat Tung, the COO, and Chi Fung, the CTO. Insider selling is usually a risky thing for a stock since these officials have more data than the average investor.
The options market suggest that the stock will see heightened volatility after its earnings report. Data shows that the implied volatility has soared to 122%, higher than the historical volatility of 96%. Its put/call ratio remains below 1, a sign that there are more calls than puts, which is bullish. Most of the call options are at $240 and $250, while the puts are at $235.
Analysts are optimistic about the company’s growth, with the average estimate of its revenue being $471 million, up by 111% from a year earlier. This growth is happening because of the rising demand for its active electrical cables, optical DSPs, optical transceivers, and PCIe Retimers. Most of its competitors, like Lumentum, have all published strong numbers.
Credo Technology’s profits are also expected to keep soaring, with the earnings-per-share (EPS) moving from 52 cents per share to $1.17. For the year, the annual revenue and EPS are expected to grow to $2.27 billion (84% YoY gain) and $6.27, respectively. Odds are that Credo’s earnings will be higher than expected.
Analysts are largely bullish on the CRDO stock. For example, TD Cowen’s Sean O’Loughlin hiked his target from $260 to $300, while Susquehanna, Barclays, Bank of America, and Evercore moved their targets to $250, $300, $340, and $325, respectively.
The daily chart shows that the Credo Technology Group stock peaked at $308 on June 22nd and then pulled back to $175 as the AI rally loses steam. It then attempted to rebound, eventually peaking at $285.
Credo is hovering near the lower side of the Andrews pitchfork tool. Also, it remains above the 100-day Exponential Moving Average (EMA). It has also moved above the strong, pivot, reverse level of the Murrey Math lines tool.
Therefore, the stock will likely bounce back, possibly to $250 after its earnings report. On the flip side, a drop to the key support of $176 is possible.
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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Thornburg Investment Management built its high-conviction approach in Santa Fe, N.M., where Garrett Thornburg founded the firm in 1982. The location still shapes how the firm selects stocks today, according to Thornburg.
Key Takeaways TFGZ holds 43 stocks, a 74.1% active share against its benchmark. Alphabet, Microsoft and Broadcom make up nearly a quarter of the fund’s assets. Tech accounts for 36.7% of the portfolio, well under the benchmark’s 53.5% weight. Modern investors face a nonstop stream of headlines and algorithm-driven price swings that can pull attention from company fundamentals. Thornburg says its distance from Wall Street keeps research focused on fundamentals, not short-term price moves.
See more: Is It Too Late to Add International Stocks?
That approach is evident in the Thornburg Focus Growth ETF (TFGZ). As of July 31, the fund holds 43 stocks with a 74.1% active share relative to the Russell 1000 Growth Index, according to Thornburg data. For advisors weighing active versus passive exposure, the gap indicates how far the fund’s holdings diverge from its benchmark.
That divergence from the benchmark has roots in the firm’s home base. Santa Fe has drawn artists, craftspeople, and independent thinkers since long before Thornburg arrived in 1982. Institutions like the Santa Fe Institute, which studies complex systems, reflect the city’s tradition of original thinking. Thornburg’s investment teams debate ideas within that setting, the firm said, rather than reacting to daily price swings.
Why High Conviction Requires Distance Concentration isn’t the goal, Thornburg said. It’s the result of selectivity, with portfolio teams building positions only after a stock clears a bar for business quality, valuation, and capital allocation.
Portfolio managers Nicholas Anderson and Julian Serafini run TFGZ using a three-basket construction. The approach aims to balance growth exposure while managing volatility, the fund’s fact sheet shows.
The ETF held $226.9 million in assets as of July 31 and carried a 0.79% net expense ratio, Thornburg said.
Alphabet Inc. (GOOGL) was the fund’s largest position at 11.3% of assets as of August 25, according to Thornburg. Microsoft Corp. (MSFT) followed at 7.8%, with Broadcom Inc. (AVGO) at 5.7%.
Credo Technology Group Holding (CRDO) was the fund’s fourth-largest holding at 4.5% of assets as of August 25, Thornburg data shows. The tech company, which makes high-speed connectivity chips for data centers, sat alongside Alphabet and Microsoft among the portfolio’s top five holdings.
