Credo Technology Group (CRDO) Stock: AI Connectivity High‑Flyer Heads Into Q2 2026 Earnings at Near‑Record Levels

Current as of December 1, 2025

Quick Summary

Business: Fabless semiconductor company focused on high‑speed connectivity chips and cables for AI data centers and cloud infrastructure. ^[1]
Share price: Around $175–$180 intraday on December 1, 2025, after a powerful rally of roughly 250–270% over the past 12 months. ^[2]
Valuation: Trades at roughly 260x trailing earnings and a forward P/E in the 80s, with a price‑to‑sales multiple near 29x – among the richest in semis. ^[3]
Catalyst today (Dec 1, 2025):Q2 FY 2026 earnings report after the close and conference call at 2:00 p.m. PT / 5:00 p.m. ET. ^[4]
Street expectations: Consensus Q2 revenue around $235 million and EPS near $0.49, following a blowout Q1. Longer‑term estimates for FY 2026–2027 have been revised sharply higher over the last 90 days. ^[5]

What Credo Technology Group Actually Does

Credo Technology Group Holding Ltd (NASDAQ: CRDO) is a fabless chip designer building the “plumbing” that lets AI servers and switches talk to each other at extreme speeds while keeping power in check.

The company’s portfolio spans:

HiWire® Active Electrical Cables (AECs): Copper‑based cables with embedded chips that replace short‑reach optical links in AI clusters and data centers.
Optical DSPs (Digital Signal Processors): Chips that sit inside optical modules and clean up high‑speed signals at 400G, 800G and emerging 1.6T port speeds. ^[6]
Line‑card PHYs and SerDes chiplets: Building blocks that equipment makers integrate into switches, NICs and custom silicon.
SerDes IP licensing: Credo also licenses its high‑speed SerDes designs to third parties, although this revenue line has historically been more volatile. ^[7]

Recent product and technology highlights include:

BlueBird 1.6T optical DSP: A low‑power DSP designed for 1.6Tbps transceivers, targeting dense AI and hyperscale data centers where power and cooling are critical constraints. ^[8]
ZeroFlap optical transceivers: A new optical platform aimed at eliminating “link flaps” – those annoying connect/disconnect events that destabilize AI back‑end networks. ^[9]
AI‑focused trade‑show presence: Credo has been showcasing its optical AI connectivity solutions at ECOC 2025 and the OCP Global Summit, underscoring a deliberate push into AI infrastructure. ^[10]

In short, Credo isn’t an AI model company; it’s one of the hardware names trying to become the default wiring and signal‑integrity layer of AI data centers.

CRDO Stock Today: Price, Momentum and Valuation

Share price and performance

As midday trading progresses on December 1, 2025, CRDO is changing hands in the high‑$170s per share, with an intraday range roughly in the low‑$170s to low‑$180s. ^[11]

Over the last year:

52‑week range:$29.09 – $193.50
52‑week gain: roughly +250–270%, depending on the data provider. ^[12]
The stock touched its 52‑week high of $193.50 on October 31, 2025, and its low of $29.09 on April 7, 2025. ^[13]

That kind of move has propelled CRDO firmly into “AI winner” territory on many momentum screens. ^[14]

Market cap and headline metrics

Depending on the source and exact timestamp, CRDO’s market capitalization currently sits around $30–31 billion. ^[15]

Trailing 12‑month financials and valuation: ^[16]

Revenue (ttm): ~$600 million
Net income (ttm): ~$125 million (net margin ≈ 21%)
EPS (ttm): about $0.67–$0.69
Trailing P/E: around 260x
Forward P/E: low‑to‑mid 80s
Price‑to‑sales (forward 12‑month): roughly high‑20s, versus single‑digit multiples for the broader semiconductor group. ^[17]
Beta: ~2.6 – historically more volatile than the broader market. ^[18]

Put bluntly, the market is pricing Credo like a hyper‑growth AI infrastructure pure play. Any wobble in growth or margins will matter.

