Credo Technology Group (NASDAQ:CRDO) Trading Up 12.9% - Time to Buy?

Key Points

• Credo Technology Group shares jumped 12.9% in midday trading, with heavy volume and the stock reaching an intraday high of $218.95 after closing previously at $193.39.
• Bullish news flow helped fuel the move, including an AI Factory partnership with Rebellions, a Zacks upgrade from hold to strong-buy, and broader coverage positioning Credo as a potential beneficiary of the AI boom.
• Analyst sentiment remains constructive overall, with a consensus rating of Buy and an average price target of $207.71, while the company also reported strong recent earnings growth and revenue that beat estimates.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) was up 12.9% during mid-day trading on Friday . The company traded as high as $218.95 and last traded at $218.41. Approximately 8,467,649 shares traded hands during mid-day trading, an increase of 20% from the average daily volume of 7,078,404 shares. The stock had previously closed at $193.39.

Key Credo Technology Group News

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Credo announced an AI Factory partnership with Rebellions to integrate its ZeroFlap cables into RebelPOD, which investors viewed as a meaningful validation of Credo’s AI networking products and a catalyst for future adoption. Article title: AI Factory Partnership With Rebellions Sends Credo's Shares Up 8%
• Positive Sentiment: Zacks Research upgraded Credo from hold to strong-buy, adding to bullish sentiment around the stock. Article title: Credo Technology Group was upgraded by Zacks Research from "hold" to "strong-buy"
• Positive Sentiment: Several recent articles highlighted Credo as one of the alternative AI stocks with more upside than Nvidia, reinforcing the market’s view that CRDO could benefit from the AI boom and edge-computing demand. Article title: Has Nvidia Become Too Big? 3 Alternative AI Stocks
• Neutral Sentiment: Commentary comparing CRDO with Coherent and other AI-connectivity names focused on Credo’s AEC adoption plans, new product families, and the DustPhotonics deal, but did not introduce a new hard catalyst. Article title: CRDO vs. COHR: Which AI Connectivity Stock Is the Better Buy?
• Neutral Sentiment: Broader market coverage noted that Nvidia weakened even after strong earnings, but AI-related names like Credo were among the companies still attracting interest. Article title: Stock Market Today: Dow Up, Nvidia Sinks 2% While Intuit Craters; These AI Companies Thrive (Live Coverage)

Analyst Ratings Changes

A number of analysts have issued reports on CRDO shares. Weiss Ratings lowered Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, April 24th. Needham & Company LLC reissued a "buy" rating and issued a $220.00 target price on shares of Credo Technology Group in a research report on Wednesday, April 15th. Craig Hallum reissued a "buy" rating and issued a $200.00 target price on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Zacks Research raised Credo Technology Group from a "hold" rating to a "strong-buy" rating in a research report on Tuesday. Finally, Rothschild & Co Redburn started coverage on Credo Technology Group in a research report on Friday, May 1st. They issued a "buy" rating and a $206.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $207.71.

Credo Technology Group Price Performance

The company's 50 day simple moving average is $144.76 and its 200 day simple moving average is $142.53. The firm has a market cap of $40.29 billion, a price-to-earnings ratio of 121.34 and a beta of 3.17.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its quarterly earnings results on Monday, March 2nd. The company reported $1.07 EPS for the quarter, topping the consensus estimate of $0.78 by $0.29. The business had revenue of $407.01 million during the quarter, compared to the consensus estimate of $385.94 million. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. The company's quarterly revenue was up 201.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.25 earnings per share. As a group, analysts forecast that Credo Technology Group Holding Ltd. will post 2.36 earnings per share for the current year.

Insider Buying and Selling at Credo Technology Group

In other Credo Technology Group news, CEO William Joseph Brennan sold 50,000 shares of the business's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $117.68, for a total value of $5,884,000.00. Following the completion of the transaction, the chief executive officer owned 1,782,502 shares in the company, valued at $209,764,835.36. The trade was a 2.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $117.60, for a total transaction of $3,234,000.00. Following the transaction, the chief technology officer owned 6,272,370 shares of the company's stock, valued at approximately $737,630,712. The trade was a 0.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 386,608 shares of company stock valued at $50,371,351. Insiders own 11.84% of the company's stock.

Hedge Funds Weigh In On Credo Technology Group

A number of institutional investors and hedge funds have recently modified their holdings of CRDO. Corient Private Wealth LLC grew its stake in shares of Credo Technology Group by 239,024.5% during the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company's stock worth $517,835,000 after purchasing an additional 3,597,318 shares in the last quarter. Amundi grew its stake in shares of Credo Technology Group by 28,478.2% during the fourth quarter. Amundi now owns 1,559,796 shares of the company's stock worth $224,439,000 after purchasing an additional 1,554,338 shares in the last quarter. Janus Henderson Group PLC grew its stake in shares of Credo Technology Group by 841.9% during the fourth quarter. Janus Henderson Group PLC now owns 1,591,348 shares of the company's stock worth $228,979,000 after purchasing an additional 1,422,391 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Credo Technology Group by 161.5% during the third quarter. Bank of America Corp DE now owns 2,278,073 shares of the company's stock worth $331,710,000 after purchasing an additional 1,406,752 shares in the last quarter. Finally, Rafferty Asset Management LLC acquired a new position in shares of Credo Technology Group during the third quarter worth $183,553,000. Institutional investors and hedge funds own 80.46% of the company's stock.

Credo Technology Group Company Profile

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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