Core Insights - Credo Technology Group Holding Ltd (CRDO) has experienced significant revenue growth, driven by strong demand for high-speed connectivity solutions despite facing tariff challenges and macroeconomic uncertainties [1][3][10] - The company's operating margin expanded by 2,500 basis points in fiscal 2025, indicating effective operational discipline and profitability improvements [2][10] - CRDO anticipates revenues exceeding $800 million in fiscal 2026, representing over 85% year-over-year growth, with a projected non-GAAP net margin approaching 40% [4][10] Revenue Growth - CRDO's revenues nearly tripled from the first to the fourth quarter of fiscal 2025, showcasing its ability to adapt to market shifts [3][10] - The company has seen strong growth in its HiWire Active Electrical Cables (AECs), optical products, and retimer products, with a robust pipeline for future offerings [3][4] Operational Efficiency - Operating expenses for CRDO grew at a significantly slower rate than revenues, contributing to a substantial increase in profitability [2][10] - The company is strategically aligned with AI and data center trends, enhancing its operational excellence [4] Market Position and Competitors - CRDO's share price increased by 41.4% year-to-date, outperforming the Electronics-Semiconductors industry, which grew by 13.1% [11] - The forward 12-month price/sales ratio for CRDO is 19.63, significantly higher than the sector's average of 8.67, indicating strong market positioning [12] Earnings Estimates - The Zacks Consensus Estimate for CRDO's earnings for fiscal 2026 has seen significant upward revisions over the past 60 days, reflecting positive market sentiment [13][14]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Credo Technology Group Holding Ltd. (CRDO) currently holding a Momentum Style Score of B [2] Group 2: Zacks Rank and Performance - CRDO has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3] - Stocks rated Zacks Rank 1 and 2 with Style Scores of A or B have historically outperformed the market over the following month [3] Group 3: Price Performance - CRDO shares have increased by 16.36% over the past week, significantly outperforming the Zacks Electronics - Semiconductors industry, which rose by 1.65% [5] - Over the past month, CRDO's price change is 47.03%, compared to the industry's 11.19% [5] - In the last quarter, CRDO shares increased by 114.22%, and over the past year, they gained 210.33%, while the S&P 500 only moved 5.86% and 12.83%, respectively [6] Group 4: Trading Volume - CRDO's average 20-day trading volume is 6,990,481 shares, which serves as a bullish indicator when combined with rising stock prices [7] Group 5: Earnings Outlook - Over the past two months, four earnings estimates for CRDO have been revised upwards, increasing the consensus estimate from $1.08 to $1.48 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [9] Group 6: Conclusion - Considering all factors, CRDO is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a promising near-term investment option [11]

Group 1: Nvidia and Market Trends - Nvidia stock reached all-time highs, contributing to the Nasdaq-100-tracking QQQ ETF achieving new records [1] - Wall Street's optimism is driven by cooling Middle East tensions and expectations of a cease-fire agreement between Israel and Iran [1][2] - The technology sector is experiencing a rally, with investors encouraged to buy strong technology stocks benefiting from the artificial intelligence boom [2] Group 2: Rockwell Automation (ROK) - Rockwell Automation is focused on industrial automation and digital transformation, providing solutions across Intelligent Devices, Software & Control, and Lifecycle Services [4] - ROK is integrating advanced AI and robotics technologies into its automation solutions, enhancing manufacturing efficiency [6] - The company exceeded Q2 FY25 earnings estimates and provided positive guidance, projecting a 16% increase in adjusted earnings for FY26 [7][8] Group 3: Credo Technology Group (CRDO) - Credo Technology designs high-speed connectivity solutions that are in high demand due to investments in artificial intelligence [14] - The company reported a 126% revenue growth for fiscal 2025, with adjusted earnings rising from $0.09 to $0.70 [16] - CRDO is projected to grow adjusted earnings by 111% in fiscal 2026, with revenue expected to increase from around $200 million in FY24 to nearly $1 billion in FY27 [18]

