Credo Technology (CRDO) is Benefiting from AI Data Center Buildouts

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]