William Blair analyst Sebastien Naji has maintained their bullish stance on CRDO stock, giving a Buy rating yesterday.
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Sebastien Naji has given his Buy rating due to a combination of factors tied to Credo’s technology position and growth profile. He points to the recent patent licensing and settlement agreements, including the new deal with 3M, as evidence that Credo’s active electrical cable technology is both differentiated and defensible, reinforcing its status as an early leader in this segment. Although intellectual property licensing is still a small contributor to overall revenue, these agreements validate the strength of Credo’s innovation and underline sustained demand for energy‑efficient, copper‑based interconnect solutions in data centers.
Naji also emphasizes that, even at a valuation premium to peers, the stock’s multiple is justified by Credo’s superior growth outlook and operating leverage. He expects demand for copper-based connectivity to remain healthy for several years, noting that leading ecosystem players such as Nvidia continue to rely on copper in next‑generation deployments, which buys Credo time to scale its broader portfolio of retimers, optics, gearboxes, and microLED products. While he acknowledges competitive, supply chain, customer concentration, and technology transition risks, he views them as manageable relative to the company’s growth prospects and competitive advantages, supporting his Buy recommendation.
Naji covers the Technology sector, focusing on stocks such as Nvidia, Arista Networks, and Monolithic Power. According to TipRanks, Naji has an average return of 8.4% and a 53.19% success rate on recommended stocks.
In another report released yesterday, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $158.00 price target.