Pre-Markets Open in The Red
Pre-market futures are still in the red at this hour, but threaten to break out into positive territory compared with where we were overnight. We're also bifurcated presently: -40 points, roughly, on both the Dow and S&P 500, but -260 points on he tech-heavy Nasdaq.
A report that NVIDIA NVDA will take a $5.5 charge on its H20 AI chips that were believed to be headed to China. The ongoing trade war between the U.S. and China has snuffed this out — news reports refer to this as being 'curbed' — and sent NVIDIA shares down -6% in pre-market trading. AMD AMD is doing even worse, Broadcom AVGO a bit better — but still all down.
We remain at the mercy of trade tariff policy for the foreseeable future, and this goes for plenty of economic reports for last month, as well. To wit, U.S. Retail Sales for March reached +1.4% on headline, 20 basis points (bps) ahead of expectations. Ex-autos, +0.5% is a strong showing, even if it is still -20 bps below the big upward revision to February's number.
Ex-autos and gas swung up to +0.8% last month, equalling the upward revision for the previous month (which itself was ratcheted up 30 bps) and the strongest month since September 2024's +1.2%. The Control number, which feeds other economic data like PCE (which comes out at the end of this month), was a bit weaker, relatively: +0.4%, from the upwardly revised +1.3% for February.
At a glance, these figures all seem to be U.S. companies getting ahead of the tariffs, which began two weeks ago today, April 2nd. Remain unconvinced? Check auto parts deliveries last month, which rose +5.3%. This resembles more a year-over-year number than a month-over-month one. Perhaps we'll need to compare these figures to the coming months, but it stands to reason we see a 'pull-forward' in this data.
Q1 earnings season continues to heat up. Major insurance provider and Dow component The Travelers TRV posted a strong beat in its Q1 earnings ahead of the opening bell: $1.91 per share was nearly +200% stronger than the 64 cents in the Zacks consensus. Revenues of $11.87 billion, however, came in -2.17% from estimates. Shares are up +2.5% on the news, adding to the stock's +3.6% year to date.
Abbott Laboratories ABT beat on its Q1 earnings by 2 cents to $1.09 per share, while missing slightly on its top line: $10.36 billion versus $10.42 billion expected. Better performance in its Pharma and Nutrition space were offset somewhat by lower numbers from its Diagnostics segment. Shares are down marginally, but still up more than +10% year to date.
U.S. Bank USB keeps the train of big banks reporting earnings this week, notching slight beats on both top and bottom lines: earnings of $1.03 per share on $6.96 billion in revenues outpaced expectations by +4% and +0.6%, respectively. Shares are up +1.4% in today's pre-market, but still have a long climb back from -17% year to date.
Swedish auto parts provider Autoliv ALV posted strong beats for both earnings and revenues in its Q1 report this morning, beating on earnings per share by +25% and +4.25% on quarterly sales. Again, we sense some 'beat the tariffs' trading going on with these figures, but shares are up +8% ahead of the regular session, making up a good chunk of its -12% level year to date.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Autoliv, Inc. (ALV) : Free Stock Analysis Report
U.S. Bancorp (USB) : Free Stock Analysis Report
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
27 minutes ago
- Business Insider
LogicMark Stock (LGMK) Sinks 45% as Listing Changes
LogicMark (LGMK) stock sank on Monday after the company's shares were moved to OTC Markets. This comes after it was delisted from the Nasdaq due to the shares being non-compliant with listing regulations. In LGMK stock's case, the shares failed to maintain a price above the $1 minimum requirement. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter LogicMark intends to continue evaluating the various tiers available on OTC Markets and is also considering a potential return to a national exchange. CEO Chia-Lin Simmons noted the company had $15 million at the end of Q1, providing it with 'further runway to advance our strategic priorities.' LGMK stock was down 45.65% as of this writing. The shares have also dropped 99.23% year-to-date and 99.94% over the last 12 months. Is LogicMark Stock a Buy, Sell, or Hold? Wall Street's coverage of LogicMark stock is thin. Instead, Spark, TipRanks' AI analyst, rates LGMK shares at Neutral (42). It highlights weak financial performance and the stock's recent delisting as concerns investors should note.
Yahoo
42 minutes ago
- Yahoo
CRDO Tanks 33% in 3 Months: Should You Hold the Stock or Make an Exit?
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. Image Source: Zacks Investment Research CRDO gained 6.1% yesterday and closed trading at $51.39, but the stock is down 41% below its 52-week high of $86.69. This is likely to spook investors as they contemplate how to strategize their investment now. The natural question is: Should you stay invested or exit now? Let's weigh the pros and cons of this AI stock and see whether it is worth staying invested or not. Credo is a provider of high-performance serial connectivity solutions for the data infrastructure market. Amid exponential data growth and rapid AI proliferation, market demand for faster and energy-efficient connectivity solutions continues to increase. This bodes well for Credo. One of Credo's key strengths lies in its Active Electrical Cables (AEC) product line, which posted triple-digit sequential growth in the third quarter of fiscal 2025. The growth is driven by its increasing adoption in the data center market. The demand for AECs is increasing as ZeroFlap AECs offer more than 100 times improved reliability than laser-based optical solutions. This made AECs an increasingly attractive option for data center applications, contributing to the new expansion of AEC usage and further solidifying Credo Technology's position in the market. Image Source: Zacks Investment Research Credo is also focused on expanding its product portfolio to include a portfolio of PCIe solutions, which will address the growing demand for AI scale-out and scale-up networks. The company expects the PCIe products to considerably expand its total addressable market. This expansion into PCIe connectivity further solidifies the company's competitive positioning in the high-performance computing and AI markets. Momentum in the optical business, particularly for Optical Digital Signal Processors (DSPs), bodes well. In April 2025, CRDO unveiled the innovative Lark Optical DSP family, engineered to transform 800G optical transceivers. The Lark portfolio has two distinct optical DSP products. The Lark 800 is a high-performance, low-power DSP optimized for fully retimed 800G transceivers, designed to meet the stringent power and cooling requirements of hyperscale AI data centers. The Lark 850 is an ultra-low-power 800G Linear Receive Optics DSP, consuming under 10W, making it an ideal solution for AI-driven data environments where power efficiency is exceptional. CRDO's PCIe retimers and Ethernet retimers saw strong customer interest, especially for scale-out networks in AI servers. This growing demand underscores the increasing importance of high-performance solutions in the rapidly expanding AI server market. PCIe retimer demand is expected to exceed $1 billion by 2027, positioning Credo Technology for significant future revenue growth. For the fourth quarter of fiscal 2025, CRDO expects revenues between $155 million and $165 million. The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $160 million, suggesting growth of 163.2% from the year-ago quarter's reported figure. For the third quarter of fiscal 2025, CRDO reported $135 million in revenues, up 87% sequentially and 154% year over year, beating the Zacks Consensus Estimate by 12.5%. This surge was mainly driven by its largest hyperscale customer, which significantly scaled the production of AI platforms, reflecting the growing demand for AI-powered connectivity solutions. Despite Credo's strong performance and innovative solutions, several challenges pose headwinds to its prospects. CRDO's business is heavily tilted toward AI-related infrastructure and the hyperscale cloud market spending. While these segments are currently experiencing high growth, they are also cyclically dependent on AI capex spending, which could decelerate after initial buildouