Is Credo Technology (CRDO) One of the Best Up and Coming Stocks to Buy According to Wall Street?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is one of the best up and coming stocks to buy according to Wall Street. On December 16, Bank of America analyst Vivek Arya lowered the firm’s price target on Credo Technology to $200 from $240 and maintained a Buy rating on the shares. This sentiment was announced as BofA updated its price targets for covered US Semiconductor stocks. The firm anticipates that stock prices may experience volatility due to scrutiny of AI returns and hyperscaler spending, but choppiness will be mitigated by the growth of LLM development and the expansion of AI factories.

In FQ2 2026, Credo Technology Group Holding Ltd. (NASDAQ:CRDO) achieved record revenue of $268 million, which was a 20% sequential increase and a 272% surge year-over-year. This growth was fueled by the expansion of AI training and inference clusters, driving a non-GAAP gross margin of 67.7% and non-GAAP net income of $127.8 million.

Credo reported that four domestic customers each accounted for more than 10% of total revenue: the largest at 42%, followed by 24%, 16%, and 11%. The company’s Active Electrical Cable line remains its fastest-growing segment, as these cables have become the industry standard for inter-rack connectivity due to being 1,000 times more reliable than traditional optics while consuming half the power.

Credo projects a revenue between $335 and $345 million. For the full FY2026, the company raised its total revenue growth forecast from 120% to over 170% year-over-year. This upward revision reflects a strengthening demand across the sector rather than a single customer win.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) provides various high-speed connectivity solutions for optical and electrical Ethernet and PCIe applications in the US, Taiwan, Mainland China, Hong Kong, and internationally.

While we acknowledge the potential of CRDO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.