A Seeking Alpha analyst issues a "cautious Buy" rating for Credo Technology. The analyst sets a fiscal year 2029 price target of $274 per share. Strong performance in Credo's core AI connectivity business supports this outlook. Revenues in the segment increased 115% year-over-year. This occurred in the first quarter of fiscal 2027.
The investment thesis also highlights significant potential from Credo's new OmniConnect memory-connectivity platform. This technology could eventually add $2,000 to $3,000 in revenue per GPU. This potential upside was not factored into the primary valuation. Its early stage of deployment explains this exclusion. The analysis notes potential risks. These include high stock-based compensation and customer concentration.