Roth Capital Cuts TP on Credo Technology (CRDO) to $200

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.

Roth Capital cut its target price on Credo Technology on February 10 by 20.0% to $200 (from $250) but retained its Buy recommendation on the stock. The TP cut was driven primarily by falling investor sentiment sector-wide, which has led to lower valuation multiples for tech and software stocks. The drag from the lower industry valuation more than offset the above consensus earnings preview released by the company, which showed increasing unit demand as well as higher prices due to newer, longer-reach rack-to-rack AEC cabling.

This update from Roth Capital comes a day after CRDO’s management released a preview of its Q3-FY2026 earnings as well as an updated guidance on Q4 on February 9. The release showed Q3 revenue reaching $404 million to $408 million, exceeding both the street consensus of $342 million and the previous revenue guidance of $335 to $345 million. Moving forward, management expects revenue to grow in the mid-single digits quarter over quarter, translating to 200+% year over year. The full earnings report will be released on March 2.

Roth Capital Cuts TP on Credo Technology (CRDO) to $200

Despite the positive revenue preview and guidance, Credo Technology’s stock is still down 14.8% year-to-date, which Roth Capital’s analyst attributed to “broader sector share moves.”

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 this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.