Credo Technology Group (CRDO) Stock Soars on Record AI Earnings: Latest News, Analyst Forecasts & Outlook as of December 3, 2025

Credo Technology Group Holding Ltd (NASDAQ: CRDO) has become one of 2025’s standout AI infrastructure plays. After a blowout fiscal Q2 2026 report and a wave of analyst upgrades, the stock is trading around $183 per share on December 3, 2025, having surged well into triple‑digit gains for the year. ^[1]

This article pulls together all the key news, earnings details, analyst forecasts and fresh risk analyses published around December 3, 2025, to give you a Google‑News‑ready overview of where CRDO stands right now.

Key Takeaways on Credo Technology Group Stock (CRDO)

• Stock price today: Around $183–184, down slightly on the day after a big post‑earnings spike, with a market cap of about $32–33 billion and a trailing P/E above 150x. ^[2]
• 2025 performance: Shares are up roughly 180% year‑to‑date, making Credo one of the year’s hottest AI‑adjacent stocks. ^[3]
• Blowout earnings: Fiscal Q2 2026 revenue hit $268 million, up ~20% sequentially and about 272% year‑over‑year, with a 67.7% non‑GAAP gross margin and record profitability. ^[4]
• Aggressive guidance: Credo guides Q3 FY26 revenue to $335–345 million (roughly 25–30% sequential growth) and expects >170% revenue growth for FY26 with non‑GAAP net margin around 45%. ^[5]
• Street outlook: Multiple firms have lifted targets into the $220–$250 range (Roth/MKM, Bank of America, Susquehanna, Stifel), while aggregated 12‑month price targets cluster around $190–$230 with Buy/Strong Buy consensus. ^[6]
• Core thesis: Credo is positioned as a high‑speed connectivity supplier for AI data centers, with especially strong growth in Active Electrical Cables (AECs) and high‑speed ICs, plus new product families like ZeroFlap optics, Active LED Cables (ALCs) and OmniConnect gearboxes targeting multibillion‑dollar markets. ^[7]
• Key risks: Extremely rich valuation, customer concentration (top customer ~42% of sales; top four >90%), supply‑chain constraints at advanced nodes, a heavy R&D and opex ramp, and the possibility that AI‑driven demand “normalizes” after the current super‑cycle. ^[8]

Credo Technology Stock Price Snapshot – December 3, 2025

As of late trading on December 3, 2025, Credo Technology Group shares trade around $183.47, down about 2.6% on the day after a sharp post‑earnings rally. The stock has traded between roughly $176 and $193 intraday, with a market capitalization near $32.5 billion, a trailing EPS of about $1.16, and a P/E multiple around 150x–165x depending on the data source. ^[9]

Over the past year, CRDO has moved from the low‑20s to a 52‑week high above $210, reflecting the market’s enthusiasm for its role in AI data‑center buildouts. ^[10] MarketWatch notes that the stock is up about 180% in 2025, after a ~10% jump on Tuesday following earnings. ^[11]

Several outlets, including Quiver Quantitative and Finviz, report that the post‑earnings spike at one point reached mid‑teens percentage gains intraday, with shares briefly trading just below $200. ^[12]

Record Fiscal Q2 2026 Earnings: AI Infrastructure Demand in Overdrive

Credo’s latest fiscal Q2 2026 (quarter ended November 1, 2025) results are the main catalyst behind the recent move.

Headline numbers

According to the company’s earnings release and call recap:

• Revenue:$268 million, up about 20% quarter‑over‑quarter and roughly 272% year‑over‑year. ^[13]
• Product sales: For the first six months of FY26, product revenue jumped from about $126 million to $478 million versus the prior year period. ^[14]
• IP licensing: Licensing revenue roughly doubled in the same six‑month period, from about $5.3 million to $12.7 million. ^[15]
• Margins: Non‑GAAP gross margin came in around 67.7%, up from the low‑60s a year earlier, with non‑GAAP net margin approaching high‑40s in the quarter. ^[16]
• Profitability: GAAP net income swung from a loss last year to about $82.6 million this quarter; non‑GAAP net income reached roughly $128 million, marking the strongest profitability in the company’s history. ^[17]
• Balance sheet: Credo closed the quarter with more than $800 million in cash and short‑term investments, giving it ample capital to support R&D and capacity commitments. ^[18]

MarketBeat described the quarter as a “blowout,” highlighting 272% revenue growth, expanding margins at both gross and operating levels and a non‑GAAP net margin approaching 48%. ^[19]

