The Credo Selloff Could Be a Huge Buying Opportunity: Analysts Still See $300+.
Credo just posted triple-digit revenue growth and its eighth straight earnings beat, then watched shares crater nearly 19%. Before you write off the damage, consider what analysts say happens next.
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Credo (NASDAQ:CRDO | CRDO Price Prediction) just delivered one of the cleanest AI infrastructure earnings reports of the cycle, then watched its stock get taken apart. Revenue of $479 million grew 114.73% year over year, the eighth straight EPS beat landed, and management guided Q2 to $525 million to $535 million. Shares still fell 18.82% over the past week.
CEO Bill Brennan told investors Credo’s portfolio now spans connectivity “from millimeters to kilometers, with solutions across optics and copper.” So the question I want to answer: can Credo actually reach $300 per share by 2027?
Why Credo Shares Cratered After a Blockbuster Beat
Let me be blunt. This selloff is about positioning and expectations. Credo entered earnings after a monster run, with the stock printing $308.67 at its 52-week high and trading near $249.89 a month ago. The revenue beat of 1.83% was tight versus prior blowouts like Q2 FY26’s 14.06% topline surprise, and buyside models had already priced in a bigger number.
As Barron’s noted, the stock plunged despite the beat as analysts weighed in. Add a beta of 3.228, and any expectations reset gets amplified. Shares are still up 16.58% year to date and 13.71% over one year. The panic looks like profit-taking.
Wall Street Sees 68% Upside. My Case Goes Higher
The Street consensus price target sits at $281.39, implying roughly 68% upside from here. Coverage skews aggressively bullish: 4 Strong Buy, 14 Buy, and 1 Hold, with zero sells and analyst sentiment logging 95% bullish.
Our internal model is more measured, pegging a base case of $205.52 with high confidence at 0.9, an optimistic path to $332.48, and a conservative floor at $167.21.
I think the base case is too cautious. Forward EPS estimates for fiscal 2028 have been revised from $8.6228 ninety days ago to $9.6260 today. That is not a company decelerating.
Path to $300 Per Share
Reaching $300 from today’s price of $167.75 would require a gain of 78.8%. With forward EPS of $4.31, a price of $300 implies a forward P/E of 70x. Our base case of $205.52 already implies 41x, meaning $300 requires roughly 29x of additional multiple expansion. That sounds steep until you look at the growth.
Management guided fiscal 2027 revenue growth of more than 85% year over year, with optical alone expected to top $600 million. The 247Factor adjustment of 1.179 reflects sector momentum of 1.15 and 95% bullish analyst consensus.
Brennan called fiscal 2027 “just a stepping stone” for the optical business, with Active LED Cables framed as a “big multi-billion dollar opportunity.” If FY28 EPS lands near $9.626, $300 collapses to roughly 31x forward, entirely reasonable for a company doubling revenue. Customer concentration remains the single biggest risk, with the top customer at 33% of Q1 revenue.
Where Credo Trades vs Its Earnings Power
At $167.75, Credo trades at roughly 39x forward EPS of $4.31. That looks expensive on the surface. It looks a lot cheaper when you overlay 205.68% full-year revenue growth in fiscal 2026 and forward EPS revisions moving up, not down.
Shares sit well off the 52-week high of $308.67 and comfortably above the low of $86.48. The five-year return of 1339.91% tells you what happens when the market finally recognizes AI infrastructure exposure. This dip creates the entry point.
Is $300 Realistic? My Verdict
Reaching $300 requires a 78.8% gain from here, and I think it is achievable, though not automatic. Three things need to go right. First, Credo must execute on the optical ramp, particularly 1.6T DSP revenue landing later in fiscal 2027.
Second, forward EPS estimates need to keep drifting higher toward $9.6260 for fiscal 2028.
Third, the market has to reward the vertically integrated story with a growth multiple rather than a cyclical one. Credo sits inside the same picks-and-shovels bucket we mapped out in a free report on seven AI infrastructure names beyond the chipmakers.
What derails it? A hyperscaler pause or a loss of share at the top customer. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Credo could reach $300 in 2027.
Contact [email protected] for any questions or corrections.
Vandita Jadeja is a financial publisher with over a decade of experience writing about financial topics, including investment, savings, retirement, insurance and banking. Vandita is a Chartered Accountant who loves to debunk financial concepts for readers.
Her work has appeared on sites that include The Motley Fool, InvestorPlace, and Benzinga. She covers investing and focuses on stock picks and price prediction for 24/7 Wall St.
When not looking for the next stock investment opportunity, she can be found traveling, reading, chasing sunsets and enjoying her iced latte.
