Credo Technology Group remains a Buy due to accelerating business momentum driven by robust AI data center demand and a diversified connectivity platform. The company has raised its Q3 FY2026 revenue guidance to over 200% Y/Y growth and projects FY2027 revenue near $2B with 45% net margins. Despite recent fears, Credo’s Advanced End-point Controllers (AECs) are considered essential for inter-rack connectivity, preserving its expanding Total Addressable Market (TAM), with a valuation model suggesting 38% upside over the next year.
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Credo's Earnings Set To Ignite Rally (Preview) (NASDAQ:CRDO)
Credo Technology Group remains a Buy due to accelerating business momentum driven by robust AI data center demand and a diversified connectivity platform. The company has raised its Q3 FY2026 revenue guidance to over 200% Y/Y growth and projects FY2027 revenue near $2B with 45% net margins. Despite recent fears, Credo’s Advanced End-point Controllers (AECs) are considered essential for inter-rack connectivity, preserving its expanding Total Addressable Market (TAM), with a valuation model suggesting 38% upside over the next year.