SAN JOSE, Calif.--(BUSINESS WIRE)--Credo to Acquire Hyperlume, Inc.; Addition of MicroLED Technology Capabilities Accelerates Credo Leadership in High-Speed Connectivity. ...

Group 1: Company Overview - Credo Technology Group Holding Ltd. (CRDO) currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical outperformance in the market [4] Group 2: Price Performance - CRDO shares have increased by 4.67% over the past week, while the Zacks Electronics - Semiconductors industry has risen by 4.89% during the same period [6] - Over the past month, CRDO's price change is 9.95%, outperforming the industry's 6.36% [6] - In the last quarter, CRDO shares have surged by 54.83%, and over the past year, they have gained an impressive 364.11% [7] - In comparison, the S&P 500 has only moved 8.73% and 17.21% over the same respective periods [7] Group 3: Trading Volume - The average 20-day trading volume for CRDO is 6,290,745 shares, which serves as a bullish indicator when combined with rising stock prices [8] Group 4: Earnings Outlook - Over the past two months, four earnings estimates for CRDO have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $1.48 to $2.03 [10] - For the next fiscal year, three estimates have also moved upwards with no downward revisions [10] Group 5: Conclusion - Given the strong momentum indicators and positive earnings outlook, CRDO is positioned as a promising investment opportunity [12]

Core Insights - Credo Technology Group Holding Ltd has launched its 224G PAM4 SerDes Intellectual Property (IP) using TSMC's N3 technology, marking a significant advancement in data transmission capabilities [1][9] - The transition to 224G PAM4 per lane doubles data rates compared to the previous 112G PAM4, facilitating the development of 1.6Tbps connectivity solutions that reduce complexity, cost, and power consumption [2][9] - The 1.6T networking market is projected to reach $13 billion by 2028, with adoption expected to ramp up by the end of this year, indicating strong market potential for Credo's offerings [3] Product Offerings - Credo's diverse portfolio includes SerDes IP ranging from 28G to 224G, with various reach options such as long reach plus (LR+), long reach (LR), medium reach (MR), and very short reach plus (VSR) [4] - The introduction of the Bluebird DSP, a low-power solution for 1.6Tbps optical transceivers, supports 224Gbps per lane PAM4 data transmission while operating under 20 watts, making it suitable for AI and hyperscale data centers [6] Financial Projections - For fiscal 2026, Credo anticipates mid-single-digit sequential revenue growth, leading to an estimated 120% year-over-year increase, with revenues expected to exceed $800 million [7] - The company projects a non-GAAP net margin of around 40% for the upcoming quarters and fiscal 2026, indicating strong profitability potential [7] Market Performance - Credo currently holds a Zacks Rank 1 (Strong Buy), with its shares having surged 232.3% over the past six months, significantly outperforming the Zacks Electronics-Semiconductors industry's growth of 61.1% [8]

Core Insights - The article compares two semiconductor companies, Credo Technology Group Holding Ltd. (CRDO) and Marvell Technology, Inc. (MRVL), both of which are integral to the infrastructure supporting AI-driven data centers [1][2]. Group 1: Company Overview - CRDO specializes in high-speed connectivity solutions, particularly in its AEC product line, which has seen significant growth due to its reliability and lower power consumption compared to optical solutions [4][5]. - Marvell has a diversified product portfolio, focusing on custom ASICs, data center switches, and 5G chips, with a strategic pivot towards the data center market [9][10]. Group 2: Financial Performance - CRDO reported a strong fiscal first quarter, with three hyperscalers contributing over 10% of revenues, and anticipates continued revenue growth from these clients [5][8]. - MRVL's data center revenues surged 69% year over year, with a significant contribution from custom silicon and electro-optics, making data center the largest segment for the company [9][11]. Group 3: Growth Drivers - CRDO's growth is driven by its AEC business, optical solutions, and PCIe retimer products, with expectations of substantial revenue growth in fiscal 2026 [6][7][8]. - MRVL's growth is supported by its custom XPU products and a robust design pipeline, with management targeting a significant increase in market share in the data center space [11][12]. Group 4: Market Position and Valuation - CRDO's stock has increased by 76% over the past three months, while MRVL's stock has declined by 1.7% during the same period [9][16]. - In terms of valuation, CRDO has a forward price/sales ratio of 26.94X, which is higher than MRVL's 7.17X, indicating differing market perceptions [18]. Group 5: Analyst Estimates - Analysts have significantly revised earnings estimates for CRDO upwards, while MRVL has seen only minor revisions [20][21]. - CRDO holds a Zacks Rank of 1 (Strong Buy), while MRVL has a Zacks Rank of 3 (Hold), suggesting a more favorable outlook for CRDO at this time [23].

