"Credo makes high-speed connectivity chips and cables for data centers. Think of it as the plumbing that moves data between AI chips at extreme speeds without losing signal integrity. Its flagship product line, Active Electrical Cables, connects racks of GPUs inside hyperscale data centers at lower cost and higher reliability than traditional optical solutions."
"Preliminary Q3 revenue came in at $404 to $408 million, representing over 272% year-over-year growth, and the company updated its full-year FY2026 guidance to over 200% year-over-year growth."
"Goldman Sachs initiated coverage with a Buy rating and a price target of $165 to $175, calling out AEC cost-effectiveness and a relevance runway extending beyond 2030."
"Insiders, including the CEO, CTO, and COO, sold over $136 million in shares over the past 90 days. That does not invalidate the growth story, but it is a signal worth monitoring."
Credo Technology manufactures high-speed connectivity chips and cables essential for data center operations, particularly for AI infrastructure. The company's flagship Active Electrical Cables connect GPU racks in hyperscale data centers with superior cost-effectiveness and reliability compared to traditional optical solutions. Q3 preliminary revenue reached $404-$408 million, representing 272% year-over-year growth, with full-year FY2026 guidance updated to over 200% growth. CEO William Brennan projects continued 50%+ growth into FY2027, with analyst projections suggesting revenue approaching $2 billion. Multiple analysts maintain Buy ratings, with Goldman Sachs initiating coverage at $165-$175 price target. However, insider selling of over $136 million in shares within 90 days presents a notable risk signal.
Read at 24/7 Wall St.
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