BNP Paribas Stays Bullish on Credo Stock as AI Connectivity Demand Grows

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BNP Paribas analyst Karl Ackermann maintained a positive outlook on Credo Technology, expecting it to remain a key beneficiary of the AI infrastructure buildout. Ackermann cited the adoption of Credo's copper and optical connectivity solutions by hyperscalers, noting that products such as Active LED cables and OmniConnect gearboxes have tripled Credo's total addressable market to over $10 billion in just 18 months. He highlighted that Credo is involved with five of the six largest cloud computing companies, including Amazon, Microsoft, Meta, Oracle, and xAI, a subsidiary of SpaceX. The analyst also pointed to emerging Neocloud providers, estimated to account for 20% of Credo's revenue over time, aligning with CEO Bill Brennan's confidence that Neocloud could approach 20% of the firm's revenue. Credo reported record fourth-quarter fiscal 2026 revenue of $437 million, up 157% year-over-year, and non-GAAP EPS of $1.16, beating consensus. For the next quarter, CFO Daniel Fleming stated that revenue of $465 million to $475 million and a gross margin of 67% to 69% is expected. Wall Street analysts rate the stock a Strong Buy, with a mean price target of $277.47 and a Street-high target of $350.

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