Credo Technology (CRDO, Financial) jumped more than 17% after Needham hiked its price target to $85, citing huge hyperscaler wins and a diversifying customer roster that propelled Q4 results.
The optical‐component maker saw revenue jump 126% in fiscal 2025 and now targets an 85% leap to over $800 million in fiscal 2026. Needham's N. Quinn Bolton notes Amazon (AMZN, Financial) still accounts for 61% of sales (down from 86% last quarter), while Microsoft (MSFT, Financial) and xAI contributions surged to 12% and 11%, respectively—up from negligible levels in Q3. Management expects to keep three-to-four customers above 10% of revenue through FY26, with Meta (META, Financial) and Oracle (ORCL, Financial) slated to join the hyperscaler list.
Credo also announced an 800G optical DSP design win for a major hyperscaler—potentially its biggest ever—that should ramp this year. The company showcased its new 3nm, 200G-per-lane DSP capable of 1.6Tb/s speeds with leading signal integrity and power efficiency, signaling continued investment in next-gen data-center connectivity.
Investors should care because Credo's shift from a single‐customer cadence toward a balanced hyperscaler base reduces concentration risk and underpins a steep growth trajectory as demand for 800G links explodes.
