Credo Technology Soars 5.33%—Is This the Start of a Tech Bull Run?

Summary
• Credo Technology (CRDO) hits 52-week high of $106.61, up 5.33% intraday
• Q2 revenue surges 179.6% to $170M, EPS beats estimates by $0.08
• Analysts raise price targets to $115, with 13/14 'Buy' ratings
• Institutional investors add $117M stake, insiders cut holdings

Credo Technology’s stock is racing to historic highs, driven by explosive Q2 earnings, a bullish analyst frenzy, and surging demand for AI-driven connectivity solutions. With a 5.33% intraday gain and a $170M revenue surge, the stock has pierced its 52-week high of $107.0 while analysts and institutions bet big. This breakout reflects a perfect storm of financial outperformance and strategic positioning in the AI infrastructure boom.

Q2 Earnings and Analyst Upgrades Fuel CRDO Surge
Credo Technology’s 5.33% intraday gain stems from a confluence of factors. The company’s Q2 earnings report revealed a 179.6% year-over-year revenue jump to $170M, with EPS of $0.35 surpassing estimates. This performance, coupled with a 11.95% net margin, underscored its profitability amid AI-driven demand. Analysts have responded aggressively: Susquehanna raised its price target to $115, while Stifel and others boosted targets to $115 and $98, respectively. Institutional inflows, including a $117M stake by Norges Bank, and a 13/14 'Buy' analyst consensus further reinforced optimism. However, insider sales (e.g., CTO Chi Fung Cheng’s $4.47M exit) hint at mixed sentiment, balancing long-term growth bets with near-term profit-taking.

Semiconductor Sector Gains Momentum Amid AI Demand
CRDO’s surge aligns with broader semiconductor sector strength, driven by AI infrastructure demand. Competitors like AMD (AMD) rose 3.94% intraday, reflecting shared tailwinds. Recent sector news highlights AI chip smuggling risks and geopolitical tensions, yet CRDO’s focus on high-speed connectivity for data centers positions it as a key beneficiary of AI’s energy efficiency needs. While TSMC and NVIDIA dominate headlines, CRDO’s niche in SerDes and optical DSPs offers differentiated growth potential, supported by its 350x P/E ratio and 1.74% turnover rate.

Options Playbook: High-Leverage Calls for CRDO’s Bullish Momentum
• 200-day average: $60.68 (far below), RSI: 62.88 (bullish), MACD: 5.07 (positive), Bollinger Bands: 87.7–104.3
• CRDO’s 5.33% intraday gain suggests continued momentum, with key resistance at $107.0 (52W high). Short-term bullish bias aligns with a 5.18% price surge and 37.84% gain in 100-strike calls.
• Top Option 1: CRDO20250815C105
- Code: CRDO20250815C105, Call, Strike: $105, Expiry: 2025-08-15, IV: 68.44% (moderate), LVR: 14.37% (high), Delta: 0.5695 (moderate), Theta: -0.2948 (high decay), Gamma: 0.023656 (high sensitivity), Turnover: $587,939• Top Option 2: CRDO20250815C110Aggressive bulls may consider CRDO20250815C105 into a breakout above $107.0.

Backtest Credo Technology Stock Performance
The 5% intraday surge in CRDO has historically led to positive short-to-medium-term gains. The backtest data shows that after a 5% increase in CRDO, the 3-day win rate is 58.33%, the 10-day win rate is 59.43%, and the 30-day win rate is 62.72%. This indicates that CRDO tends to experience positive returns in the immediate aftermath of a significant intraday increase.

CRDO’s AI-Driven Bull Run: What to Watch Before the Next Move
Credo Technology’s 5.33% surge reflects its strategic position in AI infrastructure and analyst optimism. With a 350x P/E ratio and 13/14 'Buy' ratings, the stock’s momentum appears sustainable, but key levels like $107.0 (52W high) will test conviction. The options market favors bullish plays, as seen in high-liquidity contracts like CRDO20250815C105. Meanwhile, sector leader AMD’s 3.94% gain underscores the semiconductor sector’s strength. Investors should monitor CRDO’s ability to hold above its 50-day MA ($82.55) and watch for follow-through volume. Watch for $107.0 breakout or regulatory headwinds.