5 Semiconductor Stocks with Highest Upside Potential Right Now

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

Number of Hedge Fund Holders: 69

Upside Potential: 22.29%

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the best semiconductor stocks with the highest upside potential right now. Rothschild & Co Redburn initiated coverage of Credo Technology Group Holding Ltd (NASDAQ:CRDO) with a Buy rating on May 1, setting a price target of $206. The firm told investors in a research note that the monetization of generative AI capex will require more intelligent large language models, and the transmission of electrical signals down copper wires will increasingly give way to the transmission of photonic signals down optical fibers.

It also believes the transition marks a new addressable market for optical networking companies, but noted that some of the opportunity has already been discounted by the market. Rothschild & Co Redburn launched the coverage of six names in the AI networking space with four Buys and two Neutrals. For additional reference, in its financial results for fiscal Q3 2026, Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported revenue of $407.0 million, reflecting growth of 51.9% quarter over quarter and 201.5% year over year.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) develops connectivity solutions and products for the data infrastructure market, with its products including integrated circuits, active electrical cables, and SerDes chiplets.

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