New York, Jan 21, 2026, 21:14 EST — The market has closed.
- Credo shares dipped 9.2%, closing at $139.16, after hitting a low of $134.40 during the day.
- A Form 4 revealed that a trust tied to Credo’s CTO offloaded 30,000 shares following a pre-arranged plan.
- Rosenblatt kicked off coverage with a Neutral rating and set a $170 price target, highlighting concerns over durability risks.
Shares of Credo Technology Group Holding Ltd tumbled 9.2% to $139.16 on Wednesday, pushing the company’s market value down to roughly $32.5 billion. The stock hit a low of $134.40 during a volatile session.
The decline was notable as chip stocks generally climbed, with the VanEck Semiconductor ETF gaining roughly 3% that day.
Rosenblatt initiated coverage of Credo with a Neutral rating and a $170 price target, noting the company’s near-term growth appears solid but is already priced in amid rising long-term risks. The firm pointed out that Credo’s edge in copper cables might wane as data centers shift toward higher speeds and longer distances, where optical links typically gain ground. (Investing)
In a separate SEC filing signed on Jan. 20, sales linked to CTO and director Cheng Chi Fung came to light. The document showed the Cheng Huang Family Trust offloading 30,000 shares on Jan. 15, at weighted-average prices ranging from about $149 to $165. These transactions were conducted under a Rule 10b5-1 plan established on Sept. 5, 2025. (SEC)
Rule 10b5-1 plans let insiders set up trading schedules in advance. While they can ease legal concerns and avoid the appearance of trading on inside info, hefty sales still catch the eye, especially after a sharp stock rally.
Rosenblatt analyst Mike Genovese kicked off coverage with a Neutral rating and a $170 price target, Benzinga reported. The research note warned that “additional competition is imminent,” TheFly said. (Benzinga)
Credo’s battle hinges on how long copper-based active electrical cables remain the standard in AI data centers. If customers switch to optical connections sooner than anticipated, both pricing power and growth rates could shift rapidly.
Another straightforward risk: stocks that surge on growth narratives can just as quickly reverse. Insider sales, even those on autopilot via preset plans, might weigh heavier if additional filings emerge or if analysts ramp up skepticism around the company’s staying power.
Traders will be monitoring if the stock holds steady following Wednesday’s steep drop and if additional broker reports emerge on Thursday. The next key event on the calendar is the company’s earnings release, expected around March 3, 2026, according to Nasdaq. (Nasdaq)
New details on Credo’s extended roadmap, particularly around optical tech, might change the narrative. Insider-trading filings could also add a new dimension.
