Latest news with #CredoTechnology
Yahoo
a day ago
- Business
- Yahoo
Why Credo Technology Stock Was Marching Higher This Week
An analyst raised his price target on the highly specialized tech company. He maintained his buy recommendation as he did so. 10 stocks we like better than Credo Technology Group › Data center connectivity solutions company Credo Technology (NASDAQ: CRDO) won attention from many stock market participants this week, thanks in no small part to an analyst flagging it as a top pick in the small and mid-cap categories. With this pleasant tailwind at its back, Credo's share price was a robust 16%-plus higher as of late Thursday night, according to data compiled by S&P Global Market Intelligence. The pundit behind the price target boost was TD Cowen's Joshua Buchalter, who on Wednesday upped his fair value assessment on Credo stock to $95 per share; previously he had tagged it as potentially being worth $85. In making the change he left his buy rating intact. Not only that; according to reports, Buchalter and TD Cowen now consider Credo his company's best small- or mid-cap idea for 2025. That's meaningful, given the many stocks in those two categories. In his Credo update, the analyst was particularly enthusiastic about the effect of artificial intelligence (AI) demand on Credo's business. Many companies are racing to enhance their products and services with AI functionalities, and data centers must upgrade to handle the huge resource needs of the technology. It hasn't escaped Buchalter's notice that Credo is also a high-growth and high-margin company, and it's entirely possible that management will be able to maintain (or even exceed) the torrid growth it has shown of late. This company's stock is a fine buy on the continued rise of AI, and the prognosticator's optimism is justified. 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 $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — 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 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Credo Technology Stock Was Marching Higher This Week was originally published by The Motley Fool
Globe and Mail
3 days ago
- Business
- Globe and Mail
Bull of the Day: Credo Technology Group (CRDO)
Credo Technology Group Company Overview Zacks Rank #1 (Strong Buy) stock Credo Technology Group ( CRDO ) focuses on building high-speed connections for the internet's 'backbone,' specifically specializing in data centers, AI systems, and cloud computing. In today's high-tech digital world, high-speed connections are paramount. Whether someone is conducting a query through a large language model (LLM) like Alphabet's ( GOOGL ) Gemini or Microsoft ( MSFT ) and Open AI's ChatGpt, streaming a video, or using a cloud service like Apple's ( AAPL ) iCloud, that data must travel efficiently and at lightning speed between different pieces of hardware. Credo's niche is in delivering the specialized components that enable this super-fast, reliable, and energy-efficient data transfer. Credo Has Cash-Rich Clients Credo's products, specifically their Active Electrical Cables (AECs) and Digital Signal Processors (DSPs) are integral for enabling power-hungry AI data centers operated by their clients. CRDO clients include cash-rich big tech companies like Amazon ( AMZN ), Nvidia ( NVDA ), Advanced Micro Devices ( AMD ), and Tesla ( TSLA ). Data Center Buildout Drives Credo's Revenue Data centers are at the heart of Wall Street's fastest-growing industries, including cloud computing, AI, and Bitcoin mining. As big tech companies race for AI supremacy, they spend hundreds of billions of dollars in CAPEX on data centers. Wall Street analysts expect the data center market to more than double over the next five years. CRDO sells the 'picks and shovels' to the AI gold rush, and as a result, Wall Street analysts expect robust triple-digit earnings growth. Image Source: Zacks Investment Research Meanwhile, CRDO has shown a tendency to beat Zacks Consensus Estimates. Over the past four quarters, the company has delivered positive results that were 27% above expectations on average. CRDO Exhibits Relative Strength CRDO's price action matches its fundamental strength and is accelerating. Over the past year, shares have shown relative strength and gained a robust 171%, far outpacing the S&P 500's 9% gains over the same period. Image Source: Zacks Investment Research CRDO shares are currently carving out a picture-perfect cup-with-handle pattern, which will trigger above $81. Bottom Line Credo Technology Group is strategically positioned to capitalize on the explosive growth in data centers, AI, and cloud computing. With its crucial high-speed connectivity solutions, cash-rich clients, and tendency to beat earnings expectations, CRDO presents a compelling investment opportunity. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO): Free Stock Analysis Report
CNBC
4 days ago
- Business
- CNBC
This AI infrastructure leader is setting up for a move to all-time highs, according to the charts
Credo Technology is a relatively new company that came public in 2022 at an approximate $1.5 billion valuation. Amidst the AI boom in the past three years, this company has grown quickly to a $13 billion market cap company. From the looks of things, the stock is going higher. We added the name to our Active Opps portfolio based on technical and fundamental reasons I'll outline below. Fundamentals first: This company is a leader in several areas of the AI infrastructure buildout, particularly high-speed connectivity solutions. A data center is only as helpful as the individual processors and chips can quickly communicate with each other. The company builds both hardware and software stacks that increases the speed, reliability, and security of data via energy efficiencies and protocols to back up their systems. On conference calls, the company is guarded about who exactly the customers are, but large data center hyperscalers include Amazon and Microsoft. The bad news is they have relatively few clients, but the good news is these massive data center buildouts are probably going to continue the buildout for quarters to come. The growth of CRDO indicates that their customer roster may be expanding. Revenue growth (shown below the weekly chart below) in the past four years has been 81.4%, +72.99%, +4.76% and 126.34%; it's expected to grow another 85.37% to $809 million in 2026. The company is also maintaining 62%-65% gross margins, the highest among their competitors. Turning to the technicals, the weekly chart shows a pending breakout above all-time highs at $86.49 that should set up a possible test of the