Where the growth is coming from

Analyses from TipRanks, MarketBeat and Zacks/Nasdaq paint a consistent picture of what’s driving those numbers: ^[20]

• Active Electrical Cables (AECs) remain the fastest‑growing product line, used to connect racks inside AI and cloud data centers.
• The Integrated Circuit (IC) business — including retimers and optical DSPs — is also growing rapidly as hyperscale customers build out next‑generation networking fabrics.
• Credo has now introduced three new product “pillars” beyond its core AEC line:
  • ZeroFlap optics
  • Active LED Cables (ALCs)
  • OmniConnect gearboxes

TipRanks notes that management views these newer categories as multibillion‑dollar market opportunities, expanding Credo’s total addressable market and diversifying its revenue base. ^[21]

Big “Beat and Raise” Guidance: What Credo Expects Next

The forward guidance has arguably excited Wall Street even more than the historical results.

Q3 FY26 outlook

For the third quarter of fiscal 2026, Credo guided to: ^[22]

• Revenue:$335–345 million, implying roughly 25–30% sequential growth and significantly above prior consensus estimates around $247 million.
• Non‑GAAP gross margin:64–66%.
• Non‑GAAP operating expenses:$68–72 million, reflecting heavier investment in projects and hiring.

Zacks, via Nasdaq, emphasizes that the top four customers are expected to remain above 10% of revenue and collectively represent more than 90% of sales, with a fifth hyperscaler just starting to contribute meaningfully. ^[23]

Full‑year FY26 ambitions

TipRanks’ call summary and Investing.com’s analyst‑rating coverage highlight Credo’s very aggressive full‑year targets: ^[24]

• FY26 revenue: projected to grow more than 170% year‑over‑year.
• Non‑GAAP net margin: targeted around 45%, with net income expected to more than quadruple versus FY25.
• Management also talked about visibility into ramp‑ups from a broader hyperscaler base, particularly as AI‑capable clusters scale and new AEC and optical interconnect programs move into volume production. ^[25]

This combination of hyper‑growth plus high margins is what underpins the Street’s increasingly bullish price targets — and also fuels concerns that expectations may be getting “priced for perfection.”

Wall Street’s Latest CRDO Stock Forecasts and Price Targets

A wave of analyst updates has hit the tape since earnings. Here’s a consolidated view from several sources as of December 3, 2025.

Major target hikes

• Roth/MKM – $250 target, Buy:
  Roth/MKM raised its CRDO price target from $170 to $250 while reiterating a Buy rating, citing a broadening customer base and guidance that massively tops consensus. The firm points to strong hyperscaler adoption, a robust 66% gross margin and new product families (ZeroFlap optics, ALCs, OmniConnect, PCIe retimers) as drivers of multiyear growth. ^[26]
• Bank of America – $240 target, Buy:
  Bank of America boosted its target from $165 to $240, keeping a Buy rating and flagging roughly 40% upside from the pre‑upgrade price around $171. ^[27]
• Barclays – $220 target, Overweight:
  Barclays increased its objective from $165 to $220 with an Overweight rating, reflecting stronger growth assumptions post‑earnings. ^[28]
• Susquehanna – $230 target, Positive:
  Quiver Quantitative reports that Susquehanna raised its target to $230, framing the quarter as another “remarkable” beat‑and‑raise driven by surging AEC demand and new AI interconnect products. ^[29]
• Stifel – $225 target, Buy:
  The same Quiver note highlights Stifel reiterating a Buy rating with a $225 price target after the results. ^[30]

Consensus view and rating distribution

Different data aggregators show slightly different snapshots, but all broadly point in the same direction:

• MarketBeat:
  • Classifies Credo as a “Moderate Buy” with 1 Strong Buy, 14 Buy and 2 Hold ratings.
  • Lists a consensus price target around $191 (based on a larger universe of analysts, some of whose numbers may lag recent upgrades). ^[31]
• eToro analyst composite:
  • Based on 8 recent analyst recommendations, eToro lists a “Strong Buy” consensus rating.
  • Shows an average 12‑month price target of about $230. ^[32]
• Fintel / Needham coverage:
  • Needham maintained a Buy rating on December 2.
  • Fintel reports an earlier (November 17) average one‑year target of $167.38 with a range of $136–$199, which implied mild downside from then‑current levels — a reminder that older targets haven’t fully caught up with the latest price move and upgrades. ^[33]

Taken together, recent updates cluster between $220 and $250, while “all‑in” consensus data that include older estimates sit a bit lower in the high‑100s to low‑200s. With the stock currently around $183, that implies anywhere from modest to substantial upside, depending on which data set you trust and how aggressively you believe current growth can be sustained. ^[34]

Fresh Fundamental Analysis: What the Latest Research Says

Beyond price targets, several in‑depth analyses published around December 2–3 help frame the CRDO bull case and its risks.

