Credo Technology's 15-minute chart shows RSI overbought, Bollinger Bands narrowing.

Credo Technology's 15-minute chart has triggered an RSI Overbought signal and Bollinger Bands Narrowing at 08/28/2025 14:30. This indicates that the stock price has experienced a rapid upward trend that is not supported by fundamental analysis, and the magnitude of price fluctuations has decreased.

Credo Technology Group Holding (CRDO) has seen a significant surge in its share price, with a 92% increase in the last quarter, according to recent financial reports [1]. This performance stands out against broader market indices, which only inched higher with tech stocks showing mixed movements. The company's impressive financial results, including a remarkable increase in quarterly revenue and net income, have shaped investor confidence [1].

The recent license and settlement agreement between Credo Technology Group Holding and Volex plc, resolving a significant patent dispute regarding its active electrical cable technology, is a critical development that could have meaningful implications on CRDO's revenue and earnings forecasts [1]. This legal resolution strengthens Credo's product offerings, supporting its expansion into PCIe products and enhancing its high-speed connectivity solutions. As Credo progresses with its diversification into PCIe retimers and optical DSP, the legal resolution may facilitate smoother market adoption and entry into broader connectivity opportunities, potentially underpinning revenue growth moving forward [1].

Over a three-year period, Credo's total shareholder return rose by a very large margin, marking substantial growth and far surpassing the broader one-year return of the US semiconductor industry, which stood at 34.4% [1]. This demonstrates robust long-term performance in contrast to common industry returns recently.

The current share price of US$120.10 indicates a premium above the consensus price target of US$108.25, reflecting a 9.87% discount to the price target [1]. This leaves investors evaluating the long-term growth potential and recent developments in comparison to analyst expectations. As Credo navigates through revenue growth forecasts and potential margin improvements, the difference between current pricing and analyst outlook underscores ongoing market optimism and complexity in valuing Credo's strategic initiatives.

On August 28, 2025, at 14:30, Credo Technology's 15-minute chart triggered an RSI Overbought signal and Bollinger Bands Narrowing [2]. This indicates that the stock price has experienced a rapid upward trend that is not supported by fundamental analysis, and the magnitude of price fluctuations has decreased. This signals a potential correction in the stock price, as the market may be overvaluing the company's recent performance.

Credo Technology Group Holding has also been riding high on strong sales of its networking gear for AI and cloud computing, with its stock jumping to an all-time high on Thursday [2]. The company is expected to report its fiscal first-quarter results next week, with analysts expecting earnings of 35 cents a share on sales of $190.6 million in the quarter ended August 2 [2].

Despite the recent strong performance, investors should be aware of one weakness for Credo Technology Group Holding: the company's reliance on a small number of major customers, including Amazon, Microsoft, and xAI [1]. This could pose a risk to the company's revenue growth if any of these customers reduce their spending or switch to competitors.

In conclusion, Credo Technology Group Holding has shown impressive financial performance and strategic advancements, but investors should be cautious about the potential risks associated with the company's rapid share price increase and reliance on a small number of major customers.

References:
[1] https://ca.finance.yahoo.com/news/credo-technology-group-holding-crdo-174315333.html
[2] https://www.investors.com/news/technology/credo-stock-crdo-record-high-fiscal-q1-2026-preview/?src=A00220&yptr=yahoo