first Fibonacci extension (compared to the 2025 decline) at $116.35. With 89 cents earnings per share (non-GAAP) expected in 2026 for a crazy rich forward valuation of 130 times, this company can't afford any stumbles. But the volume in the past three weeks indicates institutions are accumulating and creating support above the $60 area. Moving to the daily chart, there is a near-term breakout at around $83 that sets up a test of those all-time highs around $86.70. Using some of the advanced technical modeling we do, the immediate upside target is $101.61 to book some profits. But I do want to keep a chunk for the move up to that weekly $116.35 target. Near-term risk/stop loss for us will be a move back below $70.00 where I will start to reduce position sizing and manage risk . In our Active Opps portfolio, we hold a 5% allocation in CRDO. -Todd Gordon, founder of Inside Edge Capital, LLC We offer active portfolio management and regular subscriber updates like the idea presented above. DISCLOSURES: Gordon owns CRDO personally and in his wealth management company Inside Edge Capital All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
4 days ago
- Business
- Yahoo
Intel CEO Lip-Bu?Tan Cashes Out Millions in Credo Shares
June 17 Intel (NASDAQ:INTC) CEO Lip-Bu Tan recently sold a sizable stake in Credo Technology Group (NASDAQ:CRDO), where he serves as a board director, according to a regulatory filing. Tan offloaded 75,000 shares of Credo on June 6 through an investment entity for proceeds of about $5.6 million. The average price per share was roughly $75.20, based on a filing with the U.S. Securities and Exchange Commission. Warning! GuruFocus has detected 7 Warning Signs with INTC. Following the transaction, the investment vehicle still holds 888,725 shares in Credo. Tan also maintains personal exposure to the stock, including 133,583 shares through a trust, 53,574 in a personal account, and 39,736 via a limited liability company. Credo, a provider of high-speed connectivity solutions, has climbed more than 9% year to date. By contrast, Intel shares have traded flat in the same period. Intel stock is down around 22% since Tan took over as CEO on March 18. The company cut jobs and issued weak forecasts in April, citing ongoing challenges. This article first appeared on GuruFocus.
Globe and Mail
13-06-2025
- Business
- Globe and Mail
Credo Expects Revenues to Top $800M in FY26: Is the Growth Sustainable?
Credo Technology Group Holding Ltd CRDO has set an ambitious tone for fiscal 2026, guiding revenues of more than $800 million compared with $437 million reported in fiscal 2025. Fiscal 2025 revenues rose 126% year over year amid exponential data growth and rapid AI proliferation, which is driving demand for faster and energy-efficient connectivity solutions. This bodes well for Credo. One of Credo's key strengths lies in its Active Electrical Cables ('AEC') product line, which posted double-digit sequential growth in the fiscal fourth quarter. The growth is driven by its increasing adoption in the data center market. The demand for AECs is increasing as ZeroFlap AECs offer more than 100 times improved reliability than laser-based optical solutions. Moreover, Credo's system-level approach is giving it a competitive edge. It owns the entire stack of SerDes IP, Retimer ICs, system-level design, qualification and production. This integrated approach allows faster innovation cycles and strong cost efficiency. With demonstration of PCIe Gen6 AECs and increasing hyperscaler interest, this product line is expected to remain a growth engine going ahead. Momentum in the optical business bodes well. CRDO achieved revenue targets for this business in fiscal 2025 and expects expansion of customer diversity across lane rates, port speeds and applications to accelerate revenue growth going ahead. CRDO's PCIe retimers and Ethernet retimers continue to witness customer interest, especially for scale-out networks in AI servers. Credo highlighted that the retimer business delivered 'robust' performance in both the fiscal fourth quarter and fiscal 2025, driven by 50 gig and 100 gig per lane Ethernet solutions. This growing demand underscores the increasing importance of high-performance solutions in the rapidly expanding AI-server market. Shift to 100 gig per lane solutions and higher demand for system-level expertise and software capabilities for dealing with AI-optimized architectures bode well for CRDO's retimer business. That said, increasing market competition and macroeconomic uncertainties may impact CRDO's growth trajectory. Credo competes with semiconductor giants like Broadcom Inc. AVGO and Marvell Technology, Inc. MRVL. Taking a Look at AVGO & MRVL Revenue Guidance Broadcom does not provide guidance for the full year but has provided third-quarter fiscal 2025 view. For third-quarter fiscal 2025, Broadcom expects revenues of $15.8 billion, up 21% year over year. Semiconductor revenues are anticipated to grow 25% year over year to $9.1 billion. AI semiconductor revenues are projected to grow 60% year over year to $5.1 billion, whereas non-AI semiconductor revenues are expected to reach $4 billion. AI revenues are benefiting from investments from hyperscale partners in AI XPUs and connectivity solutions for AI data centers. Infrastructure Software revenues are expected to grow 16% year over year to $6.7 billion. Marvell Technology expects revenues to be $2 billion (+/- 5%) for the second quarter of fiscal 2026, indicating growth of 57% year over year. The growth is likely to be driven by demand for AI-driven custom silicon, which has become the biggest component of Marvell Technology's data-center revenues. It expects data-center revenues to increase in the mid-single-digit range sequentially and maintain strong year-over-year growth. MRVL delivered approximately $1.9 billion in revenues for the first quarter of fiscal 2026, up 63% year over year, while data center end-market revenues of $1.44 billion rose 76% year over year. CRDO Price Performance, Valuation and Estimates Shares of CRDO gained 6.5% year to date compared with the Electronics-Semiconductors industry's growth of 6.8%. Image Source: Zacks Investment Research In terms of the forward 12-month price/sales ratio, CRDO is trading at 15.16, higher than the Electronic-Semiconductors sector's multiple of 8.21. Image Source: Zacks Investment Research The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has seen a significant upward revision over the past 60 days. CRDO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO): Free Stock Analysis Report This article originally published on Zacks Investment Research (
