Credo Technology Group (NASDAQ:CRDO) Trading Down 7.3% – What’s Next?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price dropped 7.3% during mid-day trading on Thursday . The stock traded as low as $110.68 and last traded at $114.48. Approximately 7,831,475 shares changed hands during trading, an increase of 17% from the average daily volume of 6,669,645 shares. The stock had previously closed at $123.46.

Key Stories Impacting Credo Technology Group

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: TensorWave partnership: Credo announced a deal to supply its ZeroFlap active electrical cables and optics into next‑generation AMD‑based AI clusters, a direct commercial win that helps convert Credo’s PCIe/retimer and high‑speed interconnect tech into deployments and revenues. TensorWave Partners with Credo
• Positive Sentiment: PCIe‑6 Toucan compliance: Credo’s Toucan PCIe 6.0 retimer passed PCI‑SIG compliance at 32.0 GT/s — a technical validation that lowers integration risk for hyperscalers and AI customers and strengthens Credo’s product credibility for data‑center rollouts. PCI‑SIG Compliance for Toucan
• Positive Sentiment: Momentum vs. legacy players: Recent writeups comparing CRDO to TXN highlight Credo’s faster AI‑fueled revenue growth and aggressive go‑to‑market in AI interconnects versus Texas Instruments’ scale — a narrative that supports upside expectations if Credo continues to convert design wins into shipments. CRDO vs. TXN: Which Semiconductor Stock Is the Better Buy?
• Neutral Sentiment: Competitive/industry moves: Marvell’s acquisition of Celestial AI (photonics/Photonic Fabric) raises the competitive bar for ultra‑high bandwidth AI fabrics; this is an industry development investors should watch but it’s not an immediate Credo revenue event. MRVL Celestial AI Acquisition
• Neutral Sentiment: Short‑interest note shows a reported increase but the published figures contain anomalies (zeros), so the data appears unreliable and shouldn’t be over‑interpreted without corroboration.
• Negative Sentiment: Valuation tension and concentration risk: Coverage around the TensorWave deal also flags valuation concerns and that Credo’s revenue is concentrated (Customer A exposure). Analysts warn of late‑cycle risk, potential margin pressure, and strategic vulnerability if hyperscalers accelerate moves to optical fabrics — all reasons investors may be trimming exposure. Credo TensorWave AI Deal Highlights Credo Q3 Preview (Seeking Alpha)

Analysts Set New Price Targets

Several equities analysts recently commented on CRDO shares. Weiss Ratings restated a “hold (c)” rating on shares of Credo Technology Group in a research report on Monday, December 29th. Barclays restated an “overweight” rating and set a $260.00 price target on shares of Credo Technology Group in a research report on Thursday, January 15th. KGI Securities upgraded shares of Credo Technology Group from a “hold” rating to an “outperform” rating and set a $230.00 target price on the stock in a report on Tuesday, December 2nd. Mizuho increased their price objective on Credo Technology Group from $165.00 to $225.00 and gave the stock an “outperform” rating in a report on Tuesday, December 2nd. Finally, Zacks Research cut shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, February 2nd. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $209.29.

Credo Technology Group Stock Performance

The stock has a 50-day moving average price of $135.02 and a two-hundred day moving average price of $143.56. The stock has a market capitalization of $20.68 billion, a PE ratio of 100.42 and a beta of 2.65.

Credo Technology Group (NASDAQ:CRDO) last issued its earnings results on Monday, December 1st. The company reported $0.67 earnings per share for the quarter, topping analysts’ consensus estimates of $0.49 by $0.18. The firm had revenue of $268.03 million during the quarter, compared to analyst estimates of $234.99 million. Credo Technology Group had a net margin of 26.63% and a return on equity of 25.28%. Credo Technology Group’s revenue for the quarter was up 272.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.07 earnings per share. As a group, equities analysts predict that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current year.

Insider Activity

In other news, Director Pantas Sutardja sold 1,875 shares of the business’s stock in a transaction on Friday, January 30th. The shares were sold at an average price of $128.67, for a total transaction of $241,256.25. Following the completion of the sale, the director directly owned 5,892,034 shares of the company’s stock, valued at approximately $758,128,014.78. The trade was a 0.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction on Thursday, January 29th. The stock was sold at an average price of $127.37, for a total value of $3,502,675.00. Following the transaction, the chief technology officer directly owned 6,299,870 shares in the company, valued at $802,414,441.90. The trade was a 0.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 917,976 shares of company stock worth $136,567,647 in the last three months. Corporate insiders own 11.84% of the company’s stock.

Institutional Investors Weigh In On Credo Technology Group

A number of institutional investors and hedge funds have recently modified their holdings of the company. California Public Employees Retirement System raised its stake in Credo Technology Group by 17.2% during the 2nd quarter. California Public Employees Retirement System now owns 257,567 shares of the company’s stock valued at $23,848,000 after purchasing an additional 37,772 shares during the period. Optimize Financial Inc acquired a new position in Credo Technology Group during the 3rd quarter worth $1,431,000. Estate Counselors LLC bought a new position in Credo Technology Group during the third quarter worth $2,548,000. Global Trust Asset Management LLC acquired a new stake in shares of Credo Technology Group during the 3rd quarter worth approximately $2,167,000. Finally, New York State Common Retirement Fund lifted its stake in Credo Technology Group by 106.5% during the third quarter. New York State Common Retirement Fund now owns 146,134 shares of the company’s stock worth $21,279,000 after purchasing an additional 75,369 shares during the period. Institutional investors and hedge funds own 80.46% of the company’s stock.

Credo Technology Group Company Profile

Credo Technology Group, Inc (NASDAQ: CRDO) is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo’s product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.