1. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Upside potential: 93.56%
On February 26, JPMorgan analyst Joseph Cardoso stated that the recent selloff in Credo Technology Group Holding Ltd (NASDAQ:CRDO) appears excessive, maintaining an Overweight rating. Previously, during Q3 filings, several major funds, including Intech Investment Management and Westfield Capital, trimmed their positions in the company. The firm argues that the valuation implies a near worst-case scenario, while competitive risks—particularly regarding Marvell’s entry into active electrical cables—are likely less severe or further out in timing than the market assumes. JPMorgan anticipates a competitive outcome similar to Astera’s experience, where share impact was more moderate than initially feared.
On February 10, Needham reiterated its Buy rating on Credo Technology Group Holding Ltd (NASDAQ:CRDO) with a $220 price target following a preliminary Q3 revenue update. The company expects approximately $406 million in revenue, significantly above prior guidance of $340 million, and anticipates continued growth into Q4 and fiscal 2027. Management projects mid-single-digit sequential quarterly growth and more than 200% year-over-year revenue expansion in fiscal 2026. Needham subsequently increased its forecasts, now modeling $1.92 billion in revenue for 2027 and $2.30 billion for 2028. The substantial upward revisions and sustained growth trajectory suggest that market concerns may underestimate the durability of Credo’s competitive positioning in high-speed connectivity.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) was founded in 2008. The company is based in the Cayman Islands with major operations in San Jose, California. It is a fabless semiconductor provider focused on high-speed connectivity solutions ranging from 100G to 1.6T for data centers, AI infrastructure, and enterprise networks, specializing in DSPs, SerDes IP, and active electrical cables.
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