Latest news with #Credo
Yahoo
5 days ago
- Business
- Yahoo
Credo Technology Group Holding (NasdaqGS:CRDO) Sees US$37 Million Net Income Turnaround
Credo Technology Group Holding saw a significant share price increase of nearly 80% over the last quarter, coinciding with strong financial performance and strategic product introductions. The company's Q4 revenue grew to $170 million, with a net income turnaround to $37 million compared to a loss last year. Meanwhile, the launch of the PILOT platform and positive fiscal 2026 guidance potentially bolstered investor confidence. Despite market volatility driven by geopolitical tensions in the Middle East and mixed economic data, Credo's robust earnings report and innovative product developments likely offered a positive counterbalance, supporting its substantial stock price ascent. You should learn about the 2 risks we've spotted with Credo Technology Group Holding. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. The recent achievements of Credo Technology Group Holding, featuring substantial revenue growth and innovative product introductions, significantly influence the company's narrative. By venturing into PCIe products and AEC business, Credo is poised to diversify its revenue streams and amplify revenue growth potential. The promising fiscal 2026 guidance highlights anticipated earnings improvements, generally enhancing market sentiment regarding Credo's financial trajectory. Over the past three years, Credo's total shareholder return was very large, exemplifying substantial long-term share price gains. When compared to the previous year, Credo outshone the US Semiconductor industry, which returned 4.1%, and the broader US market, with a 10.9% gain, thus reflecting its compelling performance. The positive news regarding financials and product development may lead analysts to revise revenue and earnings projections upward. Forecasts suggest a robust revenue trajectory of 40.8% annual growth over three years, propelled by a strategic focus on PCIe and optical DSP technologies. While risks such as customer concentration persist, successful market adoption could ease these concerns. With the current share price at US$43.21, investors may see a 36% increase to the analyst-consensus price target of US$67.47, signaling potential upside if forecasts materialize as anticipated. Learn about Credo Technology Group Holding's future growth trajectory here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:CRDO. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
2 AI Growth Stocks That Could Help Set You Up for Life
Credo provides a lot of key components for upgrading AI-driven data centers. Arm's AI-optimized designs and new first-party chipmaking business could drive its long-term growth. Neither of these stocks is cheap, but they both deserve their premium valuations. 10 stocks we like better than Credo Technology Group › The artificial intelligence (AI) market has grown like a weed over the past decade. That rapid expansion -- which was fueled by more sophisticated cloud computing services, large language models, and generative AI applications -- lit a blazing fire under some high-growth tech stocks. The most obvious winners are Nvidia, the world's top producer of discrete graphics processing units (GPUs) for processing AI tasks; and Microsoft, which acquired a big stake in OpenAI and integrated the start-up's AI tools into its own services. But there are still plenty of other under-the-radar AI growth plays that might have more upside potential. Let's look at two of them: Credo Technology (NASDAQ: CRDO) and Arm Holdings (NASDAQ: ARM). Credo, which went public in 2022, sells a wide range of high-speed connectivity solutions for the data center, cloud, and AI markets. Its core products include data transfer chips, digital signal processors, line card components, and active electric cables for data centers. From fiscal 2022 to fiscal 2025 (which ended this May), Credo's revenue grew at a compound annual growth rate (CAGR) of 60%. It also turned profitable for the first time in fiscal 2025. Credo attributed that growth to the rapid expansion of the cloud and AI markets, which drove its hyperscale customers to aggressively upgrade their data center infrastructure. Its biggest customer -- widely believed to be Microsoft -- accounted for 39% of its revenue in fiscal 2024. That customer concentration isn't ideal, but it also isn't surprising considering how much Microsoft is prioritizing the expansion of its cloud and AI ecosystems. Its other major customers include Amazon and Tesla. From fiscal 2025 to fiscal 2027, analysts expect Credo's revenue to rise at a CAGR of 47% as its earnings per share (EPS) increase at a CAGR of 113%. That rapid growth could be driven by the continued expansion of the AI market, and a shift toward higher-speed ethernet connections that will spur demand for its new optical modules. There's also rising demand for its "chiplet" designs, which are more modular, customizable, and scalable than monolithic system on chips (SoCs), which merge together multiple chips on a single die. It isn't cheap at 64 times this year's earnings, but it could have plenty of room to run over the next few decades. Arm is a U.K. chip designer which was acquired by Japan's SoftBank in 2016 and spun off again in a second IPO in 2023. It develops power-efficient CPUs that consume less power than the x86 CPUs produced by Intel and AMD. That makes Arm's chips well-suited for smartphones, tablets, Internet of Things (IoT) gadgets, connected vehicles, and even some notebook computers and servers. Its chip designs are now installed in approximately 99% of the world's smartphones, and most of its growth over the past few years has been fueled by its AI-optimized Armv9 designs. Arm's revenue rose 24% in fiscal 2025 (which ended this March), and analysts expect that figure to grow at a CAGR of 21% over the next three years. Its EPS, which surged 159% in fiscal 2025, is expected to grow at a CAGR of 41% through fiscal 2028. Arm originally only generated its revenue by licensing its designs to chipmakers like Qualcomm, MediaTek, and Apple instead of producing its own chips. But earlier this year, it announced that it would start developing its own first-party chips and outsource its production to Taiwan Semiconductor Manufacturing. That surprising move would boost Arm's operating expenses and turn it into a direct competitor for some of its top clients. But it could also undercut other Arm-based chips because it doesn't need to pay any royalties or licensing fees for its own designs. Its first-party brand recognition could also make it a more appealing option than third-party Arm-based chips for OEMs. Arm's stock certainly isn't cheap at 113 times this year's earnings, but it could be a great long-term play on the market's growing demand for more power-efficient AI chips. Before you buy stock in Credo Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Credo Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon and Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Intel, Microsoft, Nvidia, Qualcomm, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 AI Growth Stocks That Could Help Set You Up for Life was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
Why Credo Technology Rocketed Higher This Week
Credo reported its fourth-quarter earnings this week, trouncing analyst estimates. Credo's active electrical cables are taking off for AI data centers. The company landed a third hyperscaler customer and anticipated two more this year. 10 stocks we like better than Credo Technology Group › Shares of data center connectivity company Credo Technology (NASDAQ: CRDO) rocketed 19.8% this week through Thursday trading, according to data from S&P Global Market Intelligence. Credo reported its fiscal fourth-quarter earnings report this week, posting triple-digit growth on the back of strong adoption of its data center connectivity solutions. Importantly, Credo also noted two more hyperscaler customers that would come online later this year, diversifying the company away from its main customer, Amazon. In its fiscal fourth quarter, Credo grew revenue a whopping 179.7% to $170 million, topping estimates by over $10 million, and also posted $0.35 in non-GAAP (adjusted) earnings per share, beating expectations by $0.08. Credo developed a novel type of data center cable called active electrical cables, which offer better copper connectivity over a longer distance and in a more "versatile" form factor than other solutions. Thus, AECs have been taking share from direct-attach cables and laser-based optical connections within AI data centers. As an AEC pioneer, Credo has benefited from the exploding demand for artificial intelligence data centers and connectivity. Amazon Web Services was an early adopter and made up 61% of Credo's revenue last quarter. However, Credo is now seeing wider adoption of its solutions, with Microsoft and Elon Musk's xAI growing to 12% and 11% of last quarter's revenue. Moreover, on the conference call, management noted two more "hyper-scalers" will become customers in the fiscal year ahead. Credo's management guided for 12% sequential growth in the current quarter, but given recent history, the company will probably beat those expectations handily. For their part, analysts expect 82.4% revenue growth in the year ahead. Shares now trade at roughly 50 times forward earnings, which accounts for all that growth ahead. So, Credo, unfortunately, is still quite expensive, even more so than other AI leaders. Nevertheless, it's hard to deny its strong growth prospects. The question, of course, is how long that strong growth lasts, because investors are now pricing in several years of it. Before you buy stock in Credo Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Credo Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Billy Duberstein has positions in Amazon and Microsoft. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why Credo Technology Rocketed Higher This Week was originally published by The Motley Fool
Yahoo
05-06-2025
- Business
- Yahoo
Is this S&P 500 stock a once-in-a-decade passive income opportunity?
The S&P 500 has recovered from its volatile start to the year and is within touching distance of its record highs. At the same time, some quality shares are trading at exceptionally low prices. One example is Johnson & Johnson (NYSE:JNJ). As a rule, I stay away from pharmaceutical stocks, but I'm considering making a rare exception for this one. Johnson & Johnson has recently divested its consumer products business. The company now generates around 66% of its revenues from pharmaceuticals and 33% from medical devices. The main reason I generally stay away from stocks like this is I don't feel like I can evaluate them accurately. I'm not a medical professional and that means I can't confidently evaluate drug pipelines. That makes it hard to work out which businesses have the best prospects. And in fairness to me, it's not always straightforward even for people who do have specialist expertise in this sector. Johnson & Johnson does have some competitive strengths in this area – most notably its scale and its exceptional balance sheet. But there's something else that stands out to me about the company. A key part of what makes Johnson & Johnson unique is its culture. And this is set out in the 'Credo' – a document, which states that the company's priorities are, in order: Doctors, patients, nurses, and users of its products Employees Communities Shareholders In other words, focus on putting customers first and doing the right thing and the returns will follow. This ethical outlook is a key part of what has allowed the business to survive and thrive over decades. A lot of businesses have codes of conduct or ethical frameworks. But there's evidence that Johnson & Johnson's Credo means its culture is more entrenched than it is at other companies. The firm's reaction to the 1982 Tylenol crisis is now a well-known case study in ethical leadership. And it doesn't take specialist medical knowledge to appreciate the significance of this. Right now, shares in Johnson & Johnson come with a dividend yield of around 3.25%. That doesn't exactly jump out as a passive income opportunity, but it's the highest it has been in the last 10 years. This is a sign investors are unusually pessimistic about a stock they normally hold in high regard. And a key reason for this is the situation in the US at the moment. The situation is still developing, but potential risks include slower drug approval processes and price controls. Neither of these would be good for companies like Johnson & Johnson. The risk is real, but this might be the kind of opportunity that comes around once in a decade. Given the company's long-term strengths, I think it's worth taking seriously. I think Johnson & Johnson's biggest unique strength is its culture. Even if I'm wrong, there's clearly a lot to like about a company that has more than 50 years of consecutive dividend increases. Most of the time, the stock market appreciates the quality of the business. But it's unusually cheap at the moment and on that basis, it's certainly one to consider right now. The post Is this S&P 500 stock a once-in-a-decade passive income opportunity? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
04-06-2025
- Business
- Business Wire
Credo to Present at 2025 Mizuho Technology Conference
SAN JOSE, Calif.--(BUSINESS WIRE)--Credo Technology Group Holding Ltd (Credo) (NASDAQ: CRDO), an innovator in providing secure, high-speed connectivity solutions that deliver improved reliability and energy efficiency, today announced that Bill Brennan, President and CEO, and Dan Fleming, CFO, are scheduled to present at the following upcoming investor conference. Conference: 2025 Mizuho Technology Conference Time: 1:20 p.m. ET Location: New York City, New York The presentation will be webcast live on Credo's IR website at The webcast replay will be available as soon as possible following the event on Credo's IR website. About Credo Credo's mission is to advance high-speed connectivity solutions that deliver optimized performance, reliability, energy efficiency, and security for the next generation of AI driven applications, cloud computing, and hyperscale networks. Optimized for both optical and electrical applications, our solutions support port speeds up to 1.6Tb. At the core of our technology is our proprietary Serializer/Deserializer (SerDes) IP. Our diverse solutions portfolio includes system-level products such as Active Electrical Cables (AECs), a range of Integrated Circuits, including Retimers, Optical DSPs, SerDes chiplets, and SerDes IP Licensing. For more information, please visit Follow Credo on LinkedIn.
