After Dust Photonics Acquisition, Credo Technology (CRDO) Posts Earnings Beat; Should You Buy CRDO Stock?

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds. On June 2, TD Cowen analyst Sean O’Loughlin raised the firm’s price target on Credo Technology Group Holding Ltd (NASDAQ:CRDO) to $260 from $240 and maintained a Buy rating on the stock. The upwardly revised price target reflects around 11% upside from current levels. The price target revision came after the company announced its Q4 2026 earnings.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) announced its fourth-quarter fiscal 2026 earnings on June 1. The company reported revenue of $437 million, up 7% year over year. This came in above the Wall Street consensus of $433 million. The EPS of $1.16 also exceeded analysts’ expectations. The company’s focus on its optical portfolio has significantly contributed to its revenue growth.

Going forward, the company expects first-quarter fiscal 2027 revenue between $465 and $475 million. The acquisition of Dust Photonics, which was completed on May 28, is one of the factors for the positive outlook. It will expand the company’s optics position with highly differentiated silicon photonics PIC technology.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) develops high-speed connectivity products and solutions for the data infra market (specifically optical and electrical Ethernet and PCIe applications), including SerDes chiplets, integrated circuits, and electrical cables. The company is based in George Town, Cayman Islands, and was founded in 2008 by Chi Fung Cheng and Yat Tung Lam.

While we acknowledge the risk and potential of CRDO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRDO and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Mid-Cap AI Stocks to Buy According to Analysts and Best 52-Week Low Stocks to Buy According to Hedge Funds.

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1