Credo Technology Has Fallen 30% Since June 22. Its Forward Estimates Have Not Followed

July 26, 2026 - 22:45

Credo Technology shares have lost about 30% of their value since closing at $302.52 on June 22. The decline has been steady, but something unusual is happening beneath the surface. During the back half of that slide, not a single forward estimate line moved lower. Analysts actually kept raising their price targets into the drop.

That disconnect raises questions. Typically, when a high-growth semiconductor stock falls this hard and this fast, the sell-side responds by cutting revenue or earnings forecasts. That has not happened here. Instead, the forward estimates for Credo have remained flat or even ticked higher, suggesting the sell-off may be more about market rotation or sector sentiment than a deterioration in the company's fundamentals.

Credo specializes in high-speed connectivity solutions for data centers and AI infrastructure. Demand for those products remains strong, and the company has been gaining design wins with major cloud customers. The stock's recent weakness appears to be driven by broader tech selling and profit-taking after a massive run earlier this year.

Some analysts argue the pullback has created an entry point. They point to the unchanged estimates as evidence that the business is still on track. Others caution that the stock still trades at a premium multiple, and that the market may be pricing in a slower second half of the year.

For now, the numbers have not changed. The question is whether the stock price will eventually catch up to the estimates, or whether the estimates will eventually catch down to the stock.