Wall Street May Be Underestimating This AI Chip Stock’s Next Growth Phase

Credo Technology Group (NASDAQ:CRDO | CRDO Price Prediction) makes the connectivity hardware inside AI data centers: active electrical cables, optical DSPs, silicon photonics chips and retimers that move data between GPUs and switches. CEO Bill Brennan says the portfolio “now spans connectivity from millimeters to kilometers, with solutions across optics and copper.”

Demand is strong. Fiscal Q1 2027 revenue rose 114.7% to $479 million. The stock has fell behind that growth. Shares are up just 4.88% year-to-date after a 30.98% one-month drop to $150.91, well below the 52-week high of $308.67.

That gap sets up a comeback question: can Credo hit $300 per share in 2027?

Wall Street Already Sees 88% Upside in Credo

The average analyst price target is $284.05, meaning 88% upside. Coverage includes 5 Strong Buy and 14 Buy ratings against just 1 Hold.

For fiscal 2027 (ending April 2027), analysts expect revenue of $2.50 billion, up 87%, and EPS of $6.3093, up 82%. Fiscal 2028 EPS estimates have rose from $9.0759 90 days ago to $9.7121, with 16 upward revisions against 1 down in the past 30 days.

Credo has also beaten EPS estimates 9 consecutive times, most recently posting $1.20 against a $1.17 consensus. That track record suggests actual results could keep landing ahead of forecasts.

Here’s the Math Behind $300 Per Share

At $150.91, Credo trades at 24x fiscal 2027 estimates and just 16x fiscal 2028 estimates. At $300, those multiples rise to 48x and 31x. That is a premium to the S&P 500’s forward multiple of roughly 21x to 23x, but reasonable for a company expected to grow EPS 54% in fiscal 2028.

What Could Push Credo to $300?

• Optical ramp: Management expects more than $600 million of optical revenue in fiscal 2027, with DSPs, silicon photonics PICs and ZeroFlap optics each exceeding $100 million.
• Margin strength: Fiscal 2027 revenue growth is guided to more than 85%, with non-GAAP net margin “in the vicinity of 50%.”
• 1.6T upgrade cycle: First 1.6T DSP revenue remains on track for later in fiscal 2027, and Brennan says “we’re quite bullish about the AEC opportunity” at those speeds.
• New franchises: Active LED Cables reach up to 30 meters, and OmniConnect could add “thousands of dollars of Credo content per GPU,” with both expected to start generating revenue in fiscal 2028.
• Near-term report: Fiscal Q2 guidance of $525 million to $535 million brackets the $531.9 million consensus, giving Credo another chance to beat expectations.

Credo Has Doubled Before, Twice

Reaching $300 requires a 99% gain. Credo has topped that in two of its last three full years: shares rose 245% in 2024 and 114% in 2025, after a 46% gain in 2023. A beta of 3.292 means the stock tends to amplify market moves in either direction.

At a market cap of roughly $28.36 billion, repeating those gains is harder. Customer concentration also matters, since the largest customer accounted for 33% of Q1 revenue.

My Take on Credo at $300

Hitting $300 would require Credo to nearly double in 2027. Wall Street already sees 88% upside, estimates are rising, and the beat streak stands at nine quarters.

If optical revenue ramps on schedule and hyperscaler spending holds, $300 is within reach. Credo is the kind of pick-and-shovel name behind the AI expansion that rarely makes the headlines (we covered seven more of these suppliers, from power to cooling to networking, in a free AI infrastructure report). Returns at this level are rare, but the drivers for outsized returns in 2027 are in place.

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