Shares of Credo Technology Group Holding Ltd (NASDAQ:CRDO) surged 5.44% in the pre-market session on Wednesday, driven by optimism surrounding the company's growth prospects fueled by robust demand for its high-speed connectivity solutions from the booming artificial intelligence (AI) industry.

Credo Technology, a leading provider of high-speed connectivity solutions for optical and electrical Ethernet applications, is well-positioned to capitalize on the increasing adoption of AI technologies across various industries. As AI workloads grow in complexity and scale, the demand for power-efficient and high-speed connectivity solutions is expected to rise, playing into the company's strengths.

Analysts at Mizuho Securities remain bullish on Credo Technology, raising their price target on the stock to $85 from $70 and maintaining an "Outperform" rating. The firm cited the company's focus on enabling power-efficient AI clusters as a key driver of its recent success, aligning with the broader industry trend of data centers seeking to optimize energy consumption while scaling AI capabilities.