Alex Sirois
5 min read
Quick Read
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Down 43% from its 52-week high despite 115% revenue growth, CRDO trades at $176 against a $282 consensus target, implying 61% upside.
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While Marvell surged 187% and Astera Labs 82% year to date, Credo sank alone and now carries the widest consensus upside gap in AI connectivity.
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Stifel’s Tore Svanberg holds a Street-high $350 target citing AEC dominance and design wins, but two customers control 61% of revenue.
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Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Credo Technology Group didn’t make the cut. Enter your email to see the names that beat CRDO. The report is free. Enter your email and see if any of your stocks made the cut.
Credo Technology (NASDAQ:CRDO) currently trades around $175.89, while the average Wall Street price target sits at $282.47. That leaves analysts modeling roughly 60.6% of upside from here, and one Street-high call implies the stock nearly doubles.
Credo is a fabless semiconductor company selling connectivity infrastructure for AI data centers: Active Electrical Cables (AECs), optical DSPs, retimers, ZeroFlap optics, and PILOT diagnostic software. Its portfolio spans “connectivity from millimeters to kilometers” across copper and optical media.
Wall Street has been paying close attention because Credo just posted 115% year-over-year revenue growth and guided for another sequential step higher. Yet the stock has been in freefall. That disconnect is the whole story.
A 43% Drawdown Despite a Blowout Quarter
Credo has fallen roughly 43% from its 52-week high of $308.67, with a 25.1% haircut in the last month. The selloff accelerated after the Q1 fiscal 2027 earnings report on September 1.
Revenue of $479 million beat consensus, non-GAAP EPS of $1.20 topped the $1.17 estimate, and management guided Q2 to $525 million to $535 million. But investors focused on customer concentration: the top customer drove 33% of revenue and the second 28%, leaving little margin for error if a hyperscaler pauses orders.
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The pullback is company-specific. The S&P 500 slipped only 0.96% over the same one-month window, and AI-adjacent peers held up far better.
