# Credo Is Up 71% This Year and Wall Street Just Raised Its Targets Again > Source: > Published: 2026-08-20 14:30:57+00:00 **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. Our 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. ## 24/7 Wall St. Price Target Summary | Metric | Value | |---|---| | Current Price | $234.59 | | 24/7 Wall St. Price Target | $246.78 | | Upside | 5.12% | | Recommendation | BUY | | Confidence Level | 90% | ## From March Lows to a Record Quarter Credo 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%. The [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. ## The Case for $330+ Bulls 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/). [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. He flagged NeoClouds as a potential 20% of total revenue. Non-GAAP net margin runs near 51.9%, remarkable for a fabless semiconductor. ## What Could Go Wrong Customer 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. Valuation 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)). ## How Credo Compares to Marvell and Broadcom **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. **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. ## I’d Buy It Here, With Discipline My 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. I’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%. | Year | 24/7 Wall St. Price Target | |---|---| | 2026 | $246.78 | | 2027 | $265 | | 2028 | $280 | | 2029 | $290 | | 2030 | $300.40 | These 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. *Contact [email protected] for any questions or corrections.*