Credo Technology rose about 7 percent today, its second straight day of gains, and is now trading at a new all-time high. We think this is mostly about growing demand for the specialized cables and chips needed to power AI data centers.
Our view
The company is seeing massive growth because its chips move data using far less power than rivals, which is a huge advantage as data centers get bigger. If you already own it, there is nothing to do here but sit tight and let that technical lead play out.
Energy firms expand pipelines to meet rising AI data center demand
Energy companies are spending billions to expand natural gas pipelines, specifically citing the massive power needs of new AI data centers. This infrastructure is necessary to keep those facilities running as they handle more complex AI tasks.
This is a positive sign for Credo because it shows the physical foundation for AI growth is still being built. Credo makes the specialized chips and cables that move data inside these centers. As more facilities get the power they need to open, demand for the high-speed connectivity Credo provides should continue to grow.
Analyst price updatePositive
Jul 21
Susquehanna raises its price target to $250
Susquehanna raised its price target for the company to $250. This follows a period of rapid growth where the business has become a key provider of the chips and cables used to move data in AI data centers. The analysts kept their positive rating on the stock, which suggests they still see room for the share price to rise from current levels.
Barclays raised its price target for the stock from $260 to $300 while keeping an overweight rating. This is a notable jump that reflects confidence in the company's technical lead in power-efficient chips. These chips are becoming essential as data centers upgrade to handle more complex AI workloads.
The new target is well above where the stock currently trades. It suggests that analysts believe the company's role in the next generation of high-speed networks will continue to drive its value higher.
Analysts have kept a steady stream of positive updates on the stock throughout the summer. Thirteen of 15 analysts rate it a buy, and the average price target of $274 suggests the stock has 10% room to grow.
Average target$274.18+10%vs $249.89 today
TodayAvg price
Low $200High $350
Strong Buy15 analysts
0Bearish
2Neutral
13Bullish
FirmRatingPrice TargetDate
Susquehanna
Positive
$235→$250
7/21/2026
Barclays
Overweight
$260→$300
7/20/2026
Stifel Nicolaus
Buy
$250→$350
6/22/2026
Evercore ISI
Outperform
$325
6/22/2026
Mizuho Securities
Outperform
$260→$290
6/2/2026
Susquehanna
Positive
$200→$235
6/2/2026
Goldman Sachs
Buy
$170→$250
6/2/2026
Needham
Buy
$275
6/2/2026
Jefferies
Buy
$225→$270
6/2/2026
Roth Capital
Buy
$200→$300
6/2/2026
Mizuho Securities
Outperform
$220→$260
6/1/2026
Stifel Nicolaus
Buy
$250
5/27/2026
Credo Technology earnings
The company has beaten expectations for seven straight quarters while more than doubling its revenue. Management consistently sets a bar that the business then outruns as AI adoption scales.
Earnings history
EstimateBeatMiss
Credo Technology past earnings results
Expected
Actual
Surprise
EPS
$1.02
$1.16
+13.7%
Revenue
$432M
$437M
+1.2%
Key highlights
Revenue growth accelerating: Quarterly revenue jumped 157.0% to $437.0 million compared to the same period last year, which shows the business is scaling up rapidly to meet demand for high speed data connectivity.
Annual profitability surge: For the full fiscal year, adjusted net income increased more than five times to $662 million, and the company nearly tripled its total annual revenue to $1.3 billion.
Healthy profit margins: The adjusted gross margin, which is the percentage of sales left after paying for the direct costs of making products, reached 68.3% this quarter, up from 67.4% a year ago.
Strong cash position: The company ended the year with $1.4 billion in cash and short term investments, providing a significant cushion as they prepare for the launch of next generation 1.6T chips in 2027.
Upward revenue guidance: Management expects next quarter revenue to be between $465.0 million and $475.0 million, which would represent another step up from the $437.0 million reported this quarter.
Our take: A very strong quarter that shows the company is successfully capturing the massive demand for AI infrastructure. The fact that annual profit grew five times faster than the previous year is impressive, and it reinforces our view that their technology is becoming essential for modern data centers. This performance strengthens the long term case for the business.
Credo Technology’s next earnings date
Q1 2027
SEP
2
Expectation
EPS
$1.16
Revenue
$470M
Metrics we are tracking
Metric
Expectations
Status
AEC Adoption Rate
Revenue from Active Electrical Cables growing faster than 50% YoY
157% YoY in FY2026
Gross Margin
Staying above 65% on a trailing-twelve-month basis
68.2% in Q4 FY2026
1.6T Sampling Progress
Delivering initial 1.6T chip samples to customers by mid-2027
On track for FY2027
Customer Concentration
Revenue from top customer dropping below 30% of total
Still highly concentrated as of FY2026
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