New York, Feb 5, 2026, 14:32 (EST) — Regular session
- CRDO shares climbed Thursday afternoon, bouncing back after a steep drop in recent days.
- Fortune reported that a Bank of America note pushed back against the recent AI-chip selloff.
- Insider-sale filings and the upcoming earnings report, due in early March, have traders on alert.
Shares of Credo Technology Group Holding Ltd climbed around 2% to hit $98.96 by Thursday afternoon. The Nasdaq-listed company’s stock swung between $93.66 and $101.78, with roughly 5.8 million shares changing hands. Credo’s market value stands near $32.5 billion, trading at approximately 153 times trailing earnings.
Credo provides high-speed connectivity tech that powers data transfer in cloud and hyperscale networks, a key area of infrastructure investment linked to AI expansions. This connection has turned the stock into a high-beta gauge for data-center demand sentiment. Reuters
Bank of America Global Research senior analyst Vivek Arya and his team said in a note this week that recent sell-offs in top AI chip stocks seemed “internally inconsistent,” according to Fortune. They pointed to bottlenecks like “power, land, data center shells,” highlighting Credo along with Nvidia and Broadcom. Fortune
The broader chip sector showed a mixed picture Thursday. The iShares Semiconductor ETF edged up around 0.8%, while Broadcom climbed close to 2.8%. Nvidia, meanwhile, remained largely flat.
Despite the bounce, traders noted the stock still behaves like a momentum play. It reacts swiftly to headlines and shifts in risk appetite.
Zacks Research downgraded Credo from “strong-buy” to “hold” in a report out earlier this week, MarketBeat said. MarketBeat
A regulatory filing revealed insider selling: on Feb. 2, a Form 4 disclosed that director and Chief Technology Officer Chi Fung Cheng offloaded 27,500 ordinary shares on Jan. 29 via a family trust. According to the filing, these trades followed a Rule 10b5-1 plan, which lets insiders execute trades on a preset timetable. SEC
The company is also pushing faster interconnect solutions, including a 224-gigabit “retimer” it revealed last month. This chip boosts high-speed signals, allowing them to travel longer distances over cables and circuit boards without errors. Credo Technology Group
Credo’s valuation is tight, leaving almost no margin for error. Even a subtle sign that hyperscaler spending is leveling off, or that clients are switching architectures quicker than anticipated, could send the shares tumbling.
Investors are turning their attention to the upcoming quarterly results and guidance, with Wall Street expecting a report in early March. Both Zacks and Nasdaq have March 3 marked as the projected earnings date, although the company hasn’t officially announced the timing. zacks.com
