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]

Summary of Credo Technology Group (CRDO) Conference Call Company Overview - **Company**: Credo Technology Group (CRDO) - **Industry**: Semiconductor and Networking Technology - **Key Products**: High-performance, low-power SerDes technology, Active Electrical Cables (AECs), Linear Resistive Optics (LROs), Retimers, Gearboxes, MaxEck cables - **Growth**: Company has grown from a startup to over 500 employees and went public in January 2022 [2][3] Key Points and Arguments Revenue Growth and Market Position - **Revenue Growth**: AEC cable revenue has grown almost 10x since the IPO, surprising many in the industry [4][21] - **Competitive Moat**: Credo's competitive advantage lies in its deep and broad SerDes IP portfolio, application-specific mindset, and vertical integration from product definition to production [5][8][9] Innovation and Technology - **Three Tiers of Innovation**: Credo focuses on SerDes, integrated circuit design, and system-level solutions, which contribute to its competitive moat [6][7] - **Reliability Focus**: In AI applications, reliability has become the top priority for customers, with Credo's AECs being over 100 times more reliable than laser-based optics [12][14] Customer Engagement and Market Expansion - **Customer Diversification**: The company is expanding its footprint with leading hyperscalers, with plans to ramp up engagement with new customers [22][30] - **Market Opportunities**: There are significant opportunities in rack-to-rack connectivity and the adoption of AECs across various network applications [24][29] Future Outlook - **Scale Up vs. Scale Out**: The company sees a 10x opportunity in scale-out and another 10x in scale-up, indicating a massive potential market [33] - **Protocol Evolution**: Credo is positioned to support various protocols, including PCIe and NVLink, and is focused on delivering universal solutions [36][52] Optical DSP and Competitive Landscape - **Optical DSP Growth**: The optical DSP segment has also seen significant growth, with a focus on low-cost, low-power solutions [63] - **CPO Discussion**: Credo anticipates that CPO (Copper Passive Optical) will take off at higher-level switching, but reliability remains a core concern [68][71] Manufacturing and Capacity - **Manufacturing Flexibility**: The company has successfully ramped up production capacity for AECs and is well-positioned to meet future demand [83][84] Market Trends and Challenges - **Copper vs. Optical**: Credo believes that copper will continue to play a significant role in networking, despite the growth of optical solutions [91][92] - **Industry Growth**: The networking market is projected to grow significantly, with competitors like Broadcom reporting substantial year-on-year growth [96] Additional Important Insights - **Customer Engagement**: Credo's approach to working closely with customers to innovate and enhance product features is a key differentiator [15][17] - **Future Protocols**: The company is monitoring the evolution of protocols like NVLink Fusion and SUE, which could impact market dynamics [78][80] This summary encapsulates the key insights from the Credo Technology Group conference call, highlighting the company's growth trajectory, competitive advantages, and future opportunities in the semiconductor and networking technology industry.

Company Overview - Credo Technology Group Holding Ltd. (CRDO) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook for investors [3] Price Performance - Over the past week, CRDO shares have increased by 19.69%, outperforming the Zacks Electronics - Semiconductors industry, which rose by 4.25% [5] - In a longer time frame, CRDO's shares have risen by 28.72% over the past month, compared to the industry's 3.69% [5] - Over the last three months, CRDO shares have surged by 51.19%, and over the past year, they have increased by 148.83%, while the S&P 500 has only moved 4.46% and 13.71%, respectively [6] Trading Volume - The average 20-day trading volume for CRDO is 5,337,776 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In 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 $1.08 to $1.48 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [9] Conclusion - Given the strong price performance, positive earnings outlook, and high momentum score, CRDO is positioned as a promising investment opportunity [11]

Group 1 - The article discusses the initiation of coverage on Credo Technology Group Holding Ltd (NASDAQ: CRDO) with a bullish rating, suggesting that the stock's valuation is not as expensive as it appears despite high multiples [1] - The investment group Beyond the Wall Investing offers features such as a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas based on technical signals [1] - The analyst has a beneficial long position in CRDO shares, indicating confidence in the stock's future performance [1]