Information technology (IT) made up 36.7% of the portfolio as of July 31, below the Russell 1000 Growth Index’s 53.5% weighting, Thornburg reports. Financials and industrials, meanwhile, carried heavier allocations than the benchmark.
For more news, information, and strategy, visit our Portfolio Strategies Content Hub.
Credo Technology Group Holding Ltd (Credo) (NASDAQ: CRDO), an innovator in providing connectivity at scale through fast, reliable, and energy-efficient system solutions, today announced that Bill Brennan, President and CEO, and Dan Fleming, CFO, are scheduled to present at the following upcoming investor conference.
Conference: 2026 Goldman Sachs Communacopia + Technology Conference
Date: Thursday, September 10, 2026
Time: 10:50 a.m. PT
Location: San Francisco, California
The presentation will be webcast live on Credo’s IR website at http://investors.credosemi.com/. The webcast replay will be available as soon as possible following the event on Credo’s IR website.
About Credo
Credo’s mission is to transform connectivity at scale through fast, reliable, and energy-efficient system solutions. Our high-speed copper and optical interconnect technologies deliver industry-leading power and performance from chip to cluster to meet the ever-expanding data infrastructure demands of AI.
Our vertically integrated connectivity portfolio is comprised of our flagship purple ZeroFlap (ZF) Active Electrical Cables (AECs) and ZF optical transceivers; optical components including silicon photonics-based photonic integrated circuits (SiPho PICs) and DSPs; OmniConnect AI memory and chip-to-chip interconnect; and retimers for Ethernet and PCIe—supported by our PILOT diagnostic and analytics software platform. Credo innovations enable our customers to connect the systems that connect the world.
For more information, please visit https://www.credosemi.com. Follow Credo on LinkedIn.
Credo, the Credo logo and the color purple when associated with AECs are registered trademarks of Credo Technology Group Limited in the United States and other jurisdictions. All other trademarks referenced herein are the property of their respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260827890021/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
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.
CRDO heads into fiscal Q1 earnings with surging revenues and EPS estimates, strong AI demand and risks from valuation, supply and customer concentration.
Explore the exciting world of Credo Technology Group (CRDO -1.48%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
*Stock prices used were the prices of July 8, 2026. The video was published on Aug. 20, 2026.
Anand Chokkavelu has no position in any of the stocks mentioned. Jason Hall has no position in any of the stocks mentioned. Jon Quast has positions in Credo Technology Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Credo Technology (NASDAQ:CRDO | CRDO Price Prediction) has been one of the most explosive AI infrastructure stories of 2026, with shares up 70.94% year to date as hyperscaler demand for high-speed connectivity accelerates. With the stock trading at $234.59, our proprietary model suggests the easy money has already been made, but fundamentals still support modestly higher prices over the next twelve months.
Our 24/7 Wall St. price target for Credo is $246.78, implying 5.12% upside from current levels. The recommendation is buy with high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $234.59 24/7 Wall St. Price Target $246.78 Upside 5.12% Recommendation BUY Confidence Level 90% From March Lows to a Record Quarter Credo rallied from $116.88 in March 2026 to current levels. The stock trades roughly 9% below its 52-week high of $308.67, with a low of $86.48. One-month performance stands at 21.36% and one-year returns are 107.15%.
The June 1 earnings report was the catalyst. Credo delivered Q4 FY2026 revenue of $437 million, up 157% year over year, and non-GAAP EPS of $1.16 versus $1.03 consensus. Full-year revenue tripled to $1.3 billion. CEO Bill Brennan called fiscal 2027 “an inflection point for Credo’s optical business,” guiding to more than 80% revenue growth for the year.
The Case for $330+ Bulls have a credible path to higher valuations. Our bull case scenario projects $334.66 over twelve months, a 42.55% return. Wall Street consensus sits at $281.13, backed by 4 strong buy and 14 buy ratings against just 1 hold.
The optical portfolio drives the story. Brennan expects each of three optical categories (DSPs, ZeroFlap optics, and silicon photonics PICs) to contribute more than $100 million in FY27, totaling more than $600 million.
