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Credo launched a new set of chips and optical parts designed for 1.6T networking, which is the next major speed jump for data centers. These parts use a technology called 224G to move data twice as fast as the current standard, helping AI systems process massive amounts of information with less lag.
This launch is a key step in the company's plan to lead the next generation of networking. Because these chips are difficult to design and use less power than rivals, they should help the company win more business as giant tech firms upgrade their infrastructure for more complex AI tasks in 2027.
Source: Business Wire
Evercore ISI nudged its price target for the chipmaker down from $325 to $292 on Wednesday. This adjustment follows the company's latest financial results, where revenue more than doubled but the stock still saw a sharp drop in the days that followed. Even with the lower target, the firm's outlook is still much higher than the current price of about $174. The average target across all analysts who follow the stock now sits at $274, suggesting most still see significant room for the business to grow as data centers upgrade their networking hardware.
Source: Evercore ISI
Credo reported revenue of $479 million for the quarter, more than doubling its sales from the same time last year. The company earned $1.20 per share, slightly ahead of the $1.17 analysts expected. This growth shows that the company is successfully capturing the wave of spending on AI data centers, where its specialized chips and cables are used to move data between servers at high speeds.
The business is also becoming more efficient as it grows. Its gross margin, the profit left after paying for the actual parts and manufacturing, reached 68 percent on a non-GAAP basis. This suggests that even as it ramps up production, Credo is maintaining strong pricing power for its energy-efficient designs. With over $764 million in cash on hand, the company is well-funded to continue developing the next generation of networking products expected to launch next year.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Credo Technology Group Holding Ltd reports quarterly earnings TODAY (2026-09-01). The results are not out yet. Going in, analysts expect about $1.17 per share and revenue of about $0.47 billion. For context, the company has beaten expectations in 7 of its last 8 quarters. Write a SHORT heads-up for someone who owns the stock: that results land today, and the one or two things worth watching in them given what we have said about this business. Do not predict the outcome and do not tell anyone what to do.
Credo joined the Open CPX MSA, an organization that works on creating standard ways for different companies' networking parts to work together. Specifically, they are focusing on co-packaged optics, which is a way of putting light-based data connections directly next to a processor to save power and space. This is a minor but positive step for Credo. By helping set these industry standards, the company ensures its power-efficient chips remain at the center of how the next generation of AI data centers are built. It reinforces Credo's role as a key provider of the connectivity that makes massive AI clusters possible.
Source: Business Wire
Management consistently sets targets they can clear, but the business is currently outrunning even their own forecasts as profits grow faster than sales.
| Expectation | |
|---|---|
| EPS | $1.29 |
| Revenue | $532M |
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