Update shared on04 Sep 2025
Fair value Increased 1.15%Credo Technology Group Holding's consensus price target was revised upward to $109.50 as analysts cited stronger customer diversification, expanding AI server market demand, and improved long-term earnings power driven by new product adoption and sector tailwinds.
Analyst Commentary
- Bullish analysts cite further customer diversification and material upward revisions to company guidance as key factors supporting higher price targets.
- Significant growth in the global artificial intelligence server market, driven by leading hyperscalers, is seen as a meaningful tailwind for Credo, particularly with the adoption of new product platforms such as Rubin.
- Improved earnings power projections, with EPS estimates for CY27 (and longer-term forecasts) now materially above consensus, are being driven by increases in the company's total addressable market for architecture, engineering, and construction.
- The company is recognized as an early, open-ended, and diversifying growth story, particularly due to its positioning in high-speed, low-power connectivity solutions for rapidly expanding AI-driven datacenter networks.
- Strength in data center and AI server markets, as well as upward re-ratings after broad sector moves (such as the "Liberation Day" selloff), are leading analysts to revise estimates and reaffirm outperform or buy ratings.
What's in the News
- Issued Q2 FY26 revenue guidance of $230–240 million and GAAP gross margin of 63.5–65.5%.
- Settled patent dispute with Volex plc; lawsuit to be withdrawn under new license and settlement agreement.
- Resolved all patent disputes with Amphenol through a license and settlement agreement; lawsuits to be dismissed.
Valuation Changes
Summary of Valuation Changes for Credo Technology Group Holding
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $108.25 to $109.50.
- The Future P/E for Credo Technology Group Holding remained effectively unchanged, moving only marginally from 86.80x to 87.71x.
- The Discount Rate for Credo Technology Group Holding remained effectively unchanged, moving only marginally from 10.09% to 10.06%.
Disclaimer
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