He flagged NeoClouds as a potential 20% of total revenue. Non-GAAP net margin runs near 51.9%, remarkable for a fabless semiconductor.
What Could Go Wrong Customer concentration is severe. The top four customers made up 34%, 27%, 16%, and 10% of Q4 revenue. Any single hyperscaler pullback would hit hard. Insider activity has been net selling, with 277 recent transactions skewed to sales, though insider selling at a stock up triple digits is routine profit-taking.
Valuation is stretched at a trailing P/E of 103 and price-to-sales of 40. Our bear case projects $196.10, a 16.47% drawdown, if AI capex growth decelerates or new-product margin compression materializes. The power, cooling, and networking suppliers riding the same buildout offer a less concentrated way to play the theme (we pulled together seven of them in a free report here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers)).
How Credo Compares to Marvell and Broadcom Marvell Technology (NASDAQ:MRVL) is the closest peer in custom silicon and data center connectivity. Marvell is up 154.54% year to date, meaningfully outrunning Credo’s 70.94% gain. That gap suggests Credo may have catch-up room, making our target look conservative if AI capex holds.
Broadcom (NASDAQ:AVGO) is the mega-cap benchmark for AI networking silicon. Broadcom trades at an implied P/E of 45, roughly a third of Credo’s multiple. That contrast frames Credo as the higher-growth, higher-risk name. Our 5.12% base case looks reasonable given Broadcom itself only offers 11.8% upside in our model.
I’d Buy It Here, With Discipline My 24/7 Wall St. price target is $246.78 with a buy rating at 90% confidence. The tipping factor is the fiscal 2027 optical inflection, which management has clearly telegraphed.
I’d be a buyer if optical revenue tracks toward the $600 million guide. I’d stay on the sidelines if AI hyperscaler capex shows signs of a top or if gross margins slip below 67%.
Year 24/7 Wall St. Price Target 2026 $246.78 2027 $265 2028 $280 2029 $290 2030 $300.40 These projections assume Credo executes on optical ramps and hyperscaler diversification. Significant upside could result from NeoCloud penetration, while downside would follow any AI capex reset.
Contact [email protected] for any questions or corrections.
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Stock to Watch: Credo Technology Group Holding Ltd. (CRDO - Free Report) Credo Technology Group Holding Ltd offers high-speed connectivity solutions. At the core of Credo’s business is its Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technology stack. Leveraging this foundation, Credo offers a diversified suite of solutions, including integrated circuits (ICs), retimers, optical DSPs, Active Electrical Cables (AECs), SerDes chiplets and SerDes IP licensing.
CRDO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CRDO has a Growth Style Score of A, forecasting year-over-year earnings growth of 72.8% for the current fiscal year.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.04 to $5.98 per share. CRDO boasts an average earnings surprise of +27.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CRDO should be on investors' short list.
Key Takeaways Astera Labs' Q2 2026 revenues surged 104% to $392.4M, led by AI fabric and signal conditioning.Credo expects over 80% fiscal 2027 revenue growth, with optical revenues projected above $600 million.Astera Labs trades at 19.1X forward sales compared with Credo's 16.29X, after stronger year-to-date gains. Amid the proliferation of artificial intelligence (AI), investors are focusing on companies that provide the infrastructure behind it. This is creating strong market opportunities for companies specializing in high-speed connectivity solutions essential to AI data centers.
Credo Technology Group Holding Ltd. (CRDO - Free Report) and Astera Labs (ALAB - Free Report) are prominent pure-play beneficiaries of this trend. Both players bring their unique strengths to the table, making it an intriguing comparison for investors.
Now the question arises: which stock makes a better investment pick at present? Let us dive into the fundamentals, valuations, growth outlook and risks for each company.
The Case for CRDOCRDO’s focus on high-performance, energy-efficient connectivity solutions gives it strategic relevance as hyperscalers and cloud service providers overhaul their network architectures. Fiscal 2026 was a breakout year, with revenues surpassing $1.3 billion, more than tripling year over year. Non-GAAP net income increased more than fivefold.
AECs sit at the core of its growth narrative, playing an increasingly critical role in AI-driven networking deployments. According to Credo, the adoption of zero-flap AECs is accelerating because they deliver up to 1,000x higher reliability while consuming less power compared with optical alternatives. These advantages are particularly valuable in large XPU clusters, where network failures can disrupt operations and lead to high costs. Beyond the traditional hyperscalers, Credo is also seeing increasing demand from emerging Neocloud providers.
In addition to AEC, CRDO is now focusing on the optical business. 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 DustPhotonics 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 brings a roadmap to 3.2T solutions and beyond.
As revenues scale, Credo is beginning to show signs of operating leverage. For fiscal 2027, gross margins are projected to stay in line with fiscal 2026 levels, while non-GAAP net margins are expected to remain around 50%, even as the company continues to invest in R&D.
However, no investment case is without risks. Macroeconomic uncertainties and exposure to the AI investment cycle amid increasing market competition remain concerns. On the last earnings call, Credo noted ongoing tightness in the supply chain. While the company has taken steps to secure capacity, disruptions could still affect its ability to meet demand.
The Case for ALABStrong business momentum for ALAB is underpinned by the expanding role in delivering comprehensive connectivity infrastructure at the rack scale. The company is benefiting from increased spending on AI and cloud infrastructure by hyperscalers. On the last earnings call, management highlighted several industry forecasts that point to hyperscaler AI and cloud infrastructure spending in 2027 reaching into the $1 trillion range as sovereign AI, inference workloads and enterprise adoption expand rapidly.
The company recently reported second-quarter 2026 results, wherein revenues surged 104% year over year to $392.4 million and increased 27% sequentially. Broad-based strength, particularly for its AI fabric and signal-conditioning portfolios, acted as catalysts. PCIe 6 products (across AI fabric and signal conditioning portfolio) accounted for more than half of total revenues, up from roughly one-third in the prior quarter.
Scorpio AI Fabric Switch portfolio is a key catalyst for ALAB. The high-radix Scorpio X-Series has entered volume production and is expected to ramp significantly in the second half. Scorpio is expected to become ALAB’s largest product family in the third quarter, one quarter earlier than previously anticipated. At present, the company is shipping multiple Scorpio X configurations for scale-up applications to its initial customers and expects to ship to more customers by year-end.
Management estimates the merchant scale-up switching TAM at $20 billion and expects the content opportunity for Scorpio X alone to eventually exceed $1,000 per XPU in future generations of AI platforms.
Beyond Scorpio, Astera has multiple growth engines. Aries is benefiting from retimers and gearboxes adoption across scale-up and scale-out networks in AI and general-purpose platforms. Taurus is benefiting from the transition toward 800G connectivity. The recently expanded 200-gig-per-lane retimers and redrivers are expected to double the addressable opportunity for Taurus to more than $4 billion by 2030. Meanwhile, renewed CXL momentum has resulted in a new Leo design win at a U.S. hyperscaler, with standard and custom Leo memory controllers expected to ship in volume to two U.S. hyperscalers in 2027.
Strong growth is translating into operating leverage as well. Second-quarter non-GAAP operating margin expanded 290 basis points sequentially to 39.1%. For the third quarter, ALAB expects revenues of $540-$560 million, implying roughly 40% sequential growth at the midpoint, while non-GAAP operating margin is projected to reach approximately 43%, expanding 400 bps sequentially.
However, Astera’s increasing investment across PCIe 7, UALink, optical connectivity and custom silicon, while a necessity, might prove a drag on margins if revenue growth falters as costs are incurred ahead of several expected revenue ramps. Operating expenses rose to $135.8 million, and the company expects further increases in the range of $156 million to $160 million in the third quarter of 2026. Execution risks, competitive semiconductor landscape, along with dynamic macro environment and other variables, remain a concern.
Price Performance & Valuations of CRDO & ALABYear to date, both CRDO and ALAB are up 63.2% and 73.8%, respectively.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales multiple, Credo is trading at 16.29X, lower than ALAB’s 19.10X.
Image Source: Zacks Investment Research
How Do the Consensus Estimates Compare for CRDO & ALAB?Analysts have marginally revised their earnings estimates upward for CRDO for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Estimates have been revised 34.6% upward for ALAB’s bottom line.
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.
