NEW YORK, August 2, 2026, 15:03 EDT
Shares of Credo Technology Group Holding Ltd NASDAQ:CRDO finished Friday’s session at $206.99, rising 2.9%. In after-hours trading, the stock slipped 1.0% to $205. The stock’s regular session advance pushed its two-day recovery to 16.6%.
Credo ended the week 2.9% lower following the rebound. U.S. cash markets did not operate Sunday and are set to resume trading Monday. The stock is still trading 31.6% under its record closing high of $302.52 reached on June 22.
The decline reduced Credo’s valuation but its growth premium remains intact. On Friday, the company’s market capitalization stood at $38.6 billion, representing 20.5 times its projected annualized first-quarter revenue. This preliminary figure is based on management’s midpoint revenue estimate of $470 million.
| Credo session | Close | Daily move |
|---|---|---|
| July 24 | $213.15 | -9.87% |
| July 27 | $208.14 | -2.35% |
| July 28 | $192.28 | -7.62% |
| July 29 | $177.45 | -7.71% |
| July 30 | $201.08 | +13.32% |
| July 31 | $206.99 | +2.94% |
Weekly closing figures use the prior Friday as the baseline.
The decline was steep. Credo fell 16.7% by Wednesday, before rebounding 16.6% over the next two sessions. The recovery regained approximately 80% of the earlier loss.
Credo continued to outperform its chip sector benchmark for the week. The PHLX Semiconductor Index dropped 4.3%, as the Nasdaq Composite rose 1.6%.
| Instrument | Friday move | Weekly move |
|---|---|---|
| Credo Technology | up 2.94% | down 2.89% |
| PHLX Semiconductor Index | up 0.07% | down 4.30% |
| Nasdaq Composite | up 1.00% | up 1.59% |
Week-on-week data reflects closing values from July 24 and July 31.
Management forecast first-quarter revenue between $465 million and $475 million, with a non-GAAP gross margin estimate between 67% and 69%. At the midpoint, revenue would increase 7.6% sequentially and 110.7% compared with the same period a year earlier.
| Fiscal period | Revenue | Sequential growth | Year-over-year growth |
|---|---|---|---|
| Q1 FY2026 actual | $223.1 million | 31.0% | 274.0% |
| Q4 FY2026 actual | $437.0 million | 7.4% | 157.0% |
| Q1 FY2027 guidance midpoint | $470.0 million | 7.6% | 110.7% |
Guidance figures do not represent actual revenue. Growth rates with an asterisk are based on initial estimates.
“Fiscal 2026 marked another defining year for Credo,” Chief Executive Bill Brennan said in June. Revenue for the year surged 205.7% to $1.335 billion. Growth in active electrical cable ramps contributed over 99% of the $898.3 million gain. Credo Technology Group
Astera Labs Inc NASDAQ:ALAB is valued at the highest run-rate multiple compared to other connectivity companies. On the same basic metric, Marvell Technology Inc NASDAQ:MRVL is priced lower than Credo.
| Company | Friday market value | Last-quarter revenue | Next-quarter midpoint | Implied sequential growth | Market value/annualized midpoint |
|---|---|---|---|---|---|
| Credo | $38.60 billion | $437.0 million | $470.0 million | 7.6% | 20.5 times |
| Astera Labs | $53.35 billion | $308.4 million | $360.0 million | 16.7% | 37.0 times |
| Marvell | $164.26 billion | $2.418 billion | $2.700 billion | 11.7% | 15.2 times |
Initial estimates rely on midpoint figures from company outlooks as well as Friday’s market values. Note that variations exist in business composition and fiscal year schedules.
Credo’s position falls between that of a rapidly expanding specialist and a bigger, more diversified supplier. Its trailing price-to-earnings ratio stood at 83.5, compared to Marvell’s 64.1 and Astera’s 209.8. These numbers suggest there is little room for growth to decelerate.
Two new updates on AI infrastructure demand arrive Tuesday. Astera will announce results post-market and is set to hold its earnings call at 4:30 p.m. EDT. The previous midpoint guidance of $360 million suggested a sequential increase of 16.7%.
Advanced Micro Devices Inc NASDAQ:AMD is set to hold its earnings call at 5 p.m. EDT. The company has forecasted its quarterly revenue to reach around $11.2 billion, with a possible fluctuation of $300 million either way. According to management, the midpoint of this range would mark a 9% increase compared to the prior quarter.
As of Sunday, Credo’s investor calendar showed no scheduled events for August 3-7. Astera supplies a more immediate view on connectivity trends. AMD is set to give a wider indication of accelerator and server demand.
Risks: Credo relied on three end customers for 84% of its fiscal 2026 revenue, while its 10 largest direct customers contributed close to 90%. The majority of orders do not have long-term purchase agreements and may be adjusted or postponed.
Monday’s trading will reveal if the rebound is sustained. The greater challenge is still revenue breadth. Credo’s valuation continues to depend on both speed and execution.
