Credo Technology: Stifel Reiterates Buy, Raises PT to $155 from $130

Credo Technology: Stifel Reiterates Buy, Raises PT to $155 from $130

Stifel Financial has reiterated its "Buy" rating on Credo Technology Group Holding Ltd (NASDAQ: CRDO) and raised its price target to $155 from $130, reflecting the company's strong performance and robust growth prospects. This latest upgrade comes amidst a series of positive analyst reports that have highlighted Credo's potential in the AI-driven infrastructure market.

According to Stifel, Credo's Q1 2026 financial results, which saw revenue surge 274% to $223.1 million, underscored the company's transformation from a niche semiconductor player to a critical enabler of AI infrastructure [1]. The company's non-GAAP gross margin of 67.6% in Q1 2026 further demonstrates the profitability of its cutting-edge solutions [4].

Credo's strategic pivot towards Active Electrical Cables (AECs) and optical DSP solutions, following the resolution of patent disputes with Amphenol, has positioned the company to capture a significant share of the $12 billion AI interconnect market by 2027 [2]. The company's Q2 2026 revenue guidance of $230–240 million, along with a forward-looking gross margin structure, indicates a sustainable competitive advantage in AI-driven infrastructure.

Analysts have also been impressed by Credo's expanding customer base, with the addition of a fourth hyperscaler beyond Amazon, xAI, and Microsoft, and a fifth customer reportedly on the way [3]. This diversification, coupled with the company's strong gross profit margin of 65% and minimal debt, positions Credo for continued expansion.

Stifel's upgrade reflects a positive outlook from the investment community following Credo's recent performance. The company's impressive revenue growth of 126% year-over-year, combined with its leadership in AECs, has led to a series of price target increases from major financial institutions [2][3]. As the AI arms race intensifies, Credo appears well-positioned to set the pace.

References:
[1] Credo Technology's Latest Moves: Is Now the Time? [https://stockstotrade.com/news/credo-technology-group-holding-ltd-crdo-news-2025_08_28-2/]
[2] Credo Technology Group (CRDO) AI Growth and Revenue ... [https://www.monexa.ai/blog/credo-technology-group-crdo-surges-with-ai-data-ce-CRDO-2025-07-28]
[3] Credo Technology Group Holding Ltd Reports First Quarter of Fiscal Year 2026 Financial Results [https://investors.credosemi.com/news-events/news/news-details/2025/Credo-Technology-Group-Holding-Ltd-Reports-First-Quarter-of-Fiscal-Year-2026-Financial-Results/]
[4] Earnings call transcript: Credo Technology's Q1 2025 ... [https://www.investing.com/news/transcripts/earnings-call-transcript-credo-technologys-q1-2025-results-beat-expectations-93CH-4223132]