New York, Feb 12, 2026, 17:58 EST — After-hours
- Credo Technology slipped 5.2% to $121.78 as the session wound down Thursday.
- Wall Street unloaded tech and chip stocks, sending shares lower just before Friday’s U.S. inflation report.
- Credo’s next key event: its quarterly report and guidance on March 2.
Credo Technology Group Holding Ltd shares slipped 5.2% to $121.78 Thursday, having bounced from $121.70 up to $131.79 during the session.
Shares slipped alongside a wider pullback in tech, with the Nasdaq falling roughly 2% and the Philadelphia SE Semiconductor index losing 2.5%. Traders sat tight ahead of Friday’s U.S. consumer price index release. “We see this as a ‘prove it’ year for AI,” said Jack Herr, primary investment analyst at GuideStone Funds. (Reuters)
Credo surged into focus this week, preannouncing fiscal third-quarter revenue between $404 million and $408 million—well ahead of its earlier $335 million to $345 million outlook. The company is also projecting mid-single-digit sequential growth next quarter. These numbers are still preliminary and unaudited, according to Credo, which aims to release its full results after the bell on March 2. (SEC)
On Tuesday, the company reported a fresh milestone: its Toucan PCIe 6.0-capable retimer achieved PCI-SIG compliance at 32.0 GT/s, marking a key measure of interoperability for PCIe—the tech that connects chips and cards inside servers. “PCIe retimers are playing a critical role,” said Vishal Shah, Credo’s product vice president. Al Yanes, president and chair of PCI-SIG, noted the group “recognize[s] Credo” for passing compliance tests. (Credo Technology Group)
Barclays analysts led by Tom O’Malley described the latest guidance as evidence the stock’s recent drop had “gone too far.” Credo is now trading at what they call a “35x discount to ALAB,” their shorthand for Astera Labs. The team kept their overweight rating and $260 price target unchanged, pushing back against bearish sentiment around co-packaged optics — those optical links that move closer to the chip to reduce power and wiring — and the active electrical cable space, calling the skepticism “flawed.” (Investing)
The stock’s valuation is already baking in more gains, but just beating revenue won’t be enough next time around. Any sign that hyperscaler spending slows, or if customers pivot quicker than anticipated to optical links, and that growth trajectory could lose its edge.
Product mix is another key point for Credo. Investors are tuned in for specifics on demand for its copper-based active electrical cables (AECs)—those high-speed cables with built-in electronics—as well as the company’s newer retimers, now getting attention in dense AI rack setups.
Next, traders are watching for Friday’s U.S. inflation numbers before the open. Credo’s results and guidance, due March 2, are expected to shape sentiment for the following session—and likely the rest of the week.
