Evercore ISI just put a spotlight on one of the lesser-known names in AI infrastructure. The investment firm initiated coverage of Credo Technology Group (NASDAQ: CRDO) with an Outperform rating and a $325 price target, betting that the company’s high-speed connectivity products will be indispensable as AI data centers scale up.
The thesis is straightforward: AI models need faster connections between chips, and Credo makes the cables that handle that traffic. Specifically, the company’s Active Electrical Cables, or AECs, are copper-based connections purpose-built for the kind of high-bandwidth, low-latency data movement that AI workloads demand.
The growth numbers behind the call
Evercore analyst Mark Lipacis is modeling 100% revenue growth for Credo’s AEC solutions in calendar year 2026, then projects 60% growth the following year in 2027.
The earnings projections are equally aggressive. Lipacis estimates Credo could hit earnings per share north of $13 by 2028. That figure would land roughly 40% above where current Wall Street consensus sits.
