{"slug": "credo-is-up-71-this-year-and-wall-street-just-raised-its-targets-again", "title": "Credo Is Up 71% This Year and Wall Street Just Raised Its Targets Again", "summary": "Credo Technology (NASDAQ: CRDO) shares have surged 70.94% year to date to $234.59, driven by hyperscaler demand for high-speed connectivity, and 24/7 Wall St. has set a price target of $246.78, implying 5.12% upside, with a buy recommendation and 90% confidence. The company reported Q4 FY2026 revenue of $437 million, up 157% year over year, and non-GAAP EPS of $1.16, beating consensus, while CEO Bill Brennan guided to more than 80% revenue growth for fiscal 2027. Risks include severe customer concentration, with top four customers accounting for 34%, 27%, 16%, and 10% of Q4 revenue, and a stretched valuation at a trailing P/E of 103.", "body_md": "**Credo Technology** ([NASDAQ:CRDO](https://247wallst.com/companies/CRDO/) | [CRDO Price Prediction](https://247wallst.com/companies/crdo/price-prediction)) has been one of the most explosive [AI infrastructure](https://247wallst.com/investing/2026/01/15/taiwan-semiconductor-proves-the-ai-megatrend-is-alive-and-well/) stories of 2026, with shares up 70.94% year to date as [hyperscaler demand for high-speed connectivity](https://247wallst.com/investing/2026/05/01/hyperscalers-hit-700-billion-in-2026-ai-spending-plans/) accelerates. With the stock trading at $234.59, our proprietary model suggests the easy money has already been made, but fundamentals still support modestly higher prices over the next twelve months.\n\nOur 24/7 Wall St. price target for Credo is $246.78, implying 5.12% upside from current levels. The recommendation is buy with high confidence.\n\n## 24/7 Wall St. Price Target Summary\n\n| Metric | Value |\n|---|---|\n| Current Price | $234.59 |\n| 24/7 Wall St. Price Target | $246.78 |\n| Upside | 5.12% |\n| Recommendation | BUY |\n| Confidence Level | 90% |\n\n## From March Lows to a Record Quarter\n\nCredo rallied from $116.88 in March 2026 to current levels. The stock trades roughly 9% below its 52-week high of $308.67, with a low of $86.48. One-month performance stands at 21.36% and one-year returns are 107.15%.\n\nThe [June 1 earnings report](https://247wallst.com/investing/2026/06/01/live-will-credo-keep-rallying-after-q4-earnings-tonight/) was the catalyst. Credo delivered Q4 FY2026 revenue of $437 million, up 157% year over year, and non-GAAP EPS of $1.16 versus $1.03 consensus. Full-year revenue tripled to $1.3 billion. CEO Bill Brennan called fiscal 2027 “an inflection point for Credo’s optical business,” guiding to more than 80% revenue growth for the year.\n\n## The Case for $330+\n\nBulls have a credible path to higher valuations. Our bull case scenario projects $334.66 over twelve months, a 42.55% return. Wall Street consensus sits at $281.13, backed by [4 strong buy and 14 buy ratings against just 1 hold](https://247wallst.com/investing/2026/08/05/price-prediction-credo-will-trade-at-this-price-in-2030/).\n\n[The optical portfolio drives the story.](https://247wallst.com/investing/2026/07/23/credo-or-marvell-who-leads-the-ai-connectivity-race/) Brennan expects each of three optical categories (DSPs, ZeroFlap optics, and silicon photonics PICs) to contribute more than $100 million in FY27, totaling more than $600 million.\n\nHe flagged NeoClouds as a potential 20% of total revenue. Non-GAAP net margin runs near 51.9%, remarkable for a fabless semiconductor.\n\n## What Could Go Wrong\n\nCustomer concentration is severe. The top four customers made up 34%, 27%, 16%, and 10% of Q4 revenue. Any single hyperscaler pullback would hit hard. Insider activity has been net selling, with 277 recent transactions skewed to sales, though insider selling at a stock up triple digits is routine profit-taking.\n\nValuation is stretched at a trailing P/E of 103 and price-to-sales of 40. Our bear case projects $196.10, a 16.47% drawdown, if [AI capex growth](https://247wallst.com/investing/2026/07/22/morgan-stanley-ai-spending-could-hit-1-4-trillion-by-2028-but-60-leaves-the-us/) decelerates or new-product margin compression materializes. The power, cooling, and networking suppliers riding the same buildout offer a less concentrated way to play the theme (we pulled together seven of them in a free report here: [7 Stocks Powering the AI Boom (That Aren’t Chipmakers)](https://247wallst.com/pages/ai-power-seven-offer-d905ec99.html)).\n\n## How Credo Compares to Marvell and Broadcom\n\n**Marvell Technology** ([NASDAQ:MRVL](https://247wallst.com/companies/MRVL/)) is the closest peer in custom silicon and data center connectivity. Marvell is up 154.54% year to date, meaningfully outrunning Credo’s 70.94% gain. That gap suggests Credo may have catch-up room, making our target look conservative if AI capex holds.\n\n**Broadcom** ([NASDAQ:AVGO](https://247wallst.com/companies/AVGO/)) is the mega-cap benchmark for AI networking silicon. Broadcom trades at an implied P/E of 45, roughly a third of Credo’s multiple. That contrast frames Credo as the higher-growth, higher-risk name. Our 5.12% base case looks reasonable given Broadcom itself only offers 11.8% upside in our model.\n\n## I’d Buy It Here, With Discipline\n\nMy 24/7 Wall St. price target is $246.78 with a buy rating at 90% confidence. The [tipping factor is the fiscal 2027 optical inflection](https://247wallst.com/investing/2026/07/20/why-i-cant-stop-buying-credo-technology-stock/), which management has clearly telegraphed.\n\nI’d be a buyer if optical revenue tracks toward the $600 million guide. I’d stay on the sidelines if AI hyperscaler capex shows signs of a top or if gross margins slip below 67%.\n\n| Year | 24/7 Wall St. Price Target |\n|---|---|\n| 2026 | $246.78 |\n| 2027 | $265 |\n| 2028 | $280 |\n| 2029 | $290 |\n| 2030 | $300.40 |\n\nThese projections assume Credo executes on optical ramps and hyperscaler diversification. Significant upside could result from NeoCloud penetration, while downside would follow any AI capex reset.\n\n*Contact [email protected] for any questions or corrections.*", "url": "https://wpnews.pro/news/credo-is-up-71-this-year-and-wall-street-just-raised-its-targets-again", "canonical_source": "https://247wallst.com/investing/2026/08/20/credo-is-up-71-this-year-and-wall-street-just-raised-its-targets-again/", "published_at": "2026-08-20 14:30:57+00:00", "updated_at": "2026-08-20 14:45:42.418039+00:00", "lang": "en", "topics": ["ai-infrastructure", "ai-chips", "ai-products"], "entities": ["Credo Technology", "NASDAQ:CRDO", "Bill Brennan", "Marvell Technology", "NASDAQ:MRVL", "Broadcom", "NASDAQ:AVGO", "24/7 Wall St."], "alternates": {"html": "https://wpnews.pro/news/credo-is-up-71-this-year-and-wall-street-just-raised-its-targets-again", "markdown": "https://wpnews.pro/news/credo-is-up-71-this-year-and-wall-street-just-raised-its-targets-again.md", "text": "https://wpnews.pro/news/credo-is-up-71-this-year-and-wall-street-just-raised-its-targets-again.txt", "jsonld": "https://wpnews.pro/news/credo-is-up-71-this-year-and-wall-street-just-raised-its-targets-again.jsonld"}}