Core Viewpoint - Credo Technology Group Holding Ltd. (CRDO) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact its stock price [2]. - The consensus earnings estimate for the current quarter has increased to $0.35 per share, reflecting a remarkable change of +775% year-over-year, with a 36.75% increase over the last 30 days [5]. - For the full year, the expected earnings per share is $1.48, representing a year-over-year increase of +111.43%, with a 43.33% rise in consensus estimates over the past month [6][7]. Zacks Rank and Performance - Credo Technology Group has achieved a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on favorable estimate revisions [8]. - Stocks with a Zacks Rank 1 and 2 have historically outperformed the S&P 500, suggesting a positive outlook for Credo Technology Group [8]. Stock Performance - The shares of Credo Technology Group have increased by 43.6% over the past four weeks, indicating strong investor confidence in the company's earnings growth prospects [9].

Company Overview - Invictus Origin is a high-alpha investment management firm founded by Oliver Rodzianko in May 2025, aiming to become a globally recognized actively managed fund [1] - The firm is developing innovative portfolio strategies, particularly through its Nasdaq High-Alpha Black Swan Portfolio, designed to sustainably outperform the Nasdaq-100 [1] - The portfolio maintains approximately 20% in strategic cash reserves, providing downside protection and flexibility during market disruptions [1] Leadership and Expertise - Oliver Rodzianko has extensive experience as a macro-focused investment analyst specializing in public equities, emphasizing fundamental valuation and long-term market cycles [1] - His sector expertise includes technology, semiconductors, artificial intelligence, and energy, integrating U.S. market specialization with international market awareness [1] - Rodzianko has a strong reputation as an Investment Analyst for platforms like Seeking Alpha, TipRanks, and GuruFocus, providing actionable insights to sophisticated investors [1] Investment Strategy - The investment process at Invictus Origin focuses on capturing asymmetric upside by navigating market dislocations and intrinsic value cycles [1] - The firm is characterized by resilience, performance, and disciplined capital stewardship, supported by a complementary family office structure for lower-volatility capital preservation [1]

Investment Rating - Industry Rating: Outperform the Market (Maintained Rating) [1] Core Insights - The report highlights the upcoming WWDC 2025, emphasizing the integration of AI into system-level experiences and the expected innovations in hardware and software from Apple [12][15][17] - Recent financial performances from companies like Credo, Broadcom, and Nvidia indicate strong growth driven by AI-related demands, with significant revenue increases reported [20][24][29] - The report notes the resurgence of interest in AI glasses, with multiple new products launched, indicating a growing market for augmented reality applications [6][8] Summary by Sections 1. Weekly Perspective - WWDC 2025 is set to showcase AI software and hardware upgrades, with Apple expected to unveil significant updates across its operating systems [12][15] - Credo's stock has surged over 180% due to its focus on AI and high-speed interconnects, with Q4 revenue reaching $170 million, a 25.9% quarter-over-quarter increase [20][22] - Broadcom reported Q2 revenue of $15 billion, a 20% year-over-year increase, driven by strong demand for AI-related products [24][25] - Nvidia's Q1 revenue reached $44.06 billion, a 69% year-over-year increase, with significant contributions from data center and gaming sectors [29][30] 2. AI Glasses Market - The report discusses the launch of new AI glasses by companies like Raybird and Rokid, which are expected to enhance user experiences by integrating smartphone functionalities [6][8] - The AR glasses market is experiencing renewed interest, leading to increased investments in upstream near-eye display projects [6][8] 3. Panel and Display Innovations - The report notes a divergence in the panel market, with display panels maintaining an upward trend due to tariff exemptions and proactive inventory management by brands [7][8] - TCL and Alibaba Cloud have announced a strategic partnership to enhance AI capabilities in semiconductor displays and smart terminals [7][8]

