Credo Technology Group

CRDO

Market cap $32.6B

Hyperscalers are turning to Credo for their networking needs. The AI beneficiary's sales and profits are soaring.

Credo Technology (CRDO) hit an all-time high of $213 Tuesday before pulling back from the record. George Tsilis why some investors see Credo as a "hot" under the radar A.I.

Credo Technologies' NASDAQ: CRDO fiscal year 2026 (FY2026) Q2 results are yet another example of why the AI trade is far from over. As NVIDIA NASDAQ: NVDA and Advanced Micro Devices NASDAQ: AMD continue to dominate GPU sales for AI data centers built by Microsoft NASDAQ: MSFT, Amazon NASDAQ: AMZN, and Meta Platforms NASDAQ: META, the demand for high-speed connectivity grows in parallel.

Credo Technology Group Holding Ltd. (NASDAQ: CRDO) reported upbeat second-quarter financial results and issued strong third-quarter sales guidance on Monday.

Credo Technology (NASDAQ:CRDO) shares surged almost 15% as it reported fiscal second quarter earnings that topped Wall Street estimates, driven by rising demand for its AI-driven connectivity solutions. For the quarter ended November 1, revenue was up 20.2% year-over-year at $268 million, ahead of estimates of $234.67 million.

Shares of Credo Technology Group Holding Ltd (NASDAQ:CRDO) are surging this morning, up 22% to trade at $208.35 at last check, earlier hitting a record high of $213.80.

Credo Technology Group Holding Ltd. is a must-own AI infrastructure stock, delivering stellar Q2 results and robust forward guidance. CRDO reported 272% YOY revenue growth to $268M, with non-GAAP gross margin at 67.7% and operating margin at 46.3%. Q3 revenue guidance of $335–345M far exceeds consensus, supported by strong demand from hyperscaler customers and new product ramps.

Credo surges on record revenue growth as AI demand and new pillars like ZF optics, ALCs and OmniConnect gearboxes expand its multibillion-dollar reach.

Credo Technology Group Holding Ltd reports exceptional Q3 2026 guidance, with revenue growth projected at 159% y/y, far surpassing consensus expectations. Despite strong near-term momentum, CRDO faces significant topline deceleration in fiscal 2027, with growth likely moderating to 70–80% y/y. CRDO trades at approximately 116x forward free cash flow, but its adjusted PEG ratio of 1.5x appears attractive given current growth rates.

Credo Technology reported a stronger-than-expected second quarter, swinging to a profit as revenue more than tripled on the back of accelerating investment in artificial intelligence training and inference systems. The provider of high-speed connectivity solutions for data centers said demand for scale, density, and power efficiency in next-generation AI systems continues to rise rapidly.