Credo Technology Group is projected to report consensus revenue of $433.3 million and adjusted EPS of $1.03, while the stock currently trades at $236.03, nearly 11% above the average analyst price target of $213.15. Investors are primarily focused on the company's non-GAAP gross margin guidance, which is expected to land between 64% and 66% as the company scales.
This growth is largely fueled by the aggressive adoption of Active Electrical Cables (AECs) by U.S. hyperscalers to meet AI infrastructure demands. Analysts are also watching for the commercial ramp of ZeroFlap optics and 200G per lane solutions, which are critical to Credo’s transition into a broader AI connectivity platform.