Credo Technology Analyst Double Upgrades AI Play, Raises Forecast By Almost 200%

Group 1 - Credo Technology Group Holding Ltd (CRDO) shares surged nearly 40% in early trading, reflecting improved visibility into the company's growth in the latter half of the year [1] - Analyst Vivek Arya upgraded Credo Technology's rating from Underperform to Buy and raised the price target from $27 to$80, citing a "solid beat and material raise" in the recent quarter [1] - The outlook for Credo Technology indicates the beginning of a multi-year adoption cycle for its Active Electrical Cable (AEC) product, which supports power-efficient AI clusters [2] Group 2 - The earnings call addressed market concerns for AEC, highlighting key customers such as Microsoft Corp, Amazon.com Inc, and Tesla Inc, along with growing momentum in adjacent areas like optical DSP and retimer [2] - Credo Technology is expected to deliver strong results in the latter half of fiscal 2025, driven by significant AI growth at Amazon Web Services, a key customer and investor [3] - At the time of publication, shares of Credo Technology had increased by 49.24% to $71.34 [3]