Credo's AECs, optical DSPs, and line cards are gaining traction, with its 800G ZeroFlap AECs offering lower power use, cost savings, and improved reliability over laser-based optics. The first reason for my bullishness is CRDO's margins - they're likely to expand in the next few years (the ones below gross margins) and drive massive EPS growth. The second reason for my bullishness is the end market's prospects and the massive TAM (about $1 trillion by 2031) that Credo might gain from.
Shares of Credo Technology (CRDO 0.51%), which makes high-speed connectivity solutions for the data infrastructure market, skyrocketed 245% in 2024, according to data from S&P Global Market Intelligence. (In 2025, Credo stock is down 3.2% through Tuesday, Jan. 14.
Shares of Credo Technology Group (CRDO -1.77%) rallied 37.3% in December, according to data from S&P Global Market Intelligence.
MoneyShow presents top investment ideas for 2025 from their contributors. This year's edition presents a broad mix of theme-based stock picks, momentum-driven high-flyers and beaten-up stocks with turnaround potential, along with some speculative plays and ETFs. Part 1 of this series includes Domino's Pizza, Hercules Capital, Credo Technology, Clearway Energy, Verizon, Duke Energy and Essential Utilities, among others.
CRDO's strong portfolio of Active Electrical Cables and Digital Signal Processor solutions make it a long-term pick.
Stifel analyst Tore Svanberg raised the firm's price target on Credo Technology to $80 from $75 and keeps a Buy rating on the shares. In the Analog, Connectivity, and Processors sector, the firm lists Credo as one of the most attractive stocks in its coverage due to being a key AI infrastructure beneficiary, the analyst tells investors.
Credo Technology Group is well-positioned to benefit from AI and data center growth. The company reported very strong quarterly results and provided revenue guidance that significantly exceeded expectations. Despite a premium valuation, Credo's strong revenue growth, improving margins, and multi-year AI tailwinds make it a compelling investment, especially on pullbacks.
From a closing share price just over $40 on November 11, to Friday's close just a nickel short of $76, Credo Technology (Nasdaq: CRDO) stock has been on an absolute tear this past month, gaining roughly 90% in just over 30 days.
Credo Tech is poised to benefit from a multi-year scale-out in custom data center infrastructure markets, driven by AI workloads and hyperscaler demand for efficiency. Broadcom's strong AI revenue growth and industry insights highlight a significant CAGR for custom networking solutions, benefiting companies like Credo. Credo's revenue and gross margins are accelerating, with management optimistic about future growth driven by AEC product adoption and market expansion.
Does Credo Technology Group Holding Ltd. (CRDO) have what it takes to be a top stock pick for momentum investors?
Credo Technology Group (CRDO) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Credo Technology Group (CRDO) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.