Mizuho Lifts Credo Technology Group Holding Ltd (CRDO)’s Price Target to $81, Maintains Outperform Rating

On Tuesday, analysts at Mizuho raised Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s price target to $81 from $70, while maintaining an Outperform rating for its shares. The adjustment follows the company’s earnings call on June 2, in which it announced impressive results for the fourth quarter of fiscal year 2025.

Mizuho Lifts Credo Technology Group Holding Ltd (CRDO)'s Price Target to $81, Maintains Outperform Rating

An engineer in a cleanroom testing and tweaking an integrated circuit.

Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s revenue was reported at $170 million, growing 25.9% sequentially and 179.7% year-over-year. Non-GAAP diluted earnings per share stood at $0.35, surpassing consensus estimates.

The company also provided strong guidance for the first quarter of fiscal 2026. It expects revenue between $185 million and $195 million, significantly above the market’s expectations, while non-GAAP gross margin is expected to be in the range of 64% to 66%.

Another factor contributing to the optimism surrounding Credo Technology Group Holding Ltd (NASDAQ:CRDO) is the expected ramp-up of two new hyperscale customers during the second half of FY26.

The stock surged 14.80% on Tuesday to close at $71.92.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) provides high-speed connectivity solutions to deliver optimized performance, energy efficiency, reliability, and security for the next generation of AI-driven applications, hyperscale networks, and cloud computing.

While we acknowledge the potential of CRDO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRDO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: ChatGPT Stock Advice: Top 12 Stock Recommendations and 10 Cheap Rising Stocks to Buy Right Now.

Disclosure: None.