5 Most Oversold Data Center Stocks to Invest In

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

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is included in our list of the most oversold data center stocks to invest in.

Over 90% of analysts continue to rate Credo Technology Group Holding Ltd (NASDAQ:CRDO) as a “Buy,” as of April 1, 2026, while the consensus price target of $200 implies upside potential of almost 100%.

Citing a strong quarter fueled by AEC customer ramps and strength in optical DSPs, Susquehanna reduced its price target on Credo Technology Group Holding Ltd (NASDAQ:CRDO) to $170 from $230 on March 3, 2026, while keeping a “Positive” rating. The investment firm also noted that ZF Optics could make a significant contribution by FY27 following the acquisition of two new clients.

On the same day, BofA maintained a “Buy” rating but lowered its price target from $200 to $160. After fiscal Q3 results matched the strong pre-announcement, the investment firm increased its pro-forma EPS estimates for FY27 and FY28 by 5% and 6%, respectively. It attributed the price target drop to industry multiple compression rather than company-specific weakness.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is involved in high-speed connectivity solutions for optical and electrical Ethernet and PCIe applications. Its portfolio includes active electrical cables, optical digital signal processors, and SerDes IP and chiplets. The company supports hyperscalers and the HPC market through predictive link optimization, PCIe retimers, and integrated circuit solutions.