CRDO Stock Has Surged 46% In The Past 5 Days — Does It Have Room For More Upside?

• Earlier this week, Credo announced an acquisition of DustPhotonics, a developer of Silicon Photonics Photonic Integrated Circuit technology for optical transceivers. 
• Goldman Sachs analyst James Schneider noted Credo's acquisition of DustPhotonics, saying the deal would accelerate its expansion into optical networking. 
• According to data from Koyfin, analysts covering CRDO stock have a 12-month average price target of $204.59, indicating an upside potential of about 28.7%.

Shares of Credo Technology Group Holding (CRDO) have rallied more than 46% in the past 5 days, gaining attention from investors and Wall Street analysts alike.

The company has been riding the wave of optimism over its acquisition of DustPhotonics, a developer of Silicon Photonics Photonic Integrated Circuit (SiPho PIC) technology for optical transceivers, announced earlier this week.

Following the news, Jefferies raised its price target on Credo to $225 from $175, while maintaining a ‘Buy’ rating on the stock, according to Investing.com. The updated target represents an upside potential of about 41.6% from the last close.

Earlier in the day, Goldman Sachs also raised the price target on Credo to $170 from $150 and kept a ‘Buy’ rating on its shares, as per TheFly.

Street Consensus

Jefferies said that it increased its estimates after Credo’s acquisition of DustPhotonics and the company’s guidance for more than $500 million in total Optics revenue for fiscal 2027. The analyst expects Credo’s Optics business in FY27 to generate approximately $125 million in Optical DSP revenue, more than $300 million in ZF Optics, and approximately $75 million in standalone PIC revenue.

Goldman Sachs analyst James Schneider also noted Credo's acquisition of DustPhotonics, saying that the deal would accelerate its expansion into optical networking and strengthen confidence in its diversification beyond copper-based active electrical cables, with improved visibility toward its $500 million optical revenue target by FY27, the analyst said.

Meanwhile, Bank of America raised its price target on the company to $210 from $160 and kept a ‘Buy’ rating on the shares after the acquisition. Rosenblatt analyst Mike Genovese also raised the firm's price target on Credo to $175 from $125 and kept a ‘Neutral’ rating on the shares.

According to data from Koyfin, 16 out of 17 analysts covering CRDO stock have a ‘Buy’ or higher rating on it, with a 12-month average price target of $204.59, indicating an upside potential of about 28.7%.

Stronger AI Connectivity

Credo’s acquisition of DustPhotonics is aimed at strengthening its optical interconnect roadmap and expanding its footprint in the global optical market. DustPhotonics’ silicon photonics technology will enhance performance, lower costs, and improve reliability for AI data centers, while boosting Credo’s ZeroFlap platform and reducing supply dependencies, the company said.

Credo also said that it sees this as a key inflection point, expecting its optical business to surpass $500 million in revenue by FY27, supported by growing hyperscale AI demand. CEO William Brennan called the deal a defining step toward leading AI connectivity.

Retail Reaction

On Stocktwits, retail sentiment around CRDO stock was in the ‘extremely bullish’ territory amid ‘extremely high’ message volumes at the time of writing. Retail chatter around the stock has increased 79% in the past week.

While CRDO shares closed down 5.6% on Thursday, they have rallied more than 321% in the past year.

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