Goldman Sachs Buys In To Credo Tech's AI Data Center Play

Goldman Sachs has launched coverage of Credo Technology Group Holding (CRDO), assigning it a 'Buy' rating and establishing a $165 price target, implying a potential 30% upside as of Wednesday's closing price.

The firm highlighted CRDO's focus on short-distance, high-speed wired connectivity products used inside data centers, specifically its role in advancing Active Electrical Cables (AECs), copper-based cables equipped with signal-enhancing components.

Analyst James Schneider emphasized that AECs provide lower cost, high bandwidth connections with high reliability and are expected to continue proliferating.

Growth in the AI data center market is driving demand for networking hardware, benefiting suppliers such as CRDO. Goldman Sachs expects copper-based systems to remain widely adopted for several years.