Group 1 - The analyst reiterated a buy rating on Credo Technology Group Holding Ltd (NASDAQ: CRDO) in early July, which has resulted in a 72% stock price increase since the recommendation [1] - The analyst has a strong focus on the tech sector and holds a Bachelor of Commerce Degree with Distinction, majoring in Finance [1] - The core values emphasized by the analyst include Excellence, Integrity, Transparency, and Respect, which are believed to be essential for long-term success [1] Group 2 - The article invites readers to provide constructive criticism and feedback to enhance the quality of the analyst's work [1]

Core Insights - Volvo is expanding its production operations in the United States, particularly focusing on the XC60 model, which is currently imported from Sweden [3][10] - The company acknowledges a need to adapt to a changing trade environment, emphasizing regional production over globalization [3][4] - There is a recognition that electrification has not progressed as quickly as anticipated, leading to underutilization of production capacity [5][6] Group 1: Production Expansion - Volvo plans to start building the XC60 in the U.S. by late 2024 or 2025, with another model expected by 2030 [4][10] - The company aims to be a serious domestic player in the American market, necessitating a stronger industrial presence [4][10] Group 2: Market Dynamics - The automotive industry is experiencing a shift with new Chinese players entering the market, which may lead to consolidation among existing brands [7][8] - It is projected that within five years, a third of the automotive industry could be Chinese, indicating significant market changes [8] Group 3: Challenges and Opportunities - Volvo sees electrification as an opportunity but acknowledges the need for pragmatic solutions for customers who cannot charge their vehicles [5][6] - The company believes that as charging infrastructure improves and electric vehicle prices decrease, the adoption of electric vehicles will increase [6]

Core Viewpoint - Renaissance Investment Management's Q2 2025 investor letter highlights the volatility in the stock market due to unexpected tariff announcements, but also notes a recovery driven by strong corporate earnings and economic data, with the Russell 2000 Growth Index performing well [1] Group 1: Market Performance - The stock market experienced a 7% drop from April 2 to April 7 due to tariff announcements, followed by a recovery as the Trump Administration moderated its tariff proposals [1] - The Russell 2000 Growth Index rallied in Q2 2025, and the Small Cap Growth Strategy outperformed this index [1] Group 2: Company Focus - Credo Technology Group Holding Ltd - Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported a one-month return of 46.92% and a 52-week gain of 469.18%, closing at $169.56 per share with a market capitalization of $29.333 billion on September 19, 2025 [2] - The company is a key contributor to the Small Cap Growth Strategy's performance, with revenue growth of nearly 180% in the most recent quarter and expectations for over 200% growth in the current quarter, driven by demand from major customers like Amazon and Microsoft [3] - Credo Technology Group Holding Ltd reported revenue of $223 million in fiscal Q1 2026, reflecting a 31% sequential increase and a 274% year-over-year increase [4] Group 3: Investment Sentiment - At the end of Q2 2025, 48 hedge fund portfolios held shares of Credo Technology Group Holding Ltd, an increase from 41 in the previous quarter [4] - While the company shows strong potential, there are suggestions that other AI stocks may offer greater upside with less downside risk [4]