Q1 FY 2026: The Blowout Quarter That Set Expectations

Credo’s current run really accelerated after its fiscal Q1 2026 print on September 3, 2025.

Across multiple outlets, the numbers paint the same picture: ^[19]

Revenue: about $223 million, versus consensus near $191 million – up roughly 270%+ year‑on‑year.
Adjusted EPS: around $0.52, smashing expectations of roughly $0.36.
GAAP EPS: about $0.34, slightly under some estimates, but still a massive jump from about $0.04 a year earlier.
Margins: non‑GAAP gross margin was reported in the high‑60s, while GAAP net margin was about 20.9%—very strong for a young, fast‑growing chip company. ^[20]

Management also issued bullish guidance for Q2 FY 2026, signalling: ^[21]

Revenue:$230–$240 million
GAAP gross margin:63.5–65.5%
Operating expenses:$96–$98 million

This guidance implied continued triple‑digit year‑on‑year growth, and it’s a big reason the stock rerated so sharply into the fall.

Today’s Catalyst: Q2 FY 2026 Earnings (December 1, 2025)

When and what

Credo will report its fiscal Q2 2026 results after the market closes on December 1, 2025, covering the quarter ended November 1, 2025. The conference call starts at 2:00 p.m. Pacific (5:00 p.m. Eastern). ^[22]

MarketBeat’s earnings dashboard and other aggregators list: ^[23]

Consensus Q2 EPS: about $0.49
Consensus Q2 revenue: roughly $235 million

As of this writing, actual Q2 results aren’t yet posted on major earnings trackers; the event is still marked as “upcoming,” with EPS and revenue fields showing “N/A” for actuals. ^[24]

Recent price action into the print

Investors have been front‑running the event:

On November 28, CRDO jumped 8.3–8.4% to close around $177.60, extending a four‑session winning streak as traders positioned ahead of earnings. ^[25]
A fresh MarketBeat note on December 1 highlighted that Wealthedge Investment Advisors LLC opened a new position worth about $828,000, and that institutional ownership now sits around 80%+ of the float. ^[26]

Short‑term, all eyes are on whether Credo can beat elevated expectations again and how aggressively management guides for the back half of fiscal 2026.

The Latest News Flow (Late November – December 1, 2025)

Here’s what’s been moving the story in the days leading up to the Q2 print.

1. Fresh licensing deal with The Siemon Company

On November 24, 2025, Credo announced it had licensed its Active Electrical Cable (AEC) patents to The Siemon Company, a global maker of data‑center and enterprise cabling systems. ^[27]

Why it matters:

Validates Credo’s AEC technology as a de‑facto standard beyond its own branded cables.
Opens a royalty and partnership avenue that could extend AEC penetration into data‑center infrastructure built by third‑party cable vendors.
Reinforces the view of Credo as an IP powerhouse, not just a single‑product hardware vendor.

Details of the licensing economics are not public, but the deal is directionally bullish for IP monetisation and ecosystem reach.

2. Q2 earnings call officially scheduled

The November 12 press release from Credo’s investor relations team formally set today’s call: Q2 FY 2026 results after the close and a conference call at 2:00 p.m. Pacific. ^[28]

The release reiterated Credo’s mission statement: to “redefine high‑speed connectivity” for AI, cloud and hyperscale networks, and noted that its product portfolio targets port speeds from 100G to 1.6T. ^[29]

3. “Strong financial prospects” underpin momentum

A late‑November analysis on Yahoo Finance’s UK edition pointed out that Credo’s shares had risen about 44% in the prior month, attributing the surge largely to improving fundamentals and upgraded expectations rather than pure speculation. ^[30]

The piece flagged:

Massive revenue growth.
Improving profitability.
Persistently high valuation multiples that require continued execution.

