Credo Technology (US:CRDO) SINOLINK SECURITIES·2025-09-04 08:43Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [9]. Core Insights - The company is projected to achieve significant revenue growth, with FY26 revenue expected to reach $985 million, representing a 125.5% year-over-year increase. For FY27 and FY28, revenues are forecasted at $1.362 billion and $1.710 billion, respectively, with growth rates of 38.3% and 25.6% [5][9]. - The company has diversified its customer base, with three customers contributing over 10% of revenue in FY26Q1, and anticipates additional large cloud vendor clients entering the market [8]. - The AEC (Application-Specific Integrated Circuit) solutions are expected to benefit from the growing demand in AI and cloud services, leading to increased sales and market share [9]. Financial Summary - For FY24, the company is expected to generate revenue of $193 million, with a projected EBITDA of -$8.97 million. By FY26, revenue is expected to reach $985 million with a positive EBITDA of $286.78 million [5][12]. - The company is expected to turn profitable by FY26, with a projected net profit of $250 million, increasing to $458 million by FY28 [5][12]. - The projected earnings per share (EPS) for FY26 is $1.45, increasing to $2.65 by FY28 [5]. Performance Analysis - In FY26Q1, the company reported revenue of $223 million, a 274% increase year-over-year, and a GAAP net profit of $63.4 million, indicating a turnaround from previous losses [7]. - The company expects continued revenue growth in FY26Q2, with guidance of $230 to $240 million [7]. Market Position - The company is positioned as a leader in the AEC market, with expectations of benefiting from the increasing demand for high-speed data solutions driven by AI and cloud computing [9]. - The growth in GPU and ASIC shipments is anticipated to further enhance the demand for the company's AEC products [9].