Credo Technology shares surged 18% in premarket trading after the semiconductor firm dramatically raised its revenue forecast. The company now expects fiscal Q3 sales of $404 million to $408 million, up 21% from prior guidance and smashing analysts' $341 million consensus estimate.

Barclays analysts called the pre-announcement a clear rebuttal to recent bearish sentiment, noting the stock had plunged 42% since December. The bank projects $425 million in Q4 revenue - nearly 18% above Wall Street expectations - fueled by increased business from Meta and new contracts with Oracle.

The upgrade suggests Credo trades at just 21 times projected 2027 earnings, a 35x discount to rival ALAB. Barclays maintained its Overweight rating and $260 price target, arguing the market has mispriced Credo's growth potential in AI infrastructure and cloud computing markets.