Credo Technology Group (NASDAQ:CRDO) Shares Gap Up – Should You Buy?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) gapped up prior to trading on Tuesday . The stock had previously closed at $123.41, but opened at $141.08. Credo Technology Group shares last traded at $135.5290, with a volume of 5,171,689 shares.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Credo issued preliminary Q3 revenue of $404–$408M, well above prior guidance and consensus, prompting the company to update its outlook and schedule a Q3 results call — an upside surprise that directly supports the stock’s rally. Credo Provides Preliminary Third Quarter Fiscal Year 2026 Revenue Results
• Positive Sentiment: Analysts and trade press point to strong demand from hyperscalers and AI networking as the driver of the beat — indications that product ramps and large-customer traction are accelerating. CRDO Up on Preliminary Q3 Revenue Beat
• Positive Sentiment: Market coverage and headlines (Schaeffers, Benzinga, Investing.com) show active flows and heavy pre-/after-hours interest — momentum traders and event-driven funds are buying into the beat. Chip Stock Extends Rebound on Preliminary Revenue Beat
• Neutral Sentiment: Earnings still haven’t been formally reported — the preliminary revenue range is encouraging but subject to final Q3 results, detailed margin and EPS disclosure when the company reports in March. Credo Provides Preliminary Third Quarter Fiscal Year 2026 Revenue Results
• Negative Sentiment: Some analysts warn the prior pullback reflected an expectation reset and non-linear hyperscaler ramps — the stock remains exposed to volatile order timing, and upside can be concentrated in a few large customers. Credo’s Pullback Created A Rare Setup
• Negative Sentiment: Valuation risk: commentary highlights potential EV/sales multiple compression even as revenue scales (analysts model rapid revenue growth toward FY27), so upside depends on sustained margin and revenue execution. Credo Technology: The Market Has Given A Chance To Load Up (Earnings Preview)

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on CRDO shares. Susquehanna lifted their price objective on shares of Credo Technology Group from $165.00 to $175.00 and gave the stock a “positive” rating in a research note on Wednesday, October 22nd. TD Cowen reiterated a “buy” rating on shares of Credo Technology Group in a research note on Tuesday, December 2nd. Bank of America increased their price objective on Credo Technology Group from $165.00 to $240.00 and gave the company a “buy” rating in a report on Tuesday, December 2nd. Rosenblatt Securities began coverage on Credo Technology Group in a report on Wednesday, January 21st. They set a “neutral” rating and a $170.00 target price for the company. Finally, Needham & Company LLC increased their price target on shares of Credo Technology Group from $190.00 to $220.00 and gave the stock a “buy” rating in a report on Tuesday, December 2nd. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $212.69.

Credo Technology Group Price Performance

The firm has a market cap of $25.05 billion, a PE ratio of 120.64 and a beta of 2.65. The business’s 50 day moving average price is $144.08 and its 200 day moving average price is $142.69.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings data on Monday, December 1st. The company reported $0.67 EPS for the quarter, beating the consensus estimate of $0.49 by $0.18. The firm had revenue of $268.03 million during the quarter, compared to the consensus estimate of $234.99 million. Credo Technology Group had a return on equity of 25.28% and a net margin of 26.63%.The firm’s revenue was up 272.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.07 EPS. As a group, analysts predict that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current year.

Insiders Place Their Bets

In other Credo Technology Group news, CEO William Joseph Brennan sold 50,000 shares of the company’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $153.16, for a total value of $7,658,000.00. Following the completion of the sale, the chief executive officer directly owned 1,892,502 shares in the company, valued at $289,855,606.32. This represents a 2.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CTO Chi Fung Cheng sold 55,000 shares of the firm’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $174.70, for a total transaction of $9,608,500.00. Following the sale, the chief technology officer owned 6,613,961 shares of the company’s stock, valued at approximately $1,155,458,986.70. The trade was a 0.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 917,976 shares of company stock valued at $136,567,647 in the last ninety days. 11.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Credo Technology Group

Several large investors have recently modified their holdings of the business. Atlantic Union Bankshares Corp purchased a new stake in Credo Technology Group in the third quarter valued at approximately $25,000. Crewe Advisors LLC lifted its holdings in Credo Technology Group by 163.1% during the 4th quarter. Crewe Advisors LLC now owns 171 shares of the company’s stock worth $25,000 after buying an additional 106 shares in the last quarter. First Horizon Corp purchased a new position in Credo Technology Group in the 3rd quarter valued at approximately $26,000. Pinpoint Asset Management Singapore Pte. Ltd. acquired a new position in shares of Credo Technology Group in the second quarter worth $27,000. Finally, Flagship Harbor Advisors LLC purchased a new stake in shares of Credo Technology Group during the fourth quarter worth $32,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

About Credo Technology Group

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.