Wall Street Is Watching Nvidia. I’m Watching Credo. Here’s My 2027 Price Target

Credo Technology Group (NASDAQ:CRDO | CRDO Price Prediction) sells the parts that connect AI clusters. That means active electrical cables (AECs), optical DSPs and retimers, plus silicon photonics chips since the Dust Photonics deal. Everyone watches NVIDIA (NASDAQ:NVDA).

I watch the company that links those GPUs together. Revenue for the first quarter of fiscal 2027 reached $479 million, up 115% year over year. The stock is up 46.69% this year at $211.07 but still sits well below its peak. Can Credo hit $350 in 2027?

What’s Holding Credo Back Right Now

Shares trade 31.6% below their 52-week high of $308.67. They are down 6.82% over the past month, even after a 25.45% rebound this week. Credo beat estimates in the September earnings report, but the details concerned investors.

GAAP gross margin fell to 64.5% from 68.2%. Stock-based pay came to $87.98 million. Management expects non-GAAP operating expenses to rise about 55%. Two customers made up 33% and 28% of revenue. And with a beta of 3.23, any dip in AI spending hits this stock hard.

Wall Street Sees 32.7% Upside. Our Model Says 15.0%

The consensus target is $280.10, meaning 32.7% upside. Analysts rate it 4 Strong Buy, 14 Buy, 1 Hold and 0 Sell. The base case targets $242.81, or 15.0% upside. The range runs from $193.32 in the bear case to $334.45 in the bull case, and the model’s confidence is high.

I think both views are too conservative. 95% of analysts are bullish, and earnings growth added 0.03 to our adjustment. The fiscal 2028 EPS estimate has risen to $9.7049 from $8.6909 90 days ago. Estimates keep having to catch up with the business.

Here’s What It Takes for Credo to Reach $350

Reaching $350 from today’s price of $211.07 would require a gain of 65.8%.

With forward EPS of $7.1551, a price of $350 meaning a forward P/E of 49x. Our base case already meaning 47x, so the bold target needs about 2x more multiple expansion.

Earnings growth makes that expansion easier to accept. Against fiscal 2028 EPS, $350 is about 36x. Management expects more than $600 million in optical revenue and more than 85% total revenue growth in fiscal 2027. Credo also joined the Bloomberg 500 on August 26. CEO Bill Brennan said “What’s different today is that we’re adding optics as another major growth engine.”

The main risk is a pause in hyperscaler spending, which a stock this volatile would feel right away. Credo is exactly the kind of non-chipmaker supplier that quietly wins from the AI expansion, and we covered seven of them, from power to cooling to networking, in a free report you can grab here.

Where Credo Trades Today vs Its Earnings Power

Credo trades at 29x forward EPS. That is cheap for a company whose fiscal 2026 revenue grew 205.7% to $1.335B. Its 52-week range runs from $86.48 to $308.67.

Since trading data begins in January 2022, the stock has returned 1,711.76%. At today’s multiple, there is room for the rerating that $350 needs.

Is $350 Realistic? Here’s My Take

Getting to $350 takes a 65.8% gain. I see it as a stretch that is still within reach.

Three things need to happen. Optical revenue has to clear $600 million. The 1.6T DSP has to start producing revenue on schedule. And non-GAAP net margin has to stay near 50%. A cut in hyperscaler capex or problems integrating Dust Photonics would halt it. Returns at this level shouldn’t be expected every year, but we’ve outlined the path for how Credo could reach $350 in 2027.

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