This stock has nearly 30% upside as AI data center demand grows, says Goldman

This stock has nearly 30% upside as AI data center demand grows, says Goldman

https://www.cnbc.com/2026/02/19/this-stock-has-nearly-30percent-upside-as-ai-data-center-demand-grows-says-goldman.html

Publish Date: 2026-02-19 06:47:00

Source Domain: www.cnbc.com

• Goldman Sachs initiated Credo Technology Group with a buy rating and set a 12-month price target of $165, indicating 29% upside from Wednesday’s close.
• Analyst James Schneider expects Credo to maintain competitive advantages due to its vertically integrated business model and superior price and performance versus competitors.
• Credo’s pioneering technology of Active Electrical Cables (AECs) provides cost-effective, high-bandwidth, and reliable connectivity in data centers, remaining dominant over competing technologies.
• Demand for data centers has surged, driven by the rising use of artificial intelligence, especially supporting high-speed, short-range connectivity.
• Although debates exist regarding copper versus optical networking, Schneider believes copper solutions will remain prevalent for the next five years, with Credo’s diversification into optical solutions offering potential long-term growth.