Shares of data center cable company Credo Technology (CRDO 45.10%) rocketed on Tuesday, with shares up 47.3% as of 1:11 p.m. ET.The company reported earnings last night that not only beat analyst estimates but also delivered blowout guidance, suggesting Credo has emerged as a new artificial intelligence (AI) winner.An inflection point in AI interconnectCredo makes a unique cable product called an active electrical cable (AEC), which connects data center servers to networking switches. The company claims its ...

Credo Technology Group Holding Ltd CRDO reported better-than-expected second-quarter financial results and issued strong guidance on Monday.Credo Technology reported quarterly earnings of 7 cents per share which beat the analyst consensus estimate of 5 cents per share. The company reported quarterly sales of $72.000 million which beat the analyst consensus estimate of $66.789 million.Bill Brennan, Credo’s President and Chief Executive Officer, stated, “In the fiscal second quarter ended November 2, 2024 Cre ...

Credo Technology Group Holding Ltd CRDO shares jumped almost 40% in early trading on Tuesday.The visibility into the company's growth inflection in the back half of the year improved significantly, according to BofA Securities.Analyst Vivek Arya upgraded the rating for Credo Technology from Underperform to Buy while raising the price target from $27 to $80.The Credo Technology Thesis: The company delivered a "solid beat and material raise" quarter, Arya said in the upgrade note.Check out other analyst stock ...

Key TakeawaysCredo Technology Group Holding beat second-quarter profit and sales estimates as the boom in artificial intelligence boosted demand for its connectivity solutions for data centers.The company also predicted better-than-expected current-quarter revenue.Shares of Credo traded at an all-time high Tuesday. Shares of Credo Technology Group Holding (CRDO) soared 40% to an all-time high Tuesday, a day after the provider of high-speed connectivity solutions for data centers posted better-than-expected ...

More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Financial Data and Key Metrics Changes - Credo generated revenue of $72 million in Q2, representing a 21% sequential increase and a 64% year-over-year increase [8][28] - Non-GAAP gross margin for Q2 was 63.6%, showing a sequential increase of 73 basis points [32] - Non-GAAP operating income was $8.3 million in Q2, compared to $2.2 million in Q1, with a non-GAAP operating margin of 11.5% [32] - Non-GAAP net income for Q2 was $12.3 million, up from $7 million in Q1 [33] - Cash flow from operations was $10.3 million, with a decrease in cash and equivalents to $383 million [34] Business Line Data and Key Metrics Changes - The product business generated $69.1 million in revenue for Q2, up 21% sequentially and 88% year-over-year [28] - AEC product line achieved record revenue driven by strong demand from top customers [14] - Optical DSP revenues also reached record levels, fueled by 50-gig and 100-gig per lane solutions [19][20] - Line card retimer business generated record revenue driven by 400-gig and 800-gig applications [24] Market Data and Key Metrics Changes - The company anticipates continued growth in the AEC market, driven by AI deployments and increasing customer relationships [27] - The optical DSP market is expected to present significant long-term growth opportunities, particularly with the introduction of 200-gig per lane solutions [22][20] - The company expects Q3 revenue to be between $115 million and $125 million, indicating a strong market demand [35] Company Strategy and Development Direction - Credo is focused on delivering innovative Ethernet connectivity solutions and is well-positioned as a market leader in AECs [15][9] - The company aims to maintain a non-GAAP gross margin of 63% to 65% and an operating margin of 30% to 35% in the long term [31] - Credo is actively pursuing opportunities in the PCIe market, with plans to sample PCIe products to customers in calendar '25 [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the anticipated revenue inflection point in the second half of fiscal '25, with greater momentum than initially projected [27] - The company is seeing healthy design activity across several customers and expects continued growth over time [42] - Management noted that the competitive landscape for AECs remains stable, with a focus on delivering unique, differentiated products [46] Other Important Information - The company reported a significant increase in customer diversification, with seven end customers contributing more than 5% of revenue in Q2 [31] - The company is well-capitalized to continue investing in growth opportunities while maintaining a substantial cash buffer [34] Q&A Session Summary Question: What is driving the significant upside in Q3 guidance? - Management indicated that stronger project forecasts and increased visibility into customer programs contributed to the upside [41] Question: How is the competitive landscape for AECs evolving? - Management noted that while competition exists, the market is large enough to support multiple players, and Credo aims to be first in delivering unique products [46][47] Question: What are the growth drivers for fiscal '26? - Management expects AECs to be the main driver, with optical DSP and line card retimers also contributing to growth [58] Question: How does the company view inventory levels amid growth? - Management stated that there is a high consumption rate among customers, with no significant inventory build observed [80] Question: What percentage of AEC revenues is related to AI applications? - Management confirmed that the large majority of AEC shipments are based on AI applications [112] Question: How many customers are engaged in the Optical DSP side? - Management indicated that there is broader design activity at the optical module level, with increased activity from end customers for qualifications [118]

Credo Technology Group Holding Ltd. (CRDO) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 40%. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced earnings of $0.04, delivering no surprise.Over the last four quarters, the ...

Financial Performance - Revenue for the quarter increased by 15% compared to the same period last year [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8% due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered two new international markets, contributing to a 20% increase in global sales [4]. - A new distribution center was opened in Europe to support the growing demand in the region [5]. - Strategic partnerships were formed with local retailers to enhance market penetration [6]. Product Development - Launched three new products, which accounted for 25% of total sales this quarter [7]. - R&D investment increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the new product line has been overwhelmingly positive, with a 90% satisfaction rate [9]. Operational Efficiency - Implemented new supply chain management software, reducing delivery times by 15% [10]. - Energy consumption was reduced by 5% through the adoption of sustainable practices [11]. - Employee productivity improved by 12% following the introduction of a new training program [12]. Risk Management - Identified potential supply chain disruptions and developed contingency plans to mitigate risks [13]. - Increased cybersecurity measures to protect sensitive customer data [14]. - Conducted regular financial audits to ensure compliance with regulatory standards [15]. Customer Engagement - Launched a new loyalty program, resulting in a 30% increase in repeat customers [16]. - Enhanced customer service by expanding the support team and implementing a 24/7 helpline [17]. - Social media engagement grew by 40%, driven by targeted marketing campaigns [18].

SAN JOSE, Calif., Dec. 02, 2024 (GLOBE NEWSWIRE) -- Credo Technology Group Holding Ltd (Nasdaq: CRDO), an innovator in providing secure, high-speed connectivity solutions that deliver improved energy efficiency as data rates and corresponding bandwidth requirements increase through the data infrastructure market, today reported financial results for the second quarter of fiscal year 2025, ended November 2, 2024. Second Quarter of Fiscal Year 2025 Financial Highlights Revenue of $72.0 million, grew by 20.6% ...

I gave Credo Technology Group (NASDAQ: CRDO ) a buy rating on the 24th of June this year. My key thesis was that CRDO is well positioned to benefit from growing needs for faster data transmission, given its I'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a disc ...