New York, Jan 11, 2026, 12:26 EST — The market has closed.
Credo Technology Group Holding shares climbed 6.2% on Friday, closing at $150.42. The boost came after a Needham analyst labeled the AI data-center connectivity company a “Top Pick” for 2026. With U.S. markets closed over the weekend, investors will carry that momentum into Monday’s session as inflation figures loom.
Timing is key. The AI trade has been bouncing between “buy the pipes” and “trim the multiple.” The next few sessions bring key triggers that usually move high-growth stocks first: big bank earnings and December CPI. Investors remain cautious, still sorting through last year’s government shutdown that delayed or canceled some economic data. “All the inflation numbers are going to be critical,” said Nanette Abuhoff Jacobson, global investment strategist at Hartford Funds. (Reuters)
Shares tied to chips powered much of the gains into the weekend. The S&P 500 ended Friday at a record, while the PHLX semiconductor index also hit a new high. Investors appeared to be breaking the AI theme into more specific trades instead of placing one broad wager. “Investors are getting granular and picking the winners and losers,” said Zachary Hill, head of portfolio management at Horizon Investments. (Reuters)
Needham’s N. Quinn Bolton stuck with a Buy rating and set a $220 price target on Credo, Barron’s reported Friday. The stock surged as much as 11% in early trading. Bolton highlighted Credo’s Active Electrical Cable (AEC) products — copper cables embedded with electronics that connect AI servers to networking switches — and growing traction among “hyperscalers,” the biggest cloud data center operators. “We encourage investors to Buy Credo on recent weakness,” he said. (Barron’s)
A separate note from Bolton bumped Credo onto Needham’s Conviction List, arguing the stock could see a higher valuation if product ramps and demand from big cloud customers materialize. The report forecasts fiscal 2028 non-GAAP earnings per share above $5; “non-GAAP” here refers to an adjusted profit metric that excludes certain items. (TipRanks)
Big AI names wrapped up Friday on a mixed note. Nvidia edged down 0.1% to $184.86, and AMD dropped 0.7% to $203.17. Broadcom, however, rose 3.7% to $344.97. When these mega-caps shift, smaller plays like Credo often feel the ripple, especially with heavy positioning ahead of key macro data this week.
Tuesday’s lineup features the December Consumer Price Index, set for release at 8:30 a.m. ET. Then on Wednesday, the Producer Price Index follows, also at 8:30 a.m. ET, per the Labor Department’s calendar. Separately, the Bureau of Economic Analysis announced it will rely on average CPI figures to gauge October PCE inflation after the shutdown disrupted data gathering. The delayed October and November PCE inflation reports are now scheduled for Jan. 22. (Bureau of Labor Statistics)
The risk for AI stocks is clear and straightforward: a hotter-than-expected CPI could push bond yields higher, squeezing the lofty forward multiples investors assign to growth. On the company front, Credo must still demonstrate that its adoption curve holds up — AECs and newer connectivity products need to hit volume shipments, and competitors won’t stay idle in a rapidly expanding AI networking space.
Credo has a key event lined up on Wednesday. The company will present at the 28th Annual Needham Growth Conference in New York City on Jan. 14 at 9:30 a.m. ET. Investors will be keenly watching for any news on customer demand and product rollouts. (Credo Technology Group)
Next up is the supply chain spotlight. Taiwan Semiconductor Manufacturing Co is set to release full Q4 earnings on Jan. 15. Investors will watch closely for updated guidance, especially on capital spending, a crucial indicator of AI chip demand. (Reuters)
