Prediction: The AI Stock Wall Street Could Be Underestimating for 2027 Vandita Jadeja Wed, November 11, 2026 at 9:33 AM EST 5 min read CRDO +7.77% ^GSPC +0.86% Trade CRDO on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Credo Technology (CRDO) tumbled 16% to about $115, yet Wall Street's $284 average target implies roughly 148% upside, with 19 of 20 analysts bullish.
At $200, Credo would trade near 21x fiscal 2028 earnings, matching the S&P 500's multiple despite expected 85% revenue growth and 50% net margins.
Management expects more than $600 million in optical revenue in fiscal 2027, and Bill Brennan says "AECs continue to grow, optics is growing faster."
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Credo Technology (NASDAQ:CRDO) makes the connections that keep AI clusters running. Active Electrical Cables (AECs) are still its biggest business, but Chief Executive Bill Brennan says the portfolio now reaches "from millimeters to kilometers, with solutions across optics and copper."
The stock hasn't kept pace with the business. Shares dropped 16.08% today to $114.56. That came after a 35.76% drop over the month ending November 4. Here's what Credo needs to do to reach $200 in 2027.
Wall Street's average price target of $284.05 implies about 148% upside. Of the analysts covering the stock, 5 rate it Strong Buy, 14 rate it Buy and only 1 rates it Hold. Their EPS estimates are also rising.
Over the past 90 days, the fiscal 2027 consensus went from $6.1262 to $6.3093, and the fiscal 2028 consensus went from $9.0759 to $9.7121. Analysts expect revenue to reach $3.88 billion in fiscal 2028.
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At today's price, Credo trades at about 18x fiscal 2027 earnings and 12x fiscal 2028 earnings. At $200, the fiscal 2028 multiple would be roughly 21x. That's close to the S&P 500's forward multiple of around 21x to 23x, even though management expects more than 85% revenue growth in fiscal 2027 and a non-GAAP net margin near 50%.
Earnings beat streak: Credo has beaten EPS estimates for 8 consecutive quarters. Last quarter it posted $1.20, beating the $1.17 estimate.
Optics growth: Management expects more than $600 million in optical revenue in fiscal 2027. It expects ZeroFlap optics, silicon photonics PICs and optical DSPs to each bring in over $100 million. In Brennan's words, "AECs continue to grow, optics is growing faster."
Sequential growth: Second-quarter guidance calls for $525 million to $535 million in revenue. Analysts expect $643 million the following quarter.
New markets: Revenue from Active LED Cables (ALCs) and OmniConnect is expected to start in fiscal 2028. Management says OmniConnect could add "thousands of dollars of Credo content per GPU."
Reaching $200 would take a gain of about 75%. Credo has done more than that recently. Shares rose from $104.75 in March 2026 to $227.76 in September, a gain of 117%.
Since January 2022, the stock is up 1,071.67%. Over the past 52 weeks it has traded between $86.48 and $308.67. With a beta of 3.292, it can swing hard in either direction.
Customer concentration is the main risk. The company's biggest customer accounted for 33% of revenue last quarter. Still, estimates keep rising, Credo keeps beating them, and optics is becoming a second growth engine.
Credo isn't a chipmaker, it's one of the connectivity suppliers quietly powering the AI data-center expansion (we profiled seven companies in that same category, covering everything from electricity and thermal management to networking, in a free report you can grab here).
At $200, the stock would still trade at a modest multiple on fiscal 2028 earnings. This is the plan for how Credo could post outsized gains in 2027, though such gains in one year are rare.
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