Analysts see significant upside in Credo Technology (CRDO)

What happened: Credo Technology (CRDO) posted Q3 FY2026 revenue of $407.01M, up 201.5% YoY, and EPS of $1.07, beating estimates. CEO Bill Brennan targeted three new multi-billion dollar TAM expansions. On April 13, CRDO announced a definitive agreement to acquire DustPhotonics for $750M to support silicon photonics capabilities. The stock rallied, up 6% after an upgrade, and 12.35% after expansion news, with analysts seeing significant upside.

Market impact: The data center and semiconductor sectors are affected. CRDO's strong Q3 results and expansion plans drove investor confidence, pushing the stock up. The acquisition of DustPhotonics further boosted CRDO's silicon photonics capabilities, benefiting its position in the high-growth data center market.

What to watch next: CRDO's Q4 FY2026 earnings, expected in late July, will provide insight into the company's growth trajectory. The acquisition of DustPhotonics is expected to close in Q2 FY2027, with potential synergies and revenue contributions to be monitored. Additionally, CRDO's progress in expanding into the three new multi-billion dollar markets will be crucial to follow.