Needham Names Credo Technology Group Holding Ltd (CRDO) a Top Pick for 2026

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is among the most promising growth stocks according to analysts. On January 9, Needham reaffirmed the ‘Buy’ rating on Credo Technology Group Holding Ltd (NASDAQ:CRDO), with a price target of $220. This reaffirmation, implying an upside potential of 41%, comes as the firm includes the company in its Conviction List, while naming it a Top Pick for 2026. Needham believes the company is an appealing way to benefit from the AI wave.

According to the firm, meaningful near-term opportunities position Credo Technology Group Holding Ltd (NASDAQ:CRDO) well to surpass analyst estimates. These prospects arise from the increased adoption of Active Electrical Cable (AEC) by hyperscalers and the introduction of new products into the production phase. That said, Needham has a FY28 non-GAAP EPS guidance of over $5 for the company.

“We encourage investors to Buy Credo on recent weakness and to focus on the signal in the current noise,” the analyst wrote. “With significant near-term opportunities ahead as AEC adoption proliferates across hyperscalers and as new products ramp to production, we expect Credo to beat current consensus estimates.”

Credo Technology Group Holding Ltd (NASDAQ:CRDO), based in Grand Cayman, the Cayman Islands, is a provider of high-speed connectivity solutions. Founded in 2008, the company offers its products to hyperscalers, original equipment manufacturers, and other companies in the enterprise and HPC markets.

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.