Credo Technology Stock To $199?

Credo Technology (CRDO) stock has jumped 5.6% during the past day, and is currently trading at $151.66. Our machine-driven multi-factor assessment suggests that it may be time to buy more shares of CRDO stock. We have, overall, a positive view of the stock, and a price of $199 may not be out of reach. We believe there is not much to fear in CRDO stock given its overall Very Strong operating performance and financial condition. Hence, despite its Very High valuation, the stock appears Attractive but Volatile.

Below is our assessment:

CRDO stock has jumped meaningfully recently and we currently find it attractive but volatile. While this may feel like an opportunity, there is significant risk in relying on a single stock. On the other hand, there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Let us ask you this: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed – the S&P 500, S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.

Let’s get into details of each of the assessed factors but before that, for quick background: With $26 Bil in market cap, Credo Technology provides high-speed connectivity solutions for optical and electrical Ethernet applications, including integrated circuits, active electrical cables, SerDes chiplets, and SerDes IP licensing.

[1] Valuation Looks Very High

This table highlights how CRDO is valued vs broader market. For more details see: CRDO Valuation Ratios

[2] Growth Is Very Strong

• Credo Technology has seen its top line grow at an average rate of 74.4% over the last 3 years
• Its revenues have grown 176% from $218 Mil to $600 Mil in the last 12 months
• Also, its quarterly revenues grew 273.6% to $223 Mil in the most recent quarter from $60 Mil a year ago.

This table highlights how CRDO is growing vs broader market. For more details see: CRDO Revenue Comparison

[3] Profitability Appears Strong

• CRDO last 12 month operating income was $113 Mil representing operating margin of 18.9%
• With cash flow margin of 21.1%, it generated nearly $126 Mil in operating cash flow over this period
• For the same period, CRDO generated nearly $125 Mil in net income, suggesting net margin of about 20.8%

This table highlights how CRDO profitability vs broader market. For more details see: CRDO Operating Income Comparison

[4] Financial Stability Looks Very Strong

• CRDO Debt was $16 Mil at the end of the most recent quarter, while its current Market Cap is $26 Bil. This implies Debt-to-Equity Ratio of 0.06%
• CRDO Cash (including cash equivalents) makes up $480 Mil of $905 Mil in total Assets. This yields a Cash-to-Assets Ratio of 53.0%

[5] Downturn Resilience Is Moderate

CRDO saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• CRDO stock fell 62.0% from a high of $19.36 on 14 February 2023 to $7.35 on 4 May 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 15 December 2023
• Since then, the stock increased to a high of $172.31 on 18 September 2025 , and currently trades at $151.66

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read CRDO Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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