Core Insights - Credo Technology Group Holding Ltd (CRDO) is experiencing significant growth, with fiscal 2025 revenues reaching $436.8 million, a 126% year-over-year increase, driven by high demand for energy-efficient connectivity solutions in AI data centers [1][8] - The company anticipates revenues for fiscal 2026 to exceed $800 million, indicating more than 85% year-over-year growth, supported by the transition to 100 gig per lane solutions and increased adoption of Optical DSPs [5][8] Company Performance - In the fourth quarter of fiscal 2025, CRDO's revenues surged 179.7% year-over-year to $170 million, primarily due to strong performance in HiWire Active Electrical Cables and customer momentum in PCIe and Ethernet retimers [1][8] - For the first quarter of fiscal 2026, CRDO projects revenues between $185 million and $195 million, suggesting a 12% increase at the midpoint [5] Product Portfolio - CRDO's focus on low-power, high-bandwidth interconnects, including HiWire AECs, Optical DSPs, and SerDes solutions, positions it well within the AI infrastructure market [2][3] - The company is witnessing growing interest in its PCIe retimers and Ethernet retimers, which are crucial for scale-out networks in AI servers [3] Market Dynamics - The demand for AI infrastructure is driving CRDO's growth, with hyperscaler customers increasingly seeking advanced connectivity solutions [1][5] - Competitors like Marvell Technology and Broadcom are also capitalizing on the AI data center trend, with Marvell's data center revenues increasing by 76% year-over-year and Broadcom projecting a 21% year-over-year revenue increase for the third quarter of fiscal 2025 [6][7] Valuation Metrics - CRDO's shares have surged 209.4% over the past year, significantly outperforming the Electronics-Semiconductors industry's growth of 20.8% [9] - The company is currently trading at a price/book ratio of 25.25, which is higher than the sector's average of 9.62 [10]

Core Viewpoint - The article discusses the volatile market conditions in 2025, highlighting the performance of top stock picks and the impact of tariffs and geopolitical events on market dynamics [7][9][19]. Market Overview - The US equity market experienced significant fluctuations due to tariff announcements, leading to a major correction in April 2025, with the S&P 500 dropping approximately 15% from its 52-week high [9][10]. - A barbell investment approach was recommended to diversify portfolios during market corrections, focusing on stocks with strong fundamentals and good dividend yields [10][13]. Stock Performance - The top 10 stocks recommended at the beginning of 2025 saw a performance swing from over 20% gains to below 20%, reflecting a nearly 40% change during the volatile period [15][16]. - By mid-2025, many of these stocks rebounded as fear subsided and investors returned to fundamentals [16]. Economic Indicators - Inflation rates showed a surprising decrease, with core CPI at 0.1% for May, and there is speculation about potential interest rate cuts by the Federal Reserve in September [22][23]. - The recession risk appears less severe than previously anticipated, with GDP growth projected to exceed 2% annualized after a decline in Q1 [23][31]. Top Stock Picks - **Barclays (NYSE: BCS)**: A diversified bank with a market cap of $62 billion, ranked 12 out of 691 in financial institutions, offering a dividend yield of 2.47% and a forward EPS growth rate of 28% [80][81]. - **Prudential (NYSE: PUK)**: Based in Hong Kong, this insurance company ranks 1 out of 19 in its industry, with a forward dividend yield of 1.89% and a long-term EPS growth rate of 17% [86][89]. - **FinVolution (NYSE: FINV)**: A fintech company with a market cap of $2.2 billion, ranking 7 out of 691 in financials, showing a 255% operating cash flow growth rate [93][94]. - **Power Solutions International (NASDAQ: PSIX)**: A small-cap company with a market cap of $1.23 billion, ranked number one in the industrials sector, with a one-year return of 835% [97][99]. - **New Gold (NYSE: NGD)**: Focused on gold, silver, and copper exploration, with an operating cash flow growth rate of 56% [107][110]. - **Gold Fields Limited (NYSE: GFI)**: A diversified mining company with a 37% EPS forward long-term growth rate, ranking 5 in the materials sector [111][113]. Investment Strategies - The article emphasizes a data-driven approach to stock selection, utilizing a GARP (Growth at a Reasonable Price) strategy that combines growth, value, profitability, and momentum metrics [40][42]. - The new PRO Quant Portfolio offers a higher frequency of stock ideas, designed for active investors, with a focus on global stocks across various market caps [59][64].

Core Insights - The article compares two semiconductor companies, Credo Technology Group Holding Ltd. (CRDO) and Marvell Technology, Inc. (MRVL), focusing on their roles in the AI-driven data center market [2][3][21] Company Overview - CRDO specializes in high-speed connectivity solutions, particularly in Ethernet and Active Electrical Cables (AECs), which are crucial for data centers [5][10] - MRVL has a diversified product portfolio that includes custom ASICs, data center switches, and 5G chips, with a strong focus on AI infrastructure [10][11] Financial Performance - CRDO's fiscal 2025 revenues rose 126% year over year to $436.8 million, with fourth-quarter revenues surging 179.7% year over year to $170 million [5][10] - MRVL's data center revenues increased 76% year over year to $1.44 billion, driven by demand for custom AI silicon and electro-optics products [11][12] Growth Drivers - CRDO's AECs are gaining traction due to their reliability, with a product line that is expected to remain a growth engine [5][6] - MRVL's growth is supported by solid demand for its storage and networking chips, particularly from the 5G infrastructure and data center markets [10][11] Market Trends - The shift from copper to optical connectivity in AI infrastructure presents significant growth opportunities for MRVL's Co-Packaged Optics technology [13] - Both companies are positioned to benefit from the increasing reliance on high-performance solutions in the rapidly expanding AI-server market [8][12] Competitive Positioning - CRDO's integrated system-level approach provides a competitive edge, allowing for faster innovation cycles and cost efficiency [6] - MRVL's collaboration with NVIDIA to integrate NVLink Fusion into its custom silicon platform enhances its capabilities in developing next-generation AI infrastructure [12] Stock Performance and Valuation - Over the past month, CRDO and MRVL have registered gains of 38.2% and 20.2%, respectively [17] - CRDO is trading at a forward 12-month price/sales ratio of 17.40X, significantly higher than MRVL's 7.36X [18] Analyst Estimates - Analysts have revised CRDO's bottom line estimates upward significantly in the past 60 days, indicating strong growth expectations [20] - MRVL has seen marginal upward estimate revisions, reflecting steady performance [20] Investment Recommendation - CRDO currently holds a Zacks Rank 1 (Strong Buy), while MRVL has a Zacks Rank 3 (Hold), suggesting that CRDO may be a better investment pick at this time [21]

