"Credo ( NASDAQ: CRDO) has been one of the most explosive semiconductor names in the AI hardware space, and expectations for its Q1 FY2026 results reflect that. Analysts are calling for 801% EPS growth and over 200% revenue growth, led by demand for its high-speed connectivity solutions across hyperscaler and data center customers. The stock is up 147% over the past 6 months and large account repeat orders, and product roadmap updates will determine whether Credo can support its premium multiple."
"2. Gross Margin StabilityRapid revenue expansion can mask margin volatility. Watch for any shift in gross margin guidance or mix impact from specific large accounts. 3. Design Wins & Product PipelineAny updates on new design wins - particularly with tier-one cloud providers - would be viewed positively. Investors are tracking new transceiver and DSP adoption. 4. Competitive LandscapeManagement flagged tailwinds from optical transition and faster Ethernet cycles. Watch for references to Broadcom, Marvell, or other key competitors."
Q1 EPS is expected at $0.36 versus $0.04 year-over-year, an 801% increase, while revenue is projected to rise to $190.6 million, more than tripling year-over-year. Growth is driven by demand for high-speed connectivity solutions from hyperscalers and data center customers tied to AI infrastructure upgrades. The stock has gained 147% over six months, and the Street price target of $109.50 trails the current $125.41 share price, creating a high expectations bar. Key items to monitor include customer order trends, gross margin stability, design wins and product pipeline, competitive dynamics, and FY26 guidance reinforcement.
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