Credo Technology Group

CRDO

Market cap $40.1B

Credo Technology Group Holding Ltd (CRDO) Presents at Bank of America 2026 Global Technology Conference Transcript

Credo Technology is rated buy, with a $295 price target and >37% upside, driven by robust growth and expanding optical offerings. Q4 revenues surged 157% YoY to $437M, with gross margin at 68.3% and non-GAAP operating margin at 49.6%, highlighting exceptional profitability. Customer concentration risk is moderating, with the top 3 customers now at 77% of revenue and neocloud clients expected to exceed 20% of the top line.

Credo Technology delivered 206% YoY revenue growth to $1.335B, driven by massive copper cable deployments for AI data center clusters. Growth is normalizing, with Q1 guidance at +7% QoQ; optics are expected to accelerate from H2 FY27, targeting $600M+ in FY27 optics revenue. Non-GAAP operating margin surged from 8.5% to 48%, but margin compression is expected as optics, a lower-margin business, becomes a larger revenue contributor.

Credo expects more than $600 million of optical revenue in FY2027, accelerating its transition beyond traditional AEC products. Fiscal 2026 revenue surged 206% to $1.34 billion while non-GAAP net income increased more than fivefold. Management guided for over 80% revenue growth in FY2027 while maintaining gross margins between 67% and 69%.

Following a breakout fiscal 2026 in which revenue more than tripled to $1.3 billion, Credo Technology Group Holding Ltd CRDO is positioning itself as a key beneficiary of the AI networking boom. As hyperscalers and cloud providers race to build larger AI clusters, optical networking is becoming an increasingly important part of the infrastructure stack.

Credo pivots from a Q4 beat to a fiscal 2027 optical inflection, with a second-half ramp that management says could reshape the revenue mix.

MU, CRDO and TER screened as profitable June stock picks, backed by strong net income ratios and robust earnings growth outlooks.

Credo Technology Group Holding Ltd. reported earnings after the close Monday. CREDO stock is falling as investors appear unimpressed. The company's copper and optical portfolio make it perfectly positioned for the next stage of AI capex.

Credo Technologies NASDAQ: CRDO stock price rally isn't over yet, not by a long shot. The fiscal Q4 2026 release and 2027 guidance suggest this stock can easily reach $300 and continue rallying from there.

Credo Technology Group Holding Ltd delivered a double beat in Q4 '26, with revenue up 157% year over year and profitability remaining exceptional. CRDO guided to over 80% revenue growth for FY27, driven by a second-half inflection in optical, with optical products expected to exceed $600 million in revenue. Customer concentration risk is improving, and gross margins remain strong, while inventory build signals confidence in future demand but adds execution risk.