Group 1 - Ethernet is becoming the essential infrastructure for modern AI data centers, positioning Credo Technology Group Holding Ltd favorably to capitalize on this trend [1] - Credo Technology Group is a fabless designer based in San Jose, indicating a focus on design rather than manufacturing, which may enhance operational efficiency [1] Group 2 - The article highlights the increasing importance of AI tools and applications, suggesting a growing market for companies involved in AI infrastructure [1]

Group 1 - Credo Technology Group Holding Ltd. (CRDO) has reached a key level of support, with its 50-day simple moving average crossing above its 200-day simple moving average, indicating a "golden cross" [1] - A golden cross is a technical chart pattern that suggests a bullish breakout may be imminent, typically involving the 50-day and 200-day moving averages [1][2] - CRDO shares have increased by 22.2% over the past four weeks, and the company holds a 1 (Strong Buy) rating on the Zacks Rank, indicating potential for further upward movement [3] Group 2 - The earnings expectations for CRDO have improved, with four upward revisions and no downward changes in the past 60 days, leading to an increase in the Zacks Consensus Estimate [3] - Investors are encouraged to consider adding CRDO to their watchlist due to the significant technical indicator and positive earnings estimate trends [3]

Core Viewpoint - The article discusses the author's investment insights and portfolio, emphasizing a unique perspective on stock analysis and investment opportunities [1]. Group 1 - The author expresses a beneficial long position in AVGO shares, indicating confidence in the company's future performance [2]. - There is no current investment or plans to invest in CRDO, highlighting a cautious approach towards this particular stock [3]. - The analysis is intended for informational purposes, encouraging investors to conduct their own research before making investment decisions [3]. Group 2 - The article does not provide specific recommendations or advice regarding investment suitability for individual investors [4]. - It clarifies that past performance does not guarantee future results, underscoring the inherent risks in stock investments [4]. - The author’s views may not represent the broader opinions of Seeking Alpha, indicating a diversity of perspectives within the platform [4].

Core Insights - Credo Technology Group Holding Ltd (CRDO) has set a revenue guidance of over $800 million for fiscal 2026, a significant increase from $437 million in fiscal 2025, reflecting a 126% year-over-year growth driven by data growth and AI demand [1][10] Group 1: Product Performance - The Active Electrical Cables (AEC) product line has shown double-digit sequential growth in fiscal Q4, primarily due to its adoption in the data center market, with ZeroFlap AECs offering over 100 times improved reliability compared to laser-based optical solutions [2] - Credo's integrated approach, owning the entire stack of SerDes IP, Retimer ICs, and system-level design, allows for faster innovation cycles and cost efficiency, positioning AECs as a growth engine [3] - The optical business has met revenue targets for fiscal 2025, with expectations for increased customer diversity across various applications to further accelerate revenue growth [4] Group 2: Market Demand and Competition - The demand for PCIe retimers and Ethernet retimers is strong, particularly for AI server scale-out networks, with robust performance reported in fiscal Q4 and fiscal 2025, driven by 50 gig and 100 gig per lane Ethernet solutions [5] - However, increasing competition from semiconductor giants like Broadcom and Marvell Technology may pose challenges to CRDO's growth trajectory [6] Group 3: Industry Comparisons - Broadcom expects third-quarter fiscal 2025 revenues of $15.8 billion, a 21% year-over-year increase, with AI semiconductor revenues projected to grow 60% year-over-year to $5.1 billion [7] - Marvell Technology anticipates revenues of $2 billion for the second quarter of fiscal 2026, indicating a 57% year-over-year growth, driven by demand for AI-driven custom silicon [8] Group 4: Financial Metrics - CRDO shares have gained 6.5% year-to-date, slightly underperforming the Electronics-Semiconductors industry's growth of 6.8% [11] - The forward 12-month price/sales ratio for CRDO is 15.16, significantly higher than the sector's multiple of 8.21 [13] - The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has seen a notable upward revision over the past 60 days [14]