B of A Securities raises Credo Technology target to $340

0 min read | Published on 23 Jun 2026, 07:56 PM |Updated on 23 Jun 2026, 07:56 PM

Reviewed by

Radhika SScanX News Team

Key Highlights

B of A Securities analyst Vivek Arya maintained a Buy rating on Credo Technology Group and raised the price target to $340 from $252.

*this image is generated using AI for illustrative purposes only.

B of A Securities analyst Vivek Arya has maintained a Buy rating on Credo Technology Group, citing a positive outlook. The firm has increased its price target for the stock to $340, up from the previous target of $252.

Rating and Price Action

The rating upgrade reflects confidence in the company's performance and future growth prospects. The new price target of $340 represents a significant increase from the prior level of $252.

Metric	Value
Rating	Buy
Previous Price Target	$252
New Price Target	$340

The revised target suggests potential upside based on the firm's analysis.

What specific market trends or product developments are driving the increased confidence in Credo Technology's growth prospects?

How might this price target revision influence investor sentiment and trading volume in the short term?

What are the potential risks or challenges Credo Technology could face that might hinder achieving the new price target?

Credo targets $10B market in agentic AI connectivity cycle

1 min read | Published on 22 Jun 2026, 07:32 PM |Updated on 22 Jun 2026, 11:22 PM

Reviewed by

Radhika SScanX News Team

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Key Highlights

Credo Technology Group Holding Ltd is positioned to capitalize on a $10 billion total addressable market driven by agentic AI data-center interconnects, according to BNP Paribas. The company anticipates roughly 80% year-over-year growth in fiscal 2027, fueled by Active Electrical Cables and optical solutions like ZeroFlap transceivers. Evercore ISI initiated coverage with an Outperform rating and a $325 price target, citing Credo's integrated systems approach and expanding hyperscaler customer base.

*this image is generated using AI for illustrative purposes only.

Credo Technology Group Holding Ltd is emerging as a leveraged play on the AI data-center interconnect cycle, with BNP Paribas identifying a total addressable market exceeding $10 billion driven by agentic AI network builds. The firm frames the opportunity as an Active Electrical Cables (AEC) upgrade combined with an expanding optical growth sector. Credo expects roughly 80% year-over-year fiscal 2027 growth, with about half derived from AEC revenue reaching approximately $1.8 billion.

Optical Expansion and Technology

Optics represents a significant growth leg, with BNP Paribas projecting more than $600 million in fiscal 2027 revenue from ZeroFlap (ZF) optical transceivers, optical DSPs, and DustPhotonics Ltd photonic integrated circuits. This segment is expected to approach a 25% revenue mix, offering margin accretion. Credo plans to ship hundreds of thousands of ZF transceiver units monthly by late fiscal 2027. The company's SerDes-plus system-level approach aims for tighter integration and latency of roughly 6 ns compared to peers at around 10 ns.

Customer Base and Analyst Ratings

Customer concentration risk is easing as Credo engages with five of six leading hyperscalers, likely including Amazon.com Inc., Meta Platforms Inc., Microsoft Corp., xAI, and Oracle Corp. Neoclouds are projected to approach 20% of revenue over time. Evercore ISI initiated coverage on Credo with an Outperform rating and a $325 price target, highlighting the company's design, manufacturing, and end-to-end testing as competitive advantages. The firm expects optical revenue alone to surpass $600 million by 2028.

Metric	Value
Price Target	$325
Rating	Outperform
Fiscal 2027 Growth Estimate	~80% YoY
Projected AEC Revenue (FY27)	~$1.8 billion
Projected Optical Revenue (FY27)	>$600 million
Total Addressable Market	>$10 billion

Credo stock was up 7.67% at $292.67 recently, gaining about 27.4% over the past month and roughly 96% year-to-date, trading at new 52-week highs.

How will the competitive landscape for Active Electrical Cables evolve by fiscal 2027 as other vendors target the same $10 billion addressable market?

What are the potential supply chain bottlenecks Credo might face when ramping up to ship hundreds of thousands of ZeroFlap transceiver units monthly?

To what extent could the diversification into optical products impact Credo's profit margins relative to its traditional AEC business?