Credo Technology stock notched an all-time high on Wednesday amid strong demand for its high-speed connectivity systems for data centers.
On the stock market today, Credo stock rose 7.4% to close at 85.59. Earlier in the session, it hit a record high of 86.84.
With the advance, it broke out of a cup-with-handle base at a buy point of 80.99, according to IBD analysis.
Credo went public in January 2022 with its IPO priced at $10 a share.
Before the market open Wednesday, TD Cowen analyst Joshua Buchalter reiterated his buy rating on Credo stock and raised his price target to 95 from 85.
Buchalter called Credo his "Best Smidcap Idea for 2025." Smidcap refers to stocks with market capitalizations in the small- and midcap range.
"Despite significant progress to date, we think there's plenty more runway to Credo's story tied to high-speed connectivity for data-center AI," Buchalter said in a client note. "Underpinned by its industry-leading SerDes IP (serializer/deserializer intellectual property), we view Credo's growth story as early, open-ended, and diversifying."
Credo Is On Tech Leaders List
Credo's suite of products includes active electrical cables, optical digital signal processors (DSPs) and connectivity-related chipsets. Its rivals include Astera Labs, Broadcom and Marvell Technology.
A potential catalyst for Credo stock is the forthcoming official launch of the company's 3-nanometer optical DSP, Buchalter said.
Credo stock is on the IBD Tech Leaders list. Further, the company was recently featured in IBD's New America section.
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