Why Is Credo Stock Surging On Tuesday?

Credo Technology Group (NASDAQ:CRDO) shares are trading higher on Tuesday, driven by a broader technology market recovery rather than specific corporate news. The Nasdaq composite index gained 1.52%, while the S&P 500 rose 0.71%. The technology sector led all market segments with an overall increase of 2.18%.

Analysts Lift Price Forecast

The upward movement follows several recent Wall Street upgrades for the AI connectivity chipmaker. On June 22, Stifel maintained its Buy rating on Credo and increased its price forecast to $350, while Evercore ISI Group initiated coverage with an Outperform rating and a $325 price forecast. On June 23, B of A Securities also maintained its Buy rating and raised its price forecast to $340.

Strong Fourth-Quarter Financials

The analyst updates trail Credo’s fiscal fourth-quarter earnings report from June 1, which showed revenue of $437 million, beating analyst estimates of $432.05 million. Adjusted earnings reached $1.16 per share against expectations of $1.03 per share. Total revenue increased 157% year-over-year, supported by $1.4 billion in cash and short-term investments.

Market Outlook and Expansion

BNP Paribas highlighted Credo’s expansion into both the Active Electrical Cables (AEC) and optical growth markets, estimating the company’s total addressable market above $10 billion.

Furthermore, social media posts on X recently resurfaced a two-week-old clip from the No Priors podcast in which Intel CEO Lip-Bu Tan discussed his investments in companies such as Credo and Astera Labs while highlighting interconnects as a potential bottleneck.

CRDO’s Key Technical Levels To Watch

From a longer-term trend perspective, CRDO is still in a powerful uptrend: it’s trading 9.7% above its 20-day SMA ($248.25) and 72.6% above its 200-day SMA ($157.84), which tells you buyers have consistently defended pullbacks. The 20-day SMA remains above the 50-day SMA, and the golden cross in May (50-day above 200-day) keeps the bigger-picture trend bias pointed higher.

Price is also approaching an area where rallies have recently run into supply, with the stock not far from its 52-week high zone (high at $308.67).

CRDO Stock Price Activity: Credo Technology Group shares were up 11.82% at $247.48 at the time of publication on Tuesday, according to Benzinga Pro data.

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