Quick Read – Credo Technology (CRDO) reported Q3 FY2026 revenue of $407.01M, beating consensus by 5%, with non-GAAP EPS of $1.07 and operating margin of 49.6%, but guided Q4 gross margin at 64-66% versus Q3’s 68.6% and inventory ballooned to $207.9M amid insider selling. -…
edo’s 201.5% YoY revenue growth and three new multi-billion-dollar TAM expansions through ZeroFlap optics, ALCs, and OmniConnect position it for sustained hyperscaler AI infrastructure demand, though a 94x P/E and 3.18 beta expose the stock to multiple compression if capex cycles weaken. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Credo Technology Group wasn’t one of them. Get them here FREE
I’m initiating coverage on Credo Technology (NASDAQ:CRDO) after one of the wildest weeks in the AI connectivity trade. Shares fell 25.66% over the past five sessions, yet the stock is still up 159.89% over the past year. With Q3 FY2026 revenue growing 201.5% YoY and three new multi-billion-dollar TAM expansions on the table, the question is whether the recent selloff is a gift or a warning.
Our model points to a modest reset. Our 24/7 Wall St. price target for Credo is $164.60, implying 5.33% upside from the current $156.27. The recommendation is buy with high confidence of 90%, reflecting strong analyst alignment and durable AI infrastructure demand offset by extreme valuation.