Key Takeaways CRDO shares have jumped 144% in three months, nearing its 52-week high on strong AI-driven product demand. AECs, optical DSPs and retimers continue to witness traction, driving $436.8M in revenues in fiscal 2025. CRDO projects over $800M in fiscal 2026 revenues amid tariff and market risks.Credo Technology Group Holding Ltd (CRDO) has been on a tear, with the stock appreciating 144.2% over the past three months. Riding on momentum fueled by AI proliferation and increasing demand for faster a ...

Credo Technology Group Holding Ltd (CRDO) is emerging as a powerhouse as the world races to build the next generation of AI data centers. Credo has seen explosive growth, with fiscal 2025 revenues hitting $436.8 million, a 126% year-over-year increase driven by strong demand for its innovative and energy-efficient high- performance connectivity solutions. Demand continues to accelerate, particularly among hyperscaler customers supporting advanced AI services. In the fourth quarter of fiscal 2025, revenues s ...

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]

Summary of Astera Labs Conference Call (May 20, 2025) Company Overview - **Company**: Astera Labs (ALAB) - **Industry**: Semiconductor, specifically focusing on AI infrastructure connectivity solutions Key Points and Arguments 1. **AI Compute Demand**: The complexity of AI compute models is increasing, leading to larger AI compute clusters that require enhanced interconnectivity solutions [4][28] 2. **UA Link Technology**: UA Link is introduced as an open, high bandwidth, low latency connectivity architecture designed to improve interconnect fabric in GPU or XPU rack scale architectures [5][12] 3. **Product Portfolio**: Astera Labs has expanded its product offerings to include smart fabric switches, Ethernet retimers, and CXL controllers, all aimed at enhancing AI connectivity [14][16] 4. **Collaboration with NVIDIA**: Astera Labs is part of NVIDIA's NVLink fusion ecosystem, which aims to integrate custom compute and AI processing XPU systems [16][68] 5. **Market Opportunity**: The total addressable market (TAM) for Astera's Scorpio SmartFabric Switch family is estimated at approximately $5 billion by 2028, with UA Link expected to unlock additional multibillion-dollar opportunities [74][78] 6. **Challenges in AI Infrastructure**: Key challenges include power consumption, cluster utilization, and the integration of specialized AI accelerators into cloud infrastructure [31][32] 7. **Scalability and Efficiency**: UA Link aims to provide a scalable, efficient, and open connectivity solution that addresses the challenges of large cluster scaling and enhances total cost of ownership (TCO) [54][55] 8. **Interoperability**: The UA Link consortium is focused on creating an open, interoperable standard for XPUs, which will facilitate a resilient supply chain and enable multiple vendors to offer compatible solutions [56][57] Additional Important Content 1. **Memory Semantics**: UA Link utilizes a memory semantic protocol that simplifies the access mechanism for memory transactions across XPUs, enhancing efficiency [45][48] 2. **Switching Architecture**: The design of UA Link's switching architecture is kept simple to optimize performance and maintain low latency [49] 3. **Ecosystem Development**: The consortium is working on specifications for IO chiplets and in-network compute capabilities to further enhance the scalability and efficiency of AI infrastructure [50][83] 4. **Management Software**: Effective management software is critical for the integration and operation of the UA Link ecosystem, providing telemetry and cluster utilization information [63] 5. **Future Vision**: Astera Labs aims to be a leading supplier of connectivity solutions for AI at rack scale, continuously expanding its product lines to meet the evolving needs of the market [66][71] This summary encapsulates the core discussions and insights shared during the Astera Labs conference call, highlighting the company's strategic direction and the broader implications for the AI infrastructure market.

Credo Technology Group Holding Ltd (CRDO) stock has slipped 33.3% over the past three months, significantly more than the Electronic-Semiconductors industry’s decline of 16.4%. The broader Computer and Technology sector and S&P 500 Composite have registered declines of 11.5% and 7.8%, respectively, over the same time frame. The markets since April have been affected by evolving U.S. trade policy and diminishing macroeconomic visibility. Price PerformanceImage Source: Zacks Investment ResearchCRDO gained 6.1 ...