Investment Rating - The report maintains a "Recommended" rating for the electric power equipment sector [6][18]. Core Viewpoints - The overseas AI companies have frequently exceeded expectations, indicating the arrival of a resonant era between domestic and foreign AI sectors. This week, companies like Credo and Wistron reported better-than-expected Q1 results, while major players in the copper cable and AI application sectors, such as Amphenol and Palantir, continue to see stock price increases [5][14]. - The domestic AI sector is experiencing a rebound, driven by strong performance metrics, such as the monthly payment amount for Keling AI exceeding 100 million RMB for two consecutive months [5][14]. - The report suggests that the current AI market cycle will see continued valuation recovery in overseas chains, while domestic chains have a straightforward logic with strong upward expectations. Specific recommendations include focusing on Weichai Heavy Machinery, Kehua Data, Tonghe Technology, and others in the HVDC and server power supply segments [6][17]. Summary by Sections Investment Viewpoints - The report emphasizes that both overseas and domestic AI sectors are poised for significant growth, with specific recommendations for companies like Weichai Heavy Machinery and Kehua Data, which are expected to benefit from increasing market penetration and power enhancements [6][17]. Industry Dynamics - The report highlights recent advancements in AI, including the launch of the Qwen3-Embedding series by Alibaba, which has shown exceptional performance in text representation and ranking tasks [5][14]. - It also notes the ongoing developments in the education sector with the introduction of EduBench, a comprehensive evaluation benchmark for educational scenarios [20]. Key Companies and Earnings Forecast - The report provides a detailed earnings forecast for several key companies, including: - Weichai Heavy Machinery (32.09 RMB, EPS: 0.56 in 2024, PE: 30.99) [19] - Kehua Data (43.5 RMB, EPS: 0.68 in 2024, PE: 42.35) [19] - Yingweike (26.72 RMB, EPS: 0.61 in 2024, PE: 66.43) - Buy rating [19] - Maigemi Te (47.21 RMB, EPS: 1.08 in 2024, PE: 43.71) - Buy rating [19] - Tonghe Technology (18.77 RMB, EPS: 0.13 in 2024, PE: 144.38) - Increase rating [19] - Oulutong (112.04 RMB, EPS: 2.65 in 2024, PE: 40.32) [19] - Shenling Environment (35.54 RMB, EPS: 0.43 in 2024, PE: 82.65) - Buy rating [19]

Core Insights - Credo Technology Group Holding Ltd (CRDO) stock has increased by 50.2% over the past month, outperforming the Electronic-Semiconductors sector's growth of 18.8% and the broader Computer and Technology sector's growth of 10.3% [1][8] - The company's fiscal Q4 revenues surged 179.7% year over year to $170 million, driven by strong product sales and AI demand [3][8] - CRDO expects fiscal 2026 revenues to exceed $800 million, indicating an 85% year-over-year growth [11][8] Financial Performance - CRDO's fiscal 2025 revenues rose 126% year over year to $436.8 million, with significant contributions from product sales [3][8] - The company anticipates first-quarter fiscal 2026 revenues between $185 million and $195 million, representing a 12% increase at the midpoint [11] - Non-GAAP gross margin is projected to be between 64-66%, with operating expenses estimated at $54 million to $56 million [11] Product and Market Dynamics - The Active Electrical Cables (AEC) product line has shown double-digit sequential growth, particularly in the data center market, due to its reliability compared to traditional optical solutions [4] - CRDO's Optical Digital Signal Processors (DSPs) are gaining momentum, with expectations for increased customer diversity and revenue growth [5][8] - The demand for PCIe and Ethernet retimers is robust, particularly in AI server applications, indicating a strong market position for CRDO [9][10] Competitive Positioning - CRDO's stock performance has significantly outpaced competitors like Broadcom, Marvell, and Cirrus Logic, which have seen gains of 22.3%, 14.2%, and 3.4%, respectively [15] - The company is trading at a forward 12-month Price/Sales ratio of 18.03, higher than the sector average of 8.21, indicating a premium valuation [16] Analyst Sentiment - Analysts have revised earnings estimates upwards in the past 60 days, reflecting increased confidence in CRDO's growth trajectory [12] - The company maintains a Zacks Rank 1 (Strong Buy), supported by strong business momentum and positive guidance [18]