Market Overview - US stocks are experiencing a positive reaction following the Federal Reserve's first interest rate cut of the year, with major indexes reaching all-time highs. The S&P 500 is up 0.72%, the Dow is up 0.67%, and the Nasdaq has increased by 1.49% this week [1][2]. Federal Reserve Actions - The Federal Reserve's recent 25-basis point cut was the first since December of the previous year, with only one dissenting vote for a larger cut. Fed Chair Jerome Powell described this as a "risk management cut" in response to labor market softness, indicating potential for two more cuts this year [2][3]. Historical Context - Historically, the S&P 500 tends to rally after rate cuts following a long pause, with an average gain of about 15% over 12 months based on data since 1976. The current easing cycle began after the last rate hike in July 2023 [4]. Small-Cap Performance - Small-cap stocks are showing strong performance, with the Russell 2000 index recently hitting a new all-time high after a period of stagnation since November 2021. The forward P/E ratio of small-caps is at its lowest relative to large-caps since 1999, indicating potential for further growth [5][6]. Stocks to Watch - Credo Technology Group (CRDO) has seen a significant increase in its stock price, surging over 150% in 2025, and recently reported fiscal first-quarter earnings of 52 cents per share, exceeding estimates by 48.6% [8][9]. - IonQ (IONQ), a quantum computing company, has also experienced stock growth after acquiring Oxford Ionics, with expected revenue growth of 115% to $92.7 million this year, despite operating at a net loss [12][13]. Market Sentiment - The current market trend remains strong, with bullish sentiment not yet reaching cautionary levels, suggesting potential for further upside. Many individual stocks are outperforming, indicating a healthy market environment [15].

Core Insights - Credo Technology Group Holding Ltd (CRDO) is experiencing rapid growth in its optical business, with management projecting a doubling of revenues in fiscal 2026 [1][10] - The company’s optical digital signal processor (DSP) portfolio is tailored to meet the increasing connectivity demands of data centers and hyperscale networks driven by AI infrastructure [1] Group 1: Optical Business Performance - Credo's optical DSP portfolio includes full DSP and linear receive optical (LRO) solutions, supporting port speeds up to 1.6 terabits per second, which are gaining traction among optical module makers and hyperscale customers [2] - The company introduced the Bluebird DSP, a high-performance, low-power solution for 1.6Tbps optical transceivers, which operates under 20 watts, making it suitable for dense AI and hyperscale data centers [3] - In fiscal 2026, Credo anticipates mid-single-digit sequential revenue growth, leading to approximately 120% year-over-year growth, with non-GAAP net margin projected around 40% [5][10] Group 2: Competitive Landscape - Credo faces competition from semiconductor giants like Marvell Technology and Broadcom, which are also advancing their optical DSP strategies [6] - Marvell is enhancing its leadership in AI interconnect and optical technologies, with expectations of double-digit sequential growth in its electro-optics portfolio [7][8] - Broadcom maintains a dominant position in the optical DSP market, leveraging its extensive portfolio and customer relationships to support AI infrastructure [9] Group 3: Market Performance and Valuation - CRDO shares have increased by 156.3% year-to-date, outperforming the Electronics-Semiconductors industry's growth of 34.2% [12] - The forward 12-month price/sales ratio for CRDO is 28.68, significantly higher than the sector's multiple of 9.35 [13] - The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has been revised upward over the past 60 days, indicating positive market sentiment [14]

Core Insights - Hyperscaler partnerships are crucial for Credo Technology Group Holding Ltd.'s rapid growth, enabling market share expansion through the adoption of active electrical cables (AEC) and optical solutions for next-gen AI data centers [1][2] - The demand for AI-driven data center infrastructure has led to a significant revenue increase for Credo, with a 274% year-over-year growth in Q1 of fiscal 2026 [2][8] - Management anticipates that all major hyperscalers will adopt AECs due to their higher reliability, lower power consumption, and reduced system costs compared to optical solutions [3][8] Company Performance - Credo's revenue growth is driven by contributions from multiple hyperscalers, with three hyperscalers each accounting for over 10% of total revenues in the recent quarter [2][8] - The company expects further diversification as additional hyperscalers ramp up their contributions in the coming quarters [2] - Credo's shares have increased by 144.6% year-to-date, outperforming the Electronics-Semiconductors industry's growth of 36.2% [10] Market Position and Competition - The electronics semiconductor market is competitive, dominated by established players like Marvell Technology and emerging companies like Astera Labs [4] - Marvell is well-positioned to capture a larger share of the market due to its strong demand environment and multigenerational custom engagements with hyperscalers [5][6] - Astera Labs is focusing on advanced AI infrastructure and sees significant growth potential in purpose-built solutions for hyperscalers [7][9] Financial Estimates - The Zacks Consensus Estimate for Credo's earnings for fiscal 2026 has been revised upward significantly over the past 60 days, indicating positive market sentiment [12] - Current earnings estimates for Q1 and Q2 of fiscal 2026 are $0.48 and $0.49 respectively, with significant upward revisions noted [13]