4. Earnings‑preview coverage and estimate revisions

In the last week of November, several outlets (Benzinga, Yahoo Finance, GuruFocus, MarketBeat and others) published Q2 2026 preview notes: ^[31]

Key themes:

Estimates moving up: Over the past 90 days, Wall Street’s consensus for FY 2026 revenue has climbed from around $815 million to about $972 million, and FY 2027 revenue from roughly $1.01 billion to $1.25 billion. EPS forecasts rose from $0.91 to $1.32 for FY 2026 and $1.27 to $1.78 for FY 2027. ^[32]
Optical business momentum: Zacks/Nasdaq analysis highlighted Credo’s plan to roughly double optical revenue in FY 2026, projecting about 120% year‑on‑year growth for the company overall, with non‑GAAP net margins around 40%. ^[33]
Guidance confidence: Commentary generally notes that Credo’s own Q2 guidance is already above prior Street estimates, so the bar is high.

5. Analyst rating actions and price targets

Recent research updates include: ^[34]

Susquehanna: “Positive” rating; price target lifted from $165 to $175 in late October.
Mizuho: “Outperform”; PT raised from $135 to $155 in September.
Barclays: “Overweight” with a $165 target.
JPMorgan: Initiated coverage with an “Overweight” rating and $165 price target.
William Blair: Initiated “Outperform” coverage.

Aggregated views differ slightly by provider:

MarketBeat: Average target near $140, overall rating “Moderate Buy” (mix of Buy and Hold). ^[35]
StockAnalysis / TipRanks data: Average target about $133–134, with a “Strong Buy” consensus from around 12–13 analysts; target range $75–$175. ^[36]
MarketWatch: Average target about $170, with an average recommendation of “Buy” based on roughly 14 ratings. ^[37]
TickerNerd: Median target around $165 (range $72–$212), again with a bullish consensus, though the median implies a small downside from today’s price. ^[38]

Taken together, analysts broadly like the business, but many of their official 12‑month targets lag the stock’s latest rally—a sign that price has run ahead of prior models.

AI Infrastructure Tailwind: Why Investors Care About CRDO

Even without full access to some paywalled content, public snippets from Barron’s, IBD and CNBC, plus Credo’s own materials, sketch a consistent bullish narrative: ^[39]

Explosive growth: Fiscal Q1 2026 revenue grew about 274% year‑on‑year, and guidance points to another 200%+ year‑on‑year jump in Q2.
Market position: Credo is widely described as a top player in Active Electrical Cables (AECs) used to connect GPUs inside AI training clusters. Some reports peg its AEC share at around three‑quarters of the market.
Blue‑chip customers: Major hyperscalers – including Amazon, Microsoft and xAI – have been cited as key customers for Credo’s connectivity products.
Product economics: Credo’s AI‑oriented cables can cost a few hundred dollars each, and large GPU clusters use huge numbers of them, creating a high‑value, high‑volume recurring hardware opportunity.

In other words, when investors look for “picks and shovels” plays on AI data‑center build‑outs that aren’t GPU vendors, CRDO is now on many shortlists.

Valuation, Competition and Key Risks

The bull story is compelling—but so is the list of things that could go wrong.

1. Rich valuation and elevated expectations

Based on trailing numbers, CRDO trades at roughly: ^[40]

~260x TTM earnings
High‑20s times forward sales
Low‑80s forward P/E

Zacks’ analysis notes that CRDO’s forward price‑to‑sales multiple (near 29x) is roughly triple the sector average, underlining how much growth is already priced in. ^[41]

If Credo “only” grows at very high double digits instead of 120%+ or if margins compress, multiple compression alone could hurt the stock, even with decent fundamentals.

2. Competition from Marvell and Broadcom

Credo operates in a knife‑fight segment of the semiconductor market. Zacks’ September report (via Nasdaq) explicitly calls out: ^[42]

Marvell Technology (MRVL): Shipping 1.6T 200G‑per‑lane optical DSPs at scale and pushing into 400G‑per‑lane technology.
Broadcom (AVGO): Leveraging its scale, deeply entrenched PAM4 DSP portfolio and co‑packaged optics (CPO) roadmap for next‑gen AI data centers.

Both rivals have massive R&D budgets, long customer relationships and broader product lines, which could pressure Credo’s pricing or share in optical DSPs over time.

