Credo Technology (CRDO) is rated 'sell' because it remains overvalued and faces significant execution risks, even after a recent 33% stock price decline. The company's growth is shifting from high-margin Active Electrical Cables to lower-margin optics, a segment with strong competition and integration challenges following the DustPhotonics acquisition. Additionally, CRDO's revenue risk is heightened by heavy customer concentration, with two customers accounting for 61% of sales and no long-term purchase commitments. Despite the stock drop, CRDO still trades at high valuation multiples, reflecting concerns about its growth quality and profitability.
Credo Technologies is set to report its Q1 FY2027 earnings on September 1, with analysts forecasting $470.38 million in revenue, marking a 111% year-over-year increase. Optical revenue is projected to surpass $600 million in FY2027, becoming a key gr...
Credo Technology's stock surged nearly 95% over the past year, driven by strong revenue growth and successful AI infrastructure products. Despite a recent 21% drop, fundamentals remain solid with FY2026 revenue tripling to $1.3 billion and management...
Credo has been upgraded to a Hold rating ahead of its fiscal Q1 earnings report, with a more attractive valuation at 36 times forward earnings. The company expects Q1 revenue between $465 million and $475 million, implying a strong 110% year-over-yea...
