Credo Technology Group Holding Ltd. (NASDAQ:CRDO) stock jumped nearly 9% in Wednesday’s premarket trading as semiconductor and artificial intelligence infrastructure stocks rebounded.
Nasdaq futures rose 1.60%, while S&P 500 futures gained 0.70%, signaling improved investor sentiment.
Credo shares have fallen more than 35% over the past month amid concerns about data center spending and broader market uncertainty.
The rebound suggests investors may be buying the dip following the sharp sell-off.
Credo’s Strong Growth Supports Recovery
Credo provides high-speed connectivity solutions for AI data centers, cloud computing and hyperscale networks.
The company’s products include active electrical cables, optical transceivers and networking components.
Credo reported 115% revenue growth to $479 million in its fiscal first quarter, highlighting strong demand for its connectivity products.
Meanwhile, Wall Street expects continued growth.
Analysts forecast earnings of $1.29 per share for the upcoming report, compared with 67 cents a year earlier.
Revenue is expected to reach $531.87 million, up from $268.03 million a year earlier.
The company’s next earnings report is estimated for Nov. 30.
Analysts maintain a consensus Buy rating on Credo, with an average price forecast of $280.17.
Rosenblatt maintained its Neutral rating with a $235 price forecast on Oct. 15. Stifel maintained its Buy rating but lowered its price forecast to $310 on Oct. 5. Mizuho also reduced its forecast to $245 while maintaining an Outperform rating on Sept. 21.
CRDO Stock Faces Key Technical Resistance
Despite Wednesday’s rebound, Credo remains 18.11% lower over the past year.
The stock trades 9.5% below its 20-day simple moving average of $154.78 and 22.5% below its 200-day average of $180.74.
Its moving averages remain in a bearish pattern. The MACD indicator also signals weak momentum.
Traders are watching resistance near $142 and support around $124.50.
A sustained move above resistance could strengthen the recovery. However, failure to hold recent gains could renew selling pressure.
CRDO Stock Price Action
Credo shares rose 8.55% to $140.90 in Wednesday’s premarket trading, according to Benzinga Pro data.
Image via Shutterstock
