Credo Technology price target raised to $30 from $28 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Credo Technology (CRDO) to $30 from $28 and keeps a Buy rating on the shares. Connectivity peer Astera Labs’ (ALAB) IPO last month demonstrates the power of AI, the firm says. Astera’s valuation has certainly benefited from having about the highest exposure to AI among any hardware tech/semi company, driven by its strong position in the PCIe protocol. Credo started its connectivity journey with the Ethernet protocol and has considerable AI-related exposure, Craig-Hallum also notes. As Credo sees increasing exposure to AI, the firm would not be surprised to see its valuation converge with Astera’s. Craig-Hallum continues to view Credo as a better risk/reward play on connectivity themes that intersect with AI.