Credo Technology Group (NASDAQ:CRDO) Shares Down 7.3% – Should You Sell?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) dropped 7.3% on Thursday . The stock traded as low as $110.68 and last traded at $114.48. Approximately 7,831,475 shares were traded during mid-day trading, an increase of 17% from the average daily volume of 6,669,645 shares. The stock had previously closed at $123.46.

Key Headlines Impacting Credo Technology Group

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: TensorWave partnership: Credo announced a deal to supply its ZeroFlap active electrical cables and optics into next‑generation AMD‑based AI clusters, a direct commercial win that helps convert Credo’s PCIe/retimer and high‑speed interconnect tech into deployments and revenues. TensorWave Partners with Credo
• Positive Sentiment: PCIe‑6 Toucan compliance: Credo’s Toucan PCIe 6.0 retimer passed PCI‑SIG compliance at 32.0 GT/s — a technical validation that lowers integration risk for hyperscalers and AI customers and strengthens Credo’s product credibility for data‑center rollouts. PCI‑SIG Compliance for Toucan
• Positive Sentiment: Momentum vs. legacy players: Recent writeups comparing CRDO to TXN highlight Credo’s faster AI‑fueled revenue growth and aggressive go‑to‑market in AI interconnects versus Texas Instruments’ scale — a narrative that supports upside expectations if Credo continues to convert design wins into shipments. CRDO vs. TXN: Which Semiconductor Stock Is the Better Buy?
• Neutral Sentiment: Competitive/industry moves: Marvell’s acquisition of Celestial AI (photonics/Photonic Fabric) raises the competitive bar for ultra‑high bandwidth AI fabrics; this is an industry development investors should watch but it’s not an immediate Credo revenue event. MRVL Celestial AI Acquisition
• Neutral Sentiment: Short‑interest note shows a reported increase but the published figures contain anomalies (zeros), so the data appears unreliable and shouldn’t be over‑interpreted without corroboration.
• Negative Sentiment: Valuation tension and concentration risk: Coverage around the TensorWave deal also flags valuation concerns and that Credo’s revenue is concentrated (Customer A exposure). Analysts warn of late‑cycle risk, potential margin pressure, and strategic vulnerability if hyperscalers accelerate moves to optical fabrics — all reasons investors may be trimming exposure. Credo TensorWave AI Deal Highlights Credo Q3 Preview (Seeking Alpha)

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Bank of America boosted their target price on shares of Credo Technology Group from $165.00 to $240.00 and gave the stock a “buy” rating in a research report on Tuesday, December 2nd. TD Cowen reiterated a “buy” rating on shares of Credo Technology Group in a research note on Tuesday, December 2nd. Mizuho raised their price target on Credo Technology Group from $165.00 to $225.00 and gave the stock an “outperform” rating in a report on Tuesday, December 2nd. Zacks Research lowered shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 2nd. Finally, Wolfe Research set a $240.00 price objective on shares of Credo Technology Group in a research note on Tuesday, December 2nd. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $209.29.

Credo Technology Group Trading Down 7.3%

The firm’s fifty day moving average price is $135.02 and its 200-day moving average price is $143.56. The company has a market cap of $20.68 billion, a P/E ratio of 100.42 and a beta of 2.65.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings results on Monday, December 1st. The company reported $0.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.49 by $0.18. Credo Technology Group had a net margin of 26.63% and a return on equity of 25.28%. The firm had revenue of $268.03 million during the quarter, compared to analyst estimates of $234.99 million. During the same quarter in the prior year, the business posted $0.07 earnings per share. The company’s quarterly revenue was up 272.1% compared to the same quarter last year. As a group, research analysts forecast that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Credo Technology Group news, COO Yat Tung Lam sold 370,000 shares of the company’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $153.19, for a total value of $56,680,300.00. Following the sale, the chief operating officer owned 400,000 shares in the company, valued at $61,276,000. This represents a 48.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CTO Chi Fung Cheng sold 55,000 shares of the firm’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $174.70, for a total transaction of $9,608,500.00. Following the sale, the chief technology officer owned 6,613,961 shares of the company’s stock, valued at approximately $1,155,458,986.70. This represents a 0.82% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 917,976 shares of company stock worth $136,567,647. 11.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Credo Technology Group

Hedge funds have recently added to or reduced their stakes in the business. NewEdge Advisors LLC grew its holdings in Credo Technology Group by 128.4% during the 1st quarter. NewEdge Advisors LLC now owns 7,066 shares of the company’s stock worth $284,000 after acquiring an additional 3,972 shares during the period. Goldman Sachs Group Inc. grew its position in Credo Technology Group by 63.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company’s stock worth $61,235,000 after purchasing an additional 589,151 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Credo Technology Group by 2.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company’s stock worth $12,480,000 after purchasing an additional 7,107 shares during the last quarter. Asset Management One Co. Ltd. grew its position in Credo Technology Group by 72.1% during the second quarter. Asset Management One Co. Ltd. now owns 2,595 shares of the company’s stock valued at $240,000 after buying an additional 1,087 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Credo Technology Group by 3.1% during the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 8,456 shares of the company’s stock worth $783,000 after purchasing an additional 256 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors and hedge funds.

About Credo Technology Group

Credo Technology Group, Inc (NASDAQ: CRDO) is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo’s product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.