Credo Technology Group (NASDAQ:CRDO) Shares Down 9.7% – What’s Next?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price traded down 9.7% on Wednesday . The company traded as low as $121.21 and last traded at $121.6640. 2,570,150 shares were traded during mid-day trading, a decline of 63% from the average session volume of 6,995,039 shares. The stock had previously closed at $134.72.

Credo Technology Group News Summary

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

• Positive Sentiment: Credo reported preliminary Q3 FY2026 revenue of $404–$408M, well above consensus, and updated Q4 revenue guidance — the beat is the primary catalyst for recent buying interest. Read More.
• Positive Sentiment: Management has raised near-term and multi?year revenue targets (Q3 guidance implying ~200% Y/Y and commentary pointing toward FY2027 revenue near $2B with very high net margins), which supports a much larger TAM from AI/hyperscale interconnect demand. Read More.
• Positive Sentiment: Several analyst pieces upgraded the narrative or the rating/target after the beat — multiple bullish notes argue the company’s revenue and margin trajectory de?risks the valuation and supports fresh long positions. Read More.
• Positive Sentiment: Sell?side support: Needham reaffirmed a Buy rating with a $220 target, signaling strong analyst conviction and giving the stock more runway on upgrades. Read More.
• Neutral Sentiment: Market reaction: media and market sites note above?average volume and a sizeable intraday rally after hours/premarket on the results — this confirms broad attention but also raises near?term volatility risk. Read More.
• Neutral Sentiment: Operational/PR items: Credo scheduled its Q3 results conference call and continues to provide updated guidance ahead of formal earnings — useful for confirming the preliminary figures but not new fundamental news. Read More.
• Negative Sentiment: Profit?taking / valuation noise: after the rally shares have pulled back today, and some commentators note that rapid estimate upgrades may already be partially priced in — near?term upside could be limited and volatility elevated. Read More.
• Negative Sentiment: Short interest data reported recently is inconsistent/odd (shows zero shares), which can create misleading narratives about short covering or squeeze dynamics — treat that data with caution. (internal filings/official exchanges should be checked)

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Credo Technology Group in a report on Monday, December 29th. JPMorgan Chase & Co. started coverage on Credo Technology Group in a research note on Friday, October 17th. They set an “overweight” rating and a $165.00 price target on the stock. Bank of America upped their price objective on Credo Technology Group from $165.00 to $240.00 and gave the company a “buy” rating in a research note on Tuesday, December 2nd. Needham & Company LLC reiterated a “buy” rating and set a $220.00 target price on shares of Credo Technology Group in a research report on Tuesday. 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 analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $212.69.

Credo Technology Group Stock Performance

The stock’s 50 day moving average price is $143.01 and its 200 day moving average price is $142.92. The company has a market capitalization of $22.47 billion, a P/E ratio of 109.38 and a beta of 2.65.

Credo Technology Group (NASDAQ:CRDO) last announced 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. Credo Technology Group had a net margin of 26.63% and a return on equity of 25.28%. The business had revenue of $268.03 million during the quarter, compared to the consensus estimate of $234.99 million. During the same quarter last year, the firm earned $0.07 earnings per share. Credo Technology Group’s quarterly revenue was up 272.1% on a year-over-year basis. On average, analysts expect that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current fiscal year.

Insider Activity at Credo Technology Group

In other news, Director Sylvia Acevedo sold 2,200 shares of Credo Technology Group stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $159.18, for a total value of $350,196.00. Following the completion of the sale, the director owned 18,545 shares in the company, valued at $2,951,993.10. The trade was a 10.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Pantas Sutardja sold 1,875 shares of Credo Technology Group 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. This trade represents a 0.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 917,976 shares of company stock worth $136,567,647. Corporate insiders own 11.84% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

A number of large investors have recently modified their holdings of the company. JPMorgan Chase & Co. lifted its stake in shares of Credo Technology Group by 36.5% in the second quarter. JPMorgan Chase & Co. now owns 6,508,934 shares of the company’s stock valued at $602,662,000 after buying an additional 1,739,844 shares in the last quarter. Bank of America Corp DE raised its stake in shares of Credo Technology Group by 161.5% in the third quarter. Bank of America Corp DE now owns 2,278,073 shares of the company’s stock worth $331,710,000 after purchasing an additional 1,406,752 shares during the last quarter. Rafferty Asset Management LLC purchased a new position in shares of Credo Technology Group during the third quarter valued at approximately $183,553,000. Alliancebernstein L.P. grew its holdings in Credo Technology Group by 66.0% during the second quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company’s stock worth $283,778,000 after buying an additional 1,218,504 shares in the last quarter. Finally, Marshall Wace LLP raised its position in Credo Technology Group by 2,537.7% in the 3rd quarter. Marshall Wace LLP now owns 1,150,000 shares of the company’s stock valued at $167,452,000 after buying an additional 1,106,401 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors.

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.