3. Customer concentration and AI spending cycles

Like many AI‑infrastructure beneficiaries, Credo is heavily exposed to hyperscaler and large cloud‑provider capex cycles. If AI build‑out plans moderate or customers shift architectures, orders for AECs and optical DSPs could become lumpy. ^[43]

4. Insider selling and institutional activity

MarketBeat’s institutional‑ownership pieces highlight that: ^[44]

Institutions collectively own around 80% of the float, with numerous funds increasing positions in 2025.
Over the last few months, insiders have sold close to 1 million shares (roughly $149 million in value), though they still own about 12% of the company.

Some insider selling is normal after a huge rally, but it does add a psychological overhang if growth ever slows.

What to Watch in Today’s Q2 2026 Earnings Call

For investors tracking CRDO on December 1, here are the key swing factors to watch when results hit and management takes questions.

Revenue and EPS vs. guidance/consensus
- Does revenue land above the $230–$240M guidance range?
- Is EPS materially better than the roughly $0.49 consensus?
Gross margin trajectory
- Management guided for 63.5–65.5% GAAP gross margin. Any move above the top end strengthens the margin story; a drop would raise questions about pricing or mix. ^[45]
Optical vs. copper mix
- Investors will want detail on optical DSP growth vs. AEC growth and whether optical revenue remains on track to double in FY 2026. ^[46]
Updated FY 2026 guidance
- Do they reaffirm or raise the informal view of ~120% year‑on‑year revenue growth and ~40% non‑GAAP net margins? ^[47]
Commentary on demand from top customers
- Any colour on ordering patterns from major hyperscalers (and from newer relationships, such as Arm‑related design wins or Siemon’s AEC licensing) will be crucial. ^[48]
Roadmap updates: BlueBird, ZeroFlap and new products
- Investors will look for signs that BlueBird 1.6T DSP and ZeroFlap transceivers are gaining real, not just demo‑floor, traction. ^[49]
Capital allocation and M&A
- Credo has been active on strategic moves (e.g., acquiring Hyperlume for microLED tech and joining Arm Total Design), so any hints about further deals or share issuance will matter. ^[50]

How Forecasters and Commentators Currently See CRDO

Putting the forecasts and commentaries together:

Wall Street models now assume near‑triple‑digit growth for the next couple of years, with FY 2026–2027 revenue and EPS estimates moving up significantly over the last quarter. ^[51]
Quantitative and factor screens on several platforms flag CRDO as a high‑momentum, high‑growth, high‑valuation name—often showing up in AI‑themed or “next Nvidia‑style” lists. ^[52]
Narrative research (Seeking Alpha, Zacks, Barron’s, IBD and others) has gradually shifted from “interesting but expensive” to “critical AI infrastructure player,” though some authors remain cautious about valuation and cyclicality. ^[53]

The consensus, simplified:

Business: excellent. Growth: exceptional. Valuation: demanding. Volatility: high.

For traders, that’s a recipe for big post‑earnings moves in either direction.

Bottom Line: Is CRDO Stock a Buy, Sell or Hold Right Now?

Whether CRDO is a “buy” at current levels depends heavily on your risk tolerance and time horizon:

If you believe AI data‑center build‑outs will remain aggressive for several years and that Credo can maintain leadership in AECs while scaling optical DSP and new products, the company’s fundamentals support a strong growth narrative.
On the other hand, a stock at ~260x trailing earnings and ~30x sales leaves very little room for disappointment. Even a modest slowdown or margin compression could trigger a sharp rerating, particularly after a 250%+ 12‑month run. ^[54]

For now, many professional analysts officially rate CRDO as Buy/Strong Buy, but with average 12‑month price targets below today’s price, signalling that upside in the near term may be more about continued estimate upgrades and surprise beats than multiple expansion. ^[55]

Important notice

This article is for informational and educational purposes only and is not investment advice. It does not take into account your individual objectives, financial situation or needs. Always do your own research and consider seeking independent financial advice before making investment decisions.

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