A Look At Credo Technology Group (CRDO) Valuation After Raised Revenue Guidance And PCIe 6.0 Product Milestones

Credo Technology Group Holding (CRDO) has drawn fresh attention after raising third quarter fiscal 2026 revenue guidance to US$404 million to US$408 million, along with announcing new PCIe retimer launches and PCI-SIG compliance for its Toucan PCIe 6.0 capable product.

See our latest analysis for Credo Technology Group Holding.

The raised guidance and PCIe product milestones come after a mixed price patch, with a 1 day share price return of 5.05% decline, a 30 day share price return of 6.83% decline, and a 90 day share price return of 19.54% decline, yet set against a 1 year total shareholder return of 105.99% and a very large 3 year total shareholder return that is around 11x. Taken together, these figures point to strong long term momentum despite recent pullbacks.

If this AI hardware story has caught your eye, it could be a good moment to see what else is moving in the sector through our list of 34 AI infrastructure stocks.

With Credo guiding to US$404 million to US$408 million in quarterly revenue and trading at US$124.06 after a sharp multi month pullback, is the current price still underestimating its AI infrastructure role, or has the market already priced in future growth?

Most Popular Narrative: 40.5% Undervalued

With Credo Technology Group Holding last closing at $124.06 against a most followed fair value estimate of $208.38, the narrative suggests a wide valuation gap that hinges on how the AI datacenter buildout plays out.

The massive surge in AI driven infrastructure buildouts has already led to extraordinary top line growth and high expectations for further hyperscaler investment, but the accelerated pace of current deployments could reflect pulled forward demand, creating risk of decelerating revenue as hyperscaler CapEx normalizes.

Read the complete narrative.

Curious what earnings ramp, margin profile, and valuation multiple need to line up for that fair value to hold? The narrative leans on punchy growth, higher profitability, and a rich future earnings multiple all working together, with little room for those assumptions to soften.

Result: Fair Value of $208.38 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on hyperscalers sticking with current spending plans and avoiding slower AEC or optical adoption, and on competitors not squeezing future margins more than expected.

Find out about the key risks to this Credo Technology Group Holding narrative.

Another View: Rich Multiples Tell a Different Story

The 40.5% undervaluation narrative sits awkwardly beside the current P/E of 105.7x, which is far above the US Semiconductor industry at 43x and peers at 65.2x. It also stands well above a fair ratio of 77.1x, which is where the market could eventually drift toward. If expectations cool even slightly, how much of that upside case is really left on the table?

To see how those valuation gaps look in numbers, See what the numbers say about this price — find out in our valuation breakdown. can help you line up Credo against peers and the fair ratio, so you can judge whether today’s premium feels justified to you.

Next Steps

If this mix of strong long term returns and rich current multiples leaves you undecided, take a closer look at the underlying data and act while the market is still reacting. Then weigh up the 2 key rewards and 3 important warning signs to see how the trade off looks to you.

Looking for more investment ideas?

If you are weighing what to do next after looking at Credo, do not stop here, the broader opportunity set could matter even more to your returns.

• Hunt for mispriced quality by scanning our list of 53 high quality undervalued stocks, where fundamentals and price line up in a way that might suit long term investors.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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