Credo Technology (US:CRDO) Yahoo Finance·2026-01-14 15:50Company Overview - OpenAI's ChatGPT reached 1 million users in its first week and now processes over 2.5 billion prompts daily, showcasing rapid AI adoption [1] - Credo Technology Group (NASDAQ: CRDO) is positioned to outperform in 2026 and beyond as AI infrastructure builds out [2] Market Performance - Credo has a market cap of $27 billion and has seen its stock price more than double in the past year, with a 1,250% increase over the last five years [3] - Despite a recent 17% decline from its all-time high in December 2025, Credo's stock remains attractive as profit margins rise [8] Financial Growth - Credo's revenue tripled year over year in Q2 of fiscal 2026, with a sequential growth of 20.2% [6] - The midpoint of Credo's Q3 revenue guidance is $340 million, indicating a 152% growth rate and 27% sequential growth [6] Industry Position - Credo's high-speed data connectivity solutions are essential for AI training and inference clusters, making it a key player in the AI boom [5][10] - The company is gaining market share despite competition, supported by increased AI spending from big tech companies [7][10] Valuation Metrics - Credo's stock trades at a 130 P/E ratio, with a forward P/E ratio of 42, reflecting significant profit growth [9]