Does Credo Technology Group Holding Ltd. (CRDO) have what it takes to be a top stock pick for momentum investors?
My bullish CRDO thesis, initiated Jan 2025, proved prescient as the stock surged post-Q4 FY25, validating calls to buy during its dip and highlighting its massive TAM opportunity. Credo's Q4 FY25 smashed estimates with$170M revenue (+180% YoY) and$0.35 EPS (+27% beat), fueling significant upward revisions for FY26-27 earnings and showcasing strong execution. Impressive Q4 profitability saw gross margins hit 67.4%; FY26 guidance targets $800M sales with net margins approaching 40%, suggesting substantial EPS upside beyond current consensus.
Credo Technology Group (CRDO) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Credo crushed Q4 with standout revenue growth and 67% gross margins—proof that its pricing power and execution are world-class in the evolving AI datacenter ecosystem. Customer concentration risk is easing, with strategic diversification unlocking deeper partnerships across hyperscalers and expanding its competitive moat. With nimble scaling, resilient margins, and next-gen tech on deck, Credo's becoming a definitive name in AI connectivity—volatility aside, the upside is real.
CRDO stock soars 50% in a month on AI-driven growth and upbeat guidance, yet still trades 16% below its 52-week high.
CRDO and FERG made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on June 6, 2025.
Credo's Q4 2025 revenue grew by 179.7% year-over-year and 25.9% quarter-over-quarter. Full-year revenue rose 126% to $436.8 million, highlighting rapid momentum. With cutting-edge products like the new Lark DSP and the new PILOT diagnostics platform, Credo is well-positioned to meet the rising demands of AI data centers and hyperscalers. Customer concentration risk is decreasing, with Amazon's share of revenue dropping from 86% to 61%, indicating broader market adoption.
Credo Technology Group's NASDAQ: CRDO stock price surged 25% following its FQ4 earnings release and guidance update, and it will likely set a new all-time high soon. The results were strong and affirmed the company's growing importance in the data center, high-performance computing, and AI industries.
Credo Technology Group Holding Ltd's growth runway just got cleared for takeoff, as management eyes two additional hyperscalers in the second half of FY26. Customer concentration risk with Amazon is now offset, as management's diversification strategy pushes sequential revenue growth in Q4 and supports guide for 1QFY26. Credo is now guiding for Q1 2026 revenue to hit $185.00M-$195.00M versus consensus of $162.00M.
Credo Technology is becoming a key standard in AI interconnect following its Q4 FY 2025 impressive results. Management expects 85% revenue growth in FY 2026 with the addition of 2 more hyperscalers before the end of FY 2026. I reiterate my Strong Buy based on the deep undervaluation based on FWD PEG ratio.
CRDO posts solid Q4 and FY25 earnings, fueled by surging AI demand. It records a 179.7% quarterly revenue jump on booming product sales.
Credo Technology Group Holding Ltd (NASDAQ:CRDO ) Q4 2025 Earnings Conference Call June 2, 2025 5:00 PM ET Company Participants Dan O'Neil - VP, Corporate Development & IR Bill Brennan - CEO Dan Fleming - CFO Conference Call Participants Vivek Arya - Bank of America Securities Tore Svanberg - Stifel Quinn Bolton - Needham & Company Tom O'Malley - Barclays Vijay Rakesh - Mizuho Karl Ackerman - BNP Paribas Suji Desilva - ROTH Capital Christopher Rolland - Susquehanna Joshua Buchalter - TD Cowen Richard Shannon - Craig-Hallum Operator Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only mode.