Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 3 Jun, 26 | CRDO | Buy | USD 212.87 | USD 225.0 | USD 238.0 | 5 days | Closed |
15.00%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet, and PCIe applications in the United States, Taiwan, Mainland China, Hong Kong, and internationally. It provides HiWire active electrical cables solutions, including HiWire CLOS, SPAN, SHIFT, and SWITCH; optical PAM4 digital signal processors; low-power line card PHY; serializer/deserializer (SerDes) chiplets; and SerDes IP, as well as integrated circuits. The company also offers intellectual property solutions consist of SerDes IP licensing. In addition, it offers predictive integrity link optimization and telemetry; PCIe retimer solutions; and support and maintenance, engineering, and royalties services. The company sells its products to hyperscalers, original equipment manufacturers, original design manufacturers, and optical module manufacturers, as well as into the enterprise and HPC markets. Credo Technology Group Holding Ltd was founded in 2008 and is based in Grand Cayman, the Cayman Islands.
Increase in Revenue: FY26 Revenue of USD 1,335.1 Mn vs FY25 Revenue of USD 436.8 Mn
Increase in Gross Profit: FY26 Gross Profit of USD 908.3 Mn vs FY25 Gross Profit of USD 282.9 Mn
Increase in Cost of Revenue: FY26 Cost of Revenue of USD 426.8 Mn vs FY25 Cost of Revenue of USD 153.9 Mn
Increase in Selling, General and Administrative Expenses: FY26 Selling, General and Administrative Expenses of USD 184.0 Mn vs FY25 Selling, General and Administrative Expenses of USD 98.9 Mn
The company remains exposed to customer concentration risk and potential fluctuations in AI infrastructure spending, which could materially impact revenue growth, profitability, and future demand for its connectivity solutions
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 212.87 | 190.0 | 225.0 | 238.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
AI Infrastructure Demand Driving Exceptional Revenue Growth: Credo Technology Group delivered a transformational FY26 performance, supported by strong demand for AI-driven networking and connectivity solutions. Revenue more than tripled during the year, reflecting broad adoption of its high-speed copper and optical interconnect products. The company continues to benefit from increasing AI cluster deployments and rising data center infrastructure investments.
Strong Profitability Expansion and Operating Leverage: The company achieved significant earnings growth through improved scale and operational efficiency. Higher revenue contribution, coupled with disciplined cost management, drove substantial expansion in operating income and net income margins. Non-GAAP profitability strengthened considerably, highlighting the scalability of Credo’s business model as revenue growth outpaced expense growth.
Robust Product Portfolio Supporting Long-Term Growth: Credo’s vertically integrated portfolio, including Active Electrical Cables, optical transceivers, retimers, DSPs, and memory connectivity solutions, continues to strengthen its competitive position. Its solutions help customers improve GPU utilization, network reliability, and power efficiency, making the company a key enabler of AI infrastructure deployments across hyperscale and enterprise environments.
Strong Balance Sheet Enhances Strategic Flexibility: The company ended FY26 with approximately USD 1.4 billion in cash and short-term investments, providing substantial financial flexibility. The strengthened balance sheet supports ongoing investments in research and development, product innovation, acquisitions, and capacity expansion while maintaining a strong liquidity profile to capitalize on future market opportunities.
Positive Outlook Supported by Continued Demand Momentum: Management expects revenue in Q1FY27 to reach between USD 465 million and USD 475 million, indicating continued growth momentum. The outlook reflects sustained demand from AI infrastructure customers and confidence in the company’s ability to deliver innovative connectivity solutions that address increasing bandwidth, reliability, and energy-efficiency requirements.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Credo Technology Group Holding Ltd. (NASDAQ: CRDO) at the current market price of USD 212.87, as on 03 June 2026 at 8:52 am PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductors
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| CRDO Credo Technology Group Holding Ltd |
22.50 9.02% | 271.83 | 95.90 | 35.59 | 30.14 | 17.41 | 28.94 | 88.24 |
| NVDA NVIDIA Corporation |
6.04 2.95% | 210.69 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
18.45 4.70% | 411.35 | 78.55 | 35.84 | 27.93 | 23.69 | 28.47 | 52.08 |
| TSM Taiwan Semiconductor Manufacturing |
29.97 6.94% | 462.12 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| AMD Advanced Micro Devices Inc |
24.89 4.86% | 537.37 | 108.58 | 40.98 | 13.39 | 7.12 | 12.75 | 60.70 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on June 3, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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