Stifel Lowers Credo (CRDO) Price Target Despite Tensorwave AI Infrastructure Collaboration

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is among the 12 best stocks to buy and hold for the next 2 years.

On February 27, Stifel lowered its price target on Credo Technology Group Holding Ltd (NASDAQ:CRDO) to $200 from $225 while maintaining a Buy rating. Stifel’s reduction of its 12-month price target on the stock is based on a 23.4x fiscal 2027 EV-to-Sales multiple on lower comps.

The firm expects Credo Technology Group Holding Ltd (NASDAQ:CRDO) to post results in line with its recently increased third-quarter fiscal 2026 revenue midpoint guidance of $406.0 million, representing a 51.5% quarter-over-quarter increase driven by AEC ramps at multiple hyperscalers. The company’s gross profit margin of 67% supports its premium valuation as revenue growth accelerates, according to the analyst.

Meanwhile, on February 25, Credo Technology Group Holding Ltd (NASDAQ:CRDO) reached a collaboration agreement with TensorWave, an Advanced Micro Devices (AMD)-exclusive AI cloud provider. This agreement will see TensorWave working with Credo Technology Group Holding Ltd (NASDAQ:CRDO) to deploy the latter’s ZeroFlap family of electrical cables and optics across the former’s AI cluster infrastructure.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) develops connectivity solutions and products for the data infrastructure market. Its products include integrated circuits, active electrical cables, and SerDes chiplets.

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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