TipRanks: Record earnings, new growth pillars, but rising opex

A detailed TipRanks recap of Credo’s earnings call emphasizes: ^[35]

• Record $268M revenue, up 20% sequentially and 272% year‑over‑year.
• Non‑GAAP gross margin at 67.7% and non‑GAAP net income of about $128M.
• AECs as the fastest‑growing segment, with ICs (retimers, optical DSPs) also delivering strong growth.
• Introduction of ZeroFlap optics, ALCs and OmniConnect gearboxes as new growth pillars, expanding the addressable market into multi‑billion‑dollar territory.
• A fifth hyperscaler entering the revenue mix and strong customer forecasts across existing hyperscalers.
• Two key challenges:
  • Potential supply constraints at advanced wafer nodes.
  • A planned spike in non‑GAAP opex in Q3 due to ramping projects and hiring, which could temporarily pressure margins even as revenue accelerates.

GuruFocus: Strategic SWOT and Hyperlume acquisition

A new GuruFocus “Strategic SWOT Insight” based on Credo’s latest 10‑Q filing highlights: ^[36]

• For the six months ended November 1, 2025, product sales grew from about $126M to $478M, and IP licensing revenue from $5.3M to $12.7M.
• Net income swung from a loss of around $13.8M to a profit of about $146M, with gross margin improving from ~62.8% to ~67.5%.
• The company is investing heavily in R&D to maintain its technological edge, which is both a strength (innovation) and a risk (high ongoing expense).
• A strategic acquisition of Hyperlume strengthened Credo’s IP portfolio and extended its reach in high‑speed connectivity.
• Persistent customer concentration, with a small number of large hyperscalers driving the bulk of revenue, is flagged as a key risk.

MarketWatch: One of 2025’s hottest AI stocks

A widely shared MarketWatch piece describes Credo as “one of the year’s hottest AI stocks,” noting: ^[37]

• Shares are up about 180% in 2025 and jumped ~10% on Tuesday after earnings.
• Revenue nearly quadrupled year‑over‑year, with adjusted gross margin at 67.7%.
• Credo’s largest customer (suspected to be Amazon) accounted for about 42% of sales, but four customers now contribute at least 10% each, suggesting widening adoption.
• Analysts see meaningful opportunity beyond AECs in AI interconnect products, with management suggesting a path to $5 billion in revenue within a $10 billion TAM over the next several years.
• The stock has been flagged as a potential short‑squeeze candidate in the broader context of AI‑linked names that can rally 20–30% in a matter of days.

Zacks/Nasdaq: Expanding hyperscaler base

A Zacks note published on Nasdaq under the title “Will CRDO’s Expanding Hyperscaler Base Accelerate Growth Momentum?” focuses on: ^[38]

• A rapidly growing hyperscaler customer base, including a new customer contributing at least 10% of revenue.
• Q3 revenue guidance implying roughly 27% sequential growth, well above Street estimates.
• Expectations that FY26 revenue will grow about 170%, with high gross margins around mid‑60s.

QuiverQuant: Congressional trade & sentiment

Quiver Quantitative’s write‑up on Rep. Robert Bresnahan’s Credo trade notes that: ^[39]

• CRDO jumped about 16% in pre‑market trading after the earnings release.
• The congressman’s disclosed position is up roughly 169% since it was first flagged.
• The article reiterates the core earnings beat (EPS $0.67 vs $0.49 expected, revenue $268M vs ~$235M expected) and cites target hikes from Susquehanna ($230) and Stifel ($225).

Valuation pushback: Forward P/E & “supercycle” worries

Not all commentary is unreservedly bullish:

• A Seeking Alpha article (access‑restricted but summarized in search snippets) argues that even with upgraded FY26 guidance and a forecast for 170%+ revenue growth, Credo trades at a forward P/E above 56x, well ahead of typical semiconductor peers, raising questions about what happens after the current AI super‑cycle slows. ^[40]
• A new Simply Wall St piece titled “What the Recent 141% Jump Means for Credo Technology Group Holding’s Valuation in 2025” appears to focus on the tension between massive price appreciation (a reported 141% jump) and valuation metrics, even if the full text is not easily accessible. ^[41]

Together, these more cautious voices underscore that valuation risk is rising even as fundamentals dramatically improve.

Fundamental Snapshot: Growth, Margins, Balance Sheet and Ownership

Putting the recent data together, Credo’s current profile looks something like this:

• Business model: High‑speed connectivity solutions (AECs, optical and line‑card ICs, SerDes IP) for data centers and AI infrastructure, with customers primarily among major cloud and hyperscale players. ^[42]
• Growth: Revenue has moved from tens of millions to hundreds of millions per quarter within a couple of years, and management is publicly aiming for a path toward multi‑billion‑dollar annual revenue as AI and cloud spending continue. ^[43]
• Margins: Gross margins in the mid‑ to high‑60s and targeted net margins in the mid‑40s for FY26 place Credo at the high end of profitability among semiconductor and connectivity peers. ^[44]
• Balance sheet: Over $800M in cash and short‑term investments and no major leverage issues give the company flexibility to invest heavily in R&D and capacity. ^[45]
• Institutional ownership: Fintel data show more than 1,000 institutional holders, with institutional ownership increasing in recent quarters and a put/call ratio of ~0.73, generally interpreted as bullish positioning. ^[46]

At the same time, MarketBeat points to sizable insider share sales over the last quarter (including large sales by the CFO and COO), which will be closely watched given the stock’s rapid appreciation. ^[47]

Key Risks Investors Are Watching

Even the most bullish research notes highlight several important risk factors:

1. Valuation risk
   • Trailing P/E is well above 150x; forward P/E is estimated at several dozen times earnings even after large forecast upgrades. ^[48]
   • A slowdown in AI data‑center capex, or even just growth falling back to “normal high” levels, could compress multiples significantly.
2. Customer concentration
   • MarketWatch reports that Credo’s largest customer — likely a mega‑cap cloud provider — represents about 42% of revenue, and the top four account for more than 90%. ^[49]
   • While the addition of a fifth hyperscaler helps, losing or slowing any major customer would have an outsized impact.
3. Supply‑chain and capacity constraints
   • Management and independent analyses flag advanced node wafer capacity as a potential bottleneck, especially as multiple AI‑related customers try to ramp simultaneously. ^[50]
4. R&D and opex ramp
   • Credo plans a significant increase in non‑GAAP operating expenses in Q3 and beyond, tied to new products and headcount. While these investments are growth‑oriented, they could pressure margins if revenue growth falls short. ^[51]
5. Share issuance and insider activity
   • Recent news around registering shares under an incentive plan and notable insider selling have raised questions about dilution and timing, even as the business itself performs strongly. ^[52]
6. AI super‑cycle durability
   • Skeptical takes, such as those on Seeking Alpha and valuation‑focused outlets, argue that investors may be extrapolating unusually strong AI‑driven growth too far into the future. If the AI build‑out becomes more cyclical, high‑flyers like Credo could be vulnerable to sharp corrections. ^[53]

Bottom Line: Is Credo Technology (CRDO) Stock a Buy, Sell or Hold Right Now?

As of December 3, 2025, the narrative around Credo Technology Group is clear:

• Bull case:
  • Credo sits at the heart of the AI infrastructure boom, supplying critical high‑speed connectivity for the largest AI training and inference clusters in the world.
  • Revenue is growing triple digits, margins are elite, and management is guiding to another year of hyper‑growth with very high profitability.
  • Top‑tier analysts have rushed to lift price targets into the $220–$250 range while labelling the stock Buy/Strong Buy, and institutional ownership continues to climb. ^[54]
• Bear (or cautious) case:
  • The stock already prices in a great deal of this optimism, trading at rich earnings multiples relative to the broader chip and connectivity universe. ^[55]
  • Customer concentration and supply‑chain constraints could magnify any bump in the road.
  • A normalization in AI spending, or simply a shift in investor sentiment toward “AI‑adjacent” names, could trigger sharp volatility given how far and fast CRDO has already run. ^[56]

For now, most of Wall Street remains firmly in the bull camp, but the latest wave of valuation‑focused articles shows that the debate is shifting from “can Credo grow?” to “how much of that growth is already in the price?”

If you’re following CRDO, the next key catalysts to watch will be:

• Execution against the Q3 FY26 guidance (revenue, margins and opex).
• Any additional hyperscaler wins or product ramps in ZeroFlap optics, ALCs and OmniConnect.
• Updated analyst targets and any shifts in consensus rating as the dust settles.

As always, this overview is informational, not investment advice. Consider your own risk tolerance, time horizon and portfolio context before making decisions about Credo or any other stock.

References

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