CRDO Stock Forecast & Price Target

Credo Technology Group Holding Ltd is poised for substantial revenue growth, with FY26 revenue anticipated to increase by approximately 50% year-over-year, underscoring the firm's robust financial trajectory in the high-speed connectivity market. The company's total product revenue, comprising 96% of its F2Q25 sales, experienced a significant 20% quarter-over-quarter increase, driven by all primary product categories including Optical DSPs and Line Card PHYs, indicating strong demand across its product offerings. Furthermore, the optical DSP segment is projected to witness exceptional growth, with FY25 revenue expected to double year-over-year, reflecting the increasing adoption of its solutions among key customers in sectors such as networking, hyperscale, and artificial intelligence.

Credo Technology Group's dependence on Amazon, which accounted for 33% of revenue at $23.7 million—down from 52% in the previous quarter—indicates a concerning reliance on a single customer amidst declining revenues. Additionally, while the company saw diversification with four customers contributing 5%-10% of revenue, the forecast projects a sequential decline in revenue from its largest AEC customer, impacting overall sales performance. Furthermore, the company is anticipated to fall short in its IP License revenue expectations, potentially leading to negative ramifications for both product sales and corporate reputation due to poor management of essential customer relationships.