Credo Technology Group Holding’s consensus price target was raised from $109.50 to $150.92 as analysts cited robust Q1 results, accelerating hyperscaler adoption, and expansion in AI infrastructure and AEC markets driving higher long-term earnings growth expectations.
Analyst Commentary
- Bullish analysts highlighted robust Q1 results featuring a significant "beat and raise," with guidance for subsequent quarters well ahead of consensus, demonstrating strong core business and Active Electrical Cables (AEC) program growth.
- Rapid customer base diversification, with a fourth hyperscaler expected to reach approximately 10% of revenue by FY26, is cited as de-risking revenue concentration and supporting higher growth forecasts.
- Analysts increased long-term earnings estimates, with some now projecting up to $5 EPS and sustained annual growth of 25%-30% over the next several years.
- Expansion of AECs into additional hyperscaler networks and scale-up opportunities is viewed as materially broadening Credo's total addressable market and future growth runway.
- Continued leadership and growing market share in AI infrastructure and high-performance connectivity, along with positive trends in the global AI server and data center market, are seen as key catalysts behind recent price target upward revisions.
What's in the News
- Launched Bluebird Digital Signal Processor for 1.6Tbps optical transceivers, enabling energy-efficient, ultra-low latency data transmission for next-generation AI networks.
- Issued earnings guidance for fiscal Q2, projecting revenue between $230.0 million and $240.0 million, with GAAP gross margin expected between 63.5% and 65.5%.
- Reached a license and settlement agreement with Volex plc regarding active electrical cable technology patents, resulting in the withdrawal of all related lawsuits.
- Achieved a license and settlement agreement with Amphenol, ending all ongoing patent disputes between the two companies over active electrical cable technology.
Valuation Changes
Summary of Valuation Changes for Credo Technology Group Holding
- The Consensus Analyst Price Target has significantly risen from $109.50 to $150.92.
- The Consensus Revenue Growth forecasts for Credo Technology Group Holding has significantly risen from 33.8% per annum to 39.5% per annum.
- The Future P/E for Credo Technology Group Holding has fallen from 88.18x to 81.21x.
Disclaimer
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