Wall Street Bullish on Credo Technology Group (CRDO), Here's Why

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the Best Up and Coming AI Stocks to Buy. On March 3, William Blair reiterated a Buy rating on the stock, without disclosing any price targets. On the same day, Bank of America Securities reiterated a Buy rating on Credo Technology Group Holding Ltd (NASDAQ:CRDO) but lowered the price target from $200 to $160.

​The ratings follow Credo’s fiscal Q3 2026 earnings release on March 2. During the quarter, the company grew its revenue by 201.49% year-over-year to $407.01 million, surpassing estimates by $15.42 million. The EPS of $1.07 also topped estimates by $0.13. Management noted the quarter to be a record-breaking one, driven by strong demand from hyperscaler customers.

​Management highlighted that all of its top 3 customers contributed more than 10% to the total revenue, with the first contributing 39%, the second 32%, and the third 17% for the quarter. For the next quarter, the company expects revenue between $425 million and $435 million, while non-GAAP gross margin is guided at 64%-66%.

​BofA highlighted the quarterly performance to be in line with earlier “stellar pre-announcement.” As a result, the firm raises its FY27 and FY28 pro-forma EPS estimates by 5% and 6%, respectively. The lower price target is based on the industry multiple re-rating, said BofA in a research note.

​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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