Credo Technology shares rise 15.05% intraday after Blue Heron 224G AI retimer launch and J.P. Morgan upgrade.

Credo Technology Group Holding Ltd. surged 15.05% intraday after J.P. Morgan initiated coverage with an "overweight" rating and a $165 price target, while Barclays maintained an overweight recommendation. Analysts highlighted the company’s AI-driven connectivity solutions, including the Blue Heron 224G AI scale-up retimer, and its strategic position in high-speed data center infrastructure. Recent product launches, such as ZeroFlap optical transceivers and partnerships with Arm, reinforced investor confidence in Credo’s long-term growth potential. Despite insider sales by executives and directors, positive sentiment was driven by strong Q1 revenue traction and expanding profitability, with non-GAAP gross margins rising to 67.7%. The stock’s rally aligned with broader AI infrastructure momentum, as hyperscaler demand for energy-efficient networking solutions accelerates.