NEW YORK, Dec. 27, 2025, 4:46 p.m. ET — Market Closed
Credo Technology Group Holding Ltd (NASDAQ: CRDO) heads into the weekend pause after a sharp pullback in thin, post-holiday trading—an environment that can exaggerate moves in high-beta, momentum-heavy semiconductor names.
CRDO shares finished Friday, Dec. 26 at $144.83, down $5.36 (-3.57%), and were last quoted in Friday’s after-hours session at $144.50 (-0.23%). [1] With U.S. equities closed for the weekend, the next real liquidity test arrives when markets reopen on Monday, Dec. 29, as investors weigh whether Friday’s drop was routine profit-taking—or an early signal of renewed volatility around AI-infrastructure spending expectations.
Friday’s broader tape was quiet and slightly negative. Wall Street ended marginally lower in a low-volume session, with analysts citing profit-taking after a strong run into the holidays and noting the market’s “Santa Claus rally” window. [2]
What happened to CRDO stock on Friday
In Friday’s regular session, Credo traded as low as $144.66 (intraday low) and saw roughly 2.71 million shares change hands—about 51% below its average daily volume, according to MarketBeat’s summary of the session. [3]
That combination—a sizable decline on lighter-than-normal volume—often reads as a market “reset” rather than a panic unwind, especially around holidays. Still, Credo’s volatility profile matters: MarketBeat lists the stock with a beta above 2 and a triple-digit P/E, metrics that tend to amplify both upside and downside when sentiment turns. [4]
The “last 24–48 hours” headline check: what’s new, what isn’t
While Friday’s price action is the most immediate development, the company itself has not posted a fresh press release in the last two days. Credo’s investor relations news page shows its most recent corporate updates dated Dec. 3, 2025 (conference participation) and Dec. 1, 2025 (earnings). [5]
What did publish in the past 24–48 hours were ownership and flow-related items based on institutional filings:
- Carnegie Investment Counsel reduced its stake in Credo during Q3, according to a MarketBeat report summarizing a Form 13F filing (these filings reflect positions as of the quarter’s end and can be backward-looking). [6]
- A separate MarketBeat item also highlighted Harbor Capital Advisors trimming its position (again tied to quarterly filing disclosures rather than real-time trading). [7]
These types of “institutional stake change” stories can move sentiment around the margins—particularly in a stock that has become a popular AI-infrastructure proxy—but they typically do not explain day-to-day price moves on their own, since they often report historical quarter-end holdings.
The fundamental story investors are still trading: AI-driven connectivity demand
Credo’s recent rally—and the stock’s sensitivity to tape shifts—has been anchored to a single, powerful narrative: AI data-center buildouts are pushing networking bandwidth and power constraints to the limit, and Credo sells components positioned at that bottleneck.
In its latest quarterly report (fiscal Q2 2026, ended Nov. 1, 2025), Credo reported:
- Revenue of $268.0 million, up 20.2% sequentially and 272.1% year over year
- Non-GAAP diluted EPS of $0.67
- A Q3 revenue outlook of $335.0 million to $345.0 million
[8]
CEO Bill Brennan framed the quarter as tied to the “continued build-out” of major AI training and inference clusters, while pointing to growth in core franchises and upcoming ramps in newer offerings (including ZeroFlap Optics, ALCs, and OmniConnect gearbox solutions). [9]
In other words: even after Friday’s dip, the debate around CRDO is less about “whether AI is real” and more about how durable and smooth the hyperscaler deployment curve will be into 2026 and beyond.
A key risk investors should keep front-of-mind: customer concentration
Credo’s growth is impressive—but it’s also concentrated.
In its Form 10‑Q filed for the quarter ended Nov. 1, 2025, the company disclosed that Customer A represented 64% of revenue for the three months ended Nov. 1, 2025 (and 58% for the six months ended Nov. 1, 2025). Customer B accounted for 16% of quarterly revenue (and 25% for the six months). [10]
The same filing also highlights a “Customer Warrant” issued to Amazon.com NV Investment Holdings LLC, including disclosures around exercises of warrant shares. [11]
For investors, the takeaway is straightforward:
- Customer concentration can turbocharge revenue when a major customer ramps deployments.
- It can also create air pockets when that same customer digests capacity, shifts architecture, renegotiates pricing, or changes purchasing cadence.
That concentration factor is one reason CRDO can swing sharply even when there is no new headline—particularly in low-liquidity sessions.
Wall Street forecasts and analyst stance: bullish targets, but choppiness is a feature
Sell-side coverage remains active. Credo’s own analyst coverage list includes firms such as Bank of America (Vivek Arya), Barclays (Thomas O’Malley), Susquehanna (Christopher Rolland), and TD Cowen (Sean O’Loughlin), among others. [12]
On targets and ratings:
- MarketBeat reports a consensus “Buy” view with a consensus price target of $206.85, and notes that some firms have published targets up to $240. [13]
- In a separate analyst-note item distributed via TheFly and republished by TipRanks, BofA analyst Vivek Arya lowered Credo’s price target to $200 from $240 while keeping a Buy rating, while also emphasizing that semiconductor stocks tied to AI buildouts may remain “choppy” as investors scrutinize AI returns and hyperscaler cash flows. [14]
The common thread across bullish takes is that Credo sits in an attractive part of the AI infrastructure stack—high-speed connectivity—where demand can remain strong even as hyperscalers optimize spending elsewhere. The common thread across cautious takes is that expectations are high, and the stock’s valuation and volatility leave little room for disappointment.
If the exchange is closed: what investors should know before the next session
Because it’s the weekend, there’s no U.S. premarket tape to watch yet. But investors positioning for Monday should focus on a short checklist—especially given the year-end “Santa Claus rally” period and historically lighter volumes: [15]
1) Watch Sunday night index futures and megacap AI leaders
CRDO often trades as part of a broader “AI infrastructure” basket. If Nasdaq futures weaken Sunday evening, high-beta semis can gap down Monday regardless of company-specific news.
2) Separate “filing headlines” from real-time fundamentals
The institutional stake-reduction stories circulating this weekend are tied to quarterly 13F disclosures and may not reflect current positioning. Treat them as context for sentiment—not as a timestamped view of today’s flows. [16]
3) Re-anchor on the next fundamental catalyst: guidance execution
Credo’s latest guide calls for $335M–$345M in Q3 revenue. For a stock that has already priced in major AI-driven upside, Monday’s trading will likely continue to revolve around one question: Is the company on track to deliver that trajectory cleanly, and is demand broadening beyond the biggest customer? [17]
4) Know what “risk” looks like in CRDO specifically
Customer concentration disclosures and the Amazon-related warrant details are not new—but they are pivotal for how investors handicap durability. If the market narrative shifts from “AI buildout accelerates” to “AI capex gets optimized,” concentrated suppliers can re-rate quickly. [18]
Bottom line
Credo Technology Group (CRDO) enters the weekend with momentum investors reassessing positioning after Friday’s -3.6% slide in a thin, post-holiday session. [19] The company’s growth profile—fueled by AI connectivity demand and reinforced by a Q3 revenue outlook of $335M–$345M—continues to command bullish analyst targets. [20]
But the same forces that powered CRDO’s rise—customer concentration and hyperscaler-driven ramps—also explain why the stock can move fast when the macro tape softens or when investors question the pace of AI infrastructure spending.
With the market closed until Monday, the most important work for investors may be less about predicting the next tick—and more about stress-testing the thesis: Does Credo’s demand remain strong and diversified enough to justify premium valuation, even if the broader AI trade gets choppier into year-end? [21]
References
1. www.marketwatch.com, 2. www.reuters.com, 3. www.marketbeat.com, 4. www.marketbeat.com, 5. investors.credosemi.com, 6. www.marketbeat.com, 7. www.marketbeat.com, 8. investors.credosemi.com, 9. investors.credosemi.com, 10. s205.q4cdn.com, 11. s205.q4cdn.com, 12. investors.credosemi.com, 13. www.marketbeat.com, 14. www.tipranks.com, 15. www.reuters.com, 16. www.marketbeat.com, 17. investors.credosemi.com, 18. s205.q4cdn.com, 19. www.marketbeat.com, 20. investors.credosemi.com, 21. www.tipranks.com
