logo
This AI infrastructure leader is setting up for a move to all-time highs, according to the charts

This AI infrastructure leader is setting up for a move to all-time highs, according to the charts

CNBC17-06-2025
Credo Technology is a relatively new company that came public in 2022 at an approximate $1.5 billion valuation. Amidst the AI boom in the past three years, this company has grown quickly to a $13 billion market cap company. From the looks of things, the stock is going higher. We added the name to our Active Opps portfolio based on technical and fundamental reasons I'll outline below. Fundamentals first: This company is a leader in several areas of the AI infrastructure buildout, particularly high-speed connectivity solutions. A data center is only as helpful as the individual processors and chips can quickly communicate with each other. The company builds both hardware and software stacks that increases the speed, reliability, and security of data via energy efficiencies and protocols to back up their systems. On conference calls, the company is guarded about who exactly the customers are, but large data center hyperscalers include Amazon and Microsoft. The bad news is they have relatively few clients, but the good news is these massive data center buildouts are probably going to continue the buildout for quarters to come. The growth of CRDO indicates that their customer roster may be expanding. Revenue growth (shown below the weekly chart below) in the past four years has been 81.4%, +72.99%, +4.76% and 126.34%; it's expected to grow another 85.37% to $809 million in 2026. The company is also maintaining 62%-65% gross margins, the highest among their competitors. Turning to the technicals, the weekly chart shows a pending breakout above all-time highs at $86.49 that should set up a possible test of the first Fibonacci extension (compared to the 2025 decline) at $116.35. With 89 cents earnings per share (non-GAAP) expected in 2026 for a crazy rich forward valuation of 130 times, this company can't afford any stumbles. But the volume in the past three weeks indicates institutions are accumulating and creating support above the $60 area. Moving to the daily chart, there is a near-term breakout at around $83 that sets up a test of those all-time highs around $86.70. Using some of the advanced technical modeling we do, the immediate upside target is $101.61 to book some profits. But I do want to keep a chunk for the move up to that weekly $116.35 target. Near-term risk/stop loss for us will be a move back below $70.00 where I will start to reduce position sizing and manage risk . In our Active Opps portfolio, we hold a 5% allocation in CRDO. -Todd Gordon, founder of Inside Edge Capital, LLC We offer active portfolio management and regular subscriber updates like the idea presented above. DISCLOSURES: Gordon owns CRDO personally and in his wealth management company Inside Edge Capital All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Clarivate Plc (CLVT) Appoints Maroun S. Mourad as President of Intellectual Property Division
Clarivate Plc (CLVT) Appoints Maroun S. Mourad as President of Intellectual Property Division

Yahoo

timea day ago

  • Yahoo

Clarivate Plc (CLVT) Appoints Maroun S. Mourad as President of Intellectual Property Division

With a low price-to-earnings multiple and a significant presence in Seth Klarman's investment portfolio, Clarivate Plc (NYSE:CLVT) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman. A technical analyst using a cloud-based analytics dashboard for financial services. On July 30, 2025, Clarivate Plc (NYSE:CLVT) appointed Maroun S. Mourad to the role of President of its Intellectual Property segment, effective September 8, 2025. The newly appointed President will succeed Gordon Samson, who will be retiring at year-end after decades in the IP industry. Mourad brings over 25 years of experience in data analytics, software, and technology-enabled services. He most recently led the Claims Solutions division at Verisk Analytics, handling product portfolios, services, and acquisitions globally. Clarivate Plc (NYSE:CLVT)'s CEO sees the appointment as a strategic move to drive long-term, predictable growth in the IP segment. Clarivate Plc (NYSE:CLVT)'s IP segment offers trusted data, software, and expertise across the full lifecycle of intellectual property assets. With its data, insights, workflow solutions, and expert services across various sectors, Clarivate Plc (NYSE:CLVT) operates as a leading global provider of transformative intelligence. It is included in our list of cheap value stocks to buy. While we acknowledge the potential of CLVT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best AI Stocks to Buy Under $3 and Bill Ackman Stock Portfolio: Top 10 Stock Picks. Disclosure: None. Sign in to access your portfolio

'It is a great honour': Enniskillen barber shop in running for national award
'It is a great honour': Enniskillen barber shop in running for national award

Yahoo

time2 days ago

  • Yahoo

'It is a great honour': Enniskillen barber shop in running for national award

A barber shop with a twist is in the running for a national award. Headhunters Barber Shop and Railway Museum in Enniskillen is one of eight finalists in the UK-wide Love Your High Street Awards 2025, organised by the British Independent Retailers Association. The barber shop is the only finalist from Northern Ireland and was selected from amongst hundreds of independent businesses across the UK. Read more: Library demolition could see discovery of 'archaeological deposits' Founded in 1981 by brothers Nigel and Gordon Johnston, Headhunters Barber Shop & Railway Museum combines traditional barbering with a celebration of Irish railway history. In 2002, the brothers converted an adjoining ladies' salon into a railway museum to house their growing collection of artefacts. The museum, now one of the largest collections of small Irish railway memorabilia, covers the Great Northern Railway (Ireland), the Sligo, Leitrim & Northern Counties Railway, and the Clogher Valley Railway. Headhunters has welcomed several well-known visitors over the years, including Gloria Hunniford, Richard Wilson, Laurence Llewelyn-Bowen, Adrian Dunbar, and Rob Bell. The business now serves third-generation customers, reflecting its long-standing presence in the Enniskillen community. Operated entirely by volunteers, the museum is a registered charity and has previously received the Queen's Award for Voluntary Service. Admission is free, and the site is dog-friendly. It regularly hosts school groups, community events, and heritage talks. Read more: Classic satire and horror to hit the stage in Fermanagh this August Nigel Johnston, co-founder of Headhunters, said: "It is a great honour for us to be recognised as a small family barber shop and railway museum from our island town of Enniskillen and the only finalist from Northern Ireland. "The confirmation that we had firstly been nominated by our wonderful customers and then selected as a finalist came as a complete surprise and is very humbling for us and all the railway museum volunteers. "As the world's only barber shop and railway museum, we enjoy meeting visitors from far and wide, sharing our heritage on the high street. "We are overwhelmed by the response from the local community and further afield to the news that we have been selected as a finalist, and we are grateful for everyone's support, showing how much our high street is loved." The Love Your High Street Awards celebrate independent businesses that help keep high streets vibrant and are decided by public vote. Visitors and supporters can vote for Headhunters via the Headhunters Barber Shop & Railway Museum Facebook page or through the British Independent Retailers Association website. The public vote closes on August 27, 2025, and the winner will be announced on September 1.

Nearly 20 Years as an Investment Adviser Taught Me 6 Absolute Truths About Money Management
Nearly 20 Years as an Investment Adviser Taught Me 6 Absolute Truths About Money Management

Yahoo

time3 days ago

  • Yahoo

Nearly 20 Years as an Investment Adviser Taught Me 6 Absolute Truths About Money Management

After working for a major international brokerage firm, along with my own private asset management company, for nearly 20 years, I've seen it all when it comes to money management. From family feuds over inheritances to middle-class families being able to afford college for their kids, the profession offered me a front-row seat to the highs and lows of personal finance. But through all the ups and downs, a few immutable truths revealed themselves time and time again. Here are the most important lessons I've garnered from my nearly two decades in the industry. Check Out: Read Next: Don't Let Your Emotions Lead You Astray As Michael Douglas's character Gordon Gekko famously says in the movie 'Wall Street,' 'Don't get emotional about stock, it clouds your judgement.' While coming from a fictional character, the sentiment is spot-on. Fear and greed are the two most dominant emotions when it comes to investing in the stock market, and unfortunately, each one seems to pop up at the exact right time to encourage bad decisions. When markets scream higher, investors get euphoric. Conversely, when markets sell off sharply, investors get fearful, sometimes to the point of panic. These dual scenarios lead to situations in which investors buy high and sell low, when they should be doing the exact opposite. In the words of billionaire CEO Warren Buffett, investors should 'be greedy when others are fearful, and fearful when others are greedy.' Don't let your emotions twist this around and lead you to doing the opposite. See More: Your Most Important Financial Obligation Is Saving When asked which financial obligation is the most important, many clients will list mortgage/rent, food and household bills like utilities as essential. And while it's true that all of these bills must be paid, if you prioritize them ahead of your savings, you'll likely find that you end every month without any money at all to invest. This is where the famous mantra 'pay yourself first' comes into play. By setting aside money for your savings and investments before you pay any bills — via automated transfers, of course — you force yourself to live beneath your means. If you find yourself coming up short in terms of paying your monthly expenses, it means it's time to trim your costs, not reduce your savings. Draft a Clear, Unassailable Estate Plan One of the saddest parts of being a financial advisor is watching how families tear themselves apart fighting for 'their share' of an inheritance. Many of these family disputes can be nipped in the bud by drafting a clearly worded estate plan and sharing it with family members ahead of time. When your explicit wishes are mapped in advance and disclosed to all of your beneficiaries, you greatly reduce the chance of in-fighting among family members after your passing. You're Not Likely To Beat the Stock Market Let's be blunt — the average investor doesn't do a very good job at outperforming the stock market. But there's no shame in that; most professional money managers don't consistently beat the S&P 500 over time either. With that in mind, it makes a lot of sense to avoid active trading. Not only are you likely to come up short versus the overall market, day trading also requires extensive time and effort, and any gains you achieve are taxed at higher, short-term capital gains rates. Keep Things Simple All things considered, the best single investment for generating long-term wealth may be a simple S&P 500 index fund. Not only does this 'guarantee' a near-market return, it's simple, easy and cost-effective. Diversification is certainly an option, but be wary of high-cost, complex investments that promise market-beating returns, as they typically come up short. Even Warren Buffett has often said that 'a low-cost index fund is the most sensible equity investment for the great majority of investors.' After he passes, Buffett has instructed the trustee of his estate to place 90% of his assets into an S&P 500 index fund, so he's putting his own personal money where his mouth is. Compound Interest Is a Miracle — but You've Got To Be Patient The saying that compound interest is the 'eight wonder of the world' is often attributed to legendary genius Albert Einstein. But regardless of the true origin of the expression, the sentiment is accurate. If you invest $100,000 at a 6% rate of return, collecting your interest every year, you'll end up with $220,000 after 20 years — $120,000 in income plus your original $100,000 investment. But if you instead reinvest that money every year, so that you earn interest upon interest, you'll end up with closer to $331,000. That's an additional $111,000, or more than 50% more. While some investors understand the power of compounding, many do not realize that you have to be patient to truly reap its benefits. As your compounded balance increases, your returns accelerate. In the above example, if you stopped compounding after 10 years, you'd only earn approximately $82,000. The additional $149,000 is earned in the ensuing 10 years. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on Nearly 20 Years as an Investment Adviser Taught Me 6 Absolute Truths About Money Management

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store