Core Insights - Credo Technology Group Holding Ltd (CRDO) has experienced significant revenue growth, driven by strong demand for high-speed connectivity solutions despite facing tariff challenges and macroeconomic uncertainties [1][3][10] - The company's operating margin expanded by 2,500 basis points in fiscal 2025, indicating effective operational discipline and profitability improvements [2][10] - CRDO anticipates revenues exceeding $800 million in fiscal 2026, representing over 85% year-over-year growth, with a projected non-GAAP net margin approaching 40% [4][10] Revenue Growth - CRDO's revenues nearly tripled from the first to the fourth quarter of fiscal 2025, showcasing its ability to adapt to market shifts [3][10] - The company has seen strong growth in its HiWire Active Electrical Cables (AECs), optical products, and retimer products, with a robust pipeline for future offerings [3][4] Operational Efficiency - Operating expenses for CRDO grew at a significantly slower rate than revenues, contributing to a substantial increase in profitability [2][10] - The company is strategically aligned with AI and data center trends, enhancing its operational excellence [4] Market Position and Competitors - CRDO's share price increased by 41.4% year-to-date, outperforming the Electronics-Semiconductors industry, which grew by 13.1% [11] - The forward 12-month price/sales ratio for CRDO is 19.63, significantly higher than the sector's average of 8.67, indicating strong market positioning [12] Earnings Estimates - The Zacks Consensus Estimate for CRDO's earnings for fiscal 2026 has seen significant upward revisions over the past 60 days, reflecting positive market sentiment [13][14]

Core Insights - The article emphasizes the importance of exploring lesser-known tech stocks for investment opportunities, highlighting companies with significant growth potential outside of the major players like Apple and Microsoft [2][3] Group 1: Company Highlights - **DoorDash**: The company has expanded its advertising services with AI-powered tools to help businesses enhance their presence on the platform. It also acquired the adtech platform Symbiosys to improve advertising across multiple digital channels [5][6][7] - **Sea Limited**: This Singapore-based company operates in digital entertainment, e-commerce, and financial services, reporting a revenue of $4.8 billion in Q1, up 29.6% year-over-year, and profits of $2.2 billion, up 43.9% [9][10] - **Airbnb**: The platform has facilitated over 2 billion stays since its inception in 2007, and despite recent growth slowdowns, it continues to show solid performance, with notable investment from Ark Invest [11][12] - **Coinbase Global**: The platform manages $328 billion in assets and has a quarterly trading volume of $393 billion, positioning itself as a key player in the cryptocurrency market [13][14] - **Snowflake**: The cloud-based data platform reported $1 billion in revenue in Q1, up 26% year-over-year, and estimates its market opportunity will grow from $170 billion in 2024 to $355 billion by 2029 [15][16] - **Robinhood Markets**: The platform manages $255 billion in assets, up 89% from the previous year, and serves 25.9 million customers, reflecting a 7% increase [17][18] - **Marvell Technology**: The company reported a record revenue of $1.89 billion in Q1, driven by increased demand for AI infrastructure [19][20] - **Cloudflare**: The cybersecurity company operates a massive network with servers in 330 cities and 125 countries, capable of reaching 95% of the global population within 50 milliseconds [21][22] - **Block**: Formerly known as Square, the company has evolved to focus on blockchain and Bitcoin, offering various financial services including Bitcoin mining and wallets [23][24]

Core Viewpoint - In the rapidly growing artificial intelligence (AI) sector, identifying undervalued stocks can be achieved by analyzing price/earnings-to-growth (PEG) ratios rather than just price-to-earnings (P/E) ratios [1][2] Group 1: Investment Opportunities in AI Stocks - Stocks with PEGs under 1 are generally considered undervalued, with notable mentions including Advanced Micro Devices (AMD), Broadcom, Salesforce, Nvidia, and Adobe [2] - Advanced Micro Devices (AMD) has a forward PEG of 0.2, with a 36% revenue increase last quarter to $7.44 billion, driven by a 57% surge in data center segment revenue to $3.7 billion [5][6] - Broadcom has a forward PEG of 0.4, reporting a 25% revenue increase to $14.9 billion, primarily due to a 70% rise in networking revenue, and is expanding into custom AI chips [9][10] - Salesforce has a forward PEG of 0.5, with its Data Cloud annual recurring revenue (ARR) increasing by 120% year over year to over $1 billion, and its Agentforce platform reaching ARR of $100 million shortly after launch [13][14] - Nvidia, a leading AI growth stock, has a forward PEG of 0.7, with data center revenue growing ninefold over two years and maintaining a 92% market share in the GPU space [16][17] - Adobe, with a forward PEG of 0.8, is categorized as growth at a reasonable price (GARP), utilizing AI to enhance its creative software solutions and maintain steady revenue growth [19][20] Group 2: Market Dynamics and Future Growth - AMD's growth is expected to accelerate as the AI market shifts from training to inference, which is anticipated to be a larger market opportunity [7][8] - Broadcom's custom AI chip market opportunity is projected to be between $60 billion to $90 billion by fiscal year 2027, indicating significant growth potential [10] - Salesforce aims to integrate its Data Cloud and Agentforce with existing applications to enhance customer satisfaction and drive adoption [15] - Nvidia's continued demand for its latest chips positions it well for future growth in the AI data center buildout [18] - Adobe's AI initiatives, particularly the Firefly generative AI model, are expected to support its revenue growth moving forward [21]

Core Insights - Marvell Technology, Inc. reported stronger-than-expected first-quarter results for fiscal 2026, with non-GAAP earnings of 62 cents per share, exceeding the Zacks Consensus Estimate by 1.64% and increasing 158% year over year [1][2] - The company's first-quarter revenues reached approximately $1.9 billion, surpassing the Zacks Consensus Estimate by 1.04% and growing 63% year over year [2][4] Financial Performance - Non-GAAP gross profit was $1.13 billion, reflecting a year-over-year increase of 56.6% and a sequential increase of 3.8%, while the non-GAAP gross margin contracted to 59.8% [9] - Non-GAAP operating profit increased to $647.3 million, up 239.6% year over year and 5.7% sequentially, with an operating margin of 34.2% [10] Revenue Breakdown by Segment - Data center revenues were $1.44 billion, a 76% increase year over year and 5% sequentially, accounting for 76% of total revenues [4] - Enterprise networking revenues rose 16% year over year and 4% sequentially to $178 million, representing 9% of total revenues [5] - Carrier infrastructure revenues soared 93% year over year and 31% sequentially to $138 million, making up 7% of total revenues [6] - Automotive/Industrial revenues decreased 2% year over year and 12% sequentially to $76 million, constituting 4% of total revenues [7] - Consumer revenues increased 50% year over year but declined 29% sequentially to $42 million, representing 2% of total revenues [8] Future Guidance - For the second quarter, Marvell expects revenues to be around $2 billion (+/- 5%), with a projected non-GAAP gross margin in the 59%-60% range and operating expenses estimated at $495 million [11] - The company projects non-GAAP earnings per share for the fiscal second quarter to be 67 cents per share (+/- 5 cents), indicating a year-over-year improvement of 116.7% [12]

Core Viewpoint - Amazon's stock is currently experiencing a significant decline, presenting a potential buying opportunity for investors as it trades at one of its cheapest valuations in years [1][2]. Valuation - Amazon's trailing price-to-earnings (P/E) ratio is 31, with a forward P/E of 27, marking a substantial decrease from its historical averages [2]. - Over the past decade, Amazon's average trailing P/E has been 137, with a three-year average of nearly 84, indicating that the current valuation is exceptionally low [3]. Investment Strategy - Amazon has a history of thriving after periods of heavy investment, which has transformed it into a leading e-commerce and logistics company [6][7]. - The company is currently investing heavily in artificial intelligence (AI) and data center infrastructure, planning to allocate $100 billion by 2025 to meet rising demand for AI workloads [9][10]. Business Performance - Amazon's North American and International segments saw a 74% increase in operating income last quarter, driven by strong operating leverage and AI integration [11]. - The advertising services revenue grew by 18% to $17.3 billion, positioning Amazon as the third-largest digital advertiser globally [13]. Cloud Computing - Amazon Web Services (AWS) remains the most profitable and fastest-growing segment, with a 19% revenue increase last quarter, benefiting from AI workload demands [14][15]. - The development of custom AI chips through Annapurna Labs provides Amazon with a competitive edge in performance and cost efficiency [15].