CRDO Stock Recent News

I rate Credo Technology a strong buy with a $100 price target within 12 months, due to its robust growth roadmap and favorable market conditions. Credo is positioned for strong growth, driven by its innovative high-speed data center interconnect solutions and a solid customer base in AI and HPC. The company's high gross margins, strong operating leverage, and substantial cash reserves support its rapid scalability and profitability in the booming AI networking market.

Credo Technology Group Holding Ltd CRDO stock has slipped 33.3% over the past three months, significantly more than the Electronic-Semiconductors industry's decline of 16.4%. The broader Computer and Technology sector and S&P 500 Composite have registered declines of 11.5% and 7.8%, respectively, over the same time frame.

Credo Technology Group (CRDO) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

I reiterate my "Buy" rating on Credo Technology Group, seeing solid fundamentals and recent innovations that expand its TAM, despite broader market turbulence. Credo's Q3 FY2025 revenue surged 154% YoY, driven by AI platform scaling and AEC becoming the standard for intra-rack connections, indicating strong growth potential. Credo's valuation has become attractive for GARP investors after a 28% YTD dip, with a forward PEG ratio significantly lower than the IT sector's median.

Both Credo and Marvell are well-positioned to gain from the rapidly growing data center market. Let's find out which semiconductor stock is a better bet.

Credo's revenue growth is accelerating due to strong product adoption by hyperscalers, and a shift from AI training to inference workloads is another growth catalyst. The company is well-positioned for margin expansion through scale-driven operating leverage effects. I estimate another 500-600bps of EBIT margin improvement potential over the next few quarters. Valuations have moderated sharply and are now more attractive, especially since the company has simultaneously improved revenue and earnings growth expectations. This makes it a gift from Mr Market.

Credo Technology's stock possesses all the hallmarks of a "Strong Buy": robust revenue growth momentum, impressive operating leverage, and a fortress balance sheet. The company benefits from high demand for its high-speed connectivity solutions, driven by the ongoing AI investment spree and digital revolution. Risks include high revenue concentration from Amazon and potential impacts from geopolitical developments and tariffs, but the long-term investment outlook remains positive.

Credo Technology is benefiting from an innovative portfolio and expanding AI-driven market opportunities.

Shares of new artificial intelligence (AI) winners Marvell Technologies (MRVL 2.67%), Credo Technologies (CRDO 7.57%), and Nebius Group (NBIS 4.07%) plunged in March, down 32.9%, 27.2%, and 35%, respectively, according to data from S&P Global Market Intelligence.

Credo launches its ultra-low power Lark Optical DSP family, designed to transform 800G optical transceiver technology.