Credo Technology stock surged to an all-time high on Tuesday as the company's data center customers ramp their AI installations.
The maker of high-speed data connectivity systems counts among its customers Amazon Web Services, Microsoft Azure and xAI, Mizuho Securities analyst Vijay Rakesh said in a client note Monday. He expects Credo to add a fourth major cloud service provider as a customer soon.
Rakesh reiterated his outperform, or buy, rating on Credo stock and raised his price target to 112 from 98.
On the stock market today, Credo stock rose 3.9% to close at 102.59. Earlier in the session, it reached an all-time high of 103.16.
Rakesh said his supply chain checks indicate a strong performance in Credo's current fiscal first quarter. And Credo's fiscal Q2 is tracking above consensus estimates for revenue, he said.
Credo's products include integrated circuits, active electrical cables, and serializer/deserializer (SerDes) chiplets. It also licenses its SerDes intellectual property.
The San Jose, Calif.-based company has seen its shares climb steadily since it delivered a beat-and-raise quarterly earnings report on June 2.
Credo stock is on at least two IBD lists: Tech Leaders and the MarketSurge Growth 250.
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