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11. Credo Technology Group Holding Ltd (NASDAQ:CRDO)

Number of Hedge Fund Holders: 59

On June 22, Evercore ISI analyst Mark Lipacis initiates coverage on Credo Tech (NASDAQ:CRDO) with an Outperform rating and a $325 price target. Analysts at the firm believe that Credo could increasingly benefit from growth in optical connectivity.

Currently, it is mostly known for its copper-based AI connectivity products because it created the active electric cable, or AEC, interconnect standard and developed a reliable full system solution combing both whole cable and chips instead of just chips.

However, we believe it will be increasingly viewed as a broad copper + optical AI-connectivity play as it prosecutes its optical roadmap, which includes optical DSPs, Silicon Photonics ICs, microLED cables and most importantly its ZFOptics modules, where consistent with its AEC playbook, it is also taking a systems approach.

The firm believes that Credo’s current total addressable market of roughly $5 billion to $10 billion could expand by 10 to 20 times due to its product roadmap. The firm models 100% and 60% growth for its AEC solutions during 2026 and 2027. Meanwhile, it believes that CRDO’s optical portfolio could accelerate and contribute up to 25% of revenues in 2027.

Overall, the firm believes Credo’s expected growth is not fully reflected in its stock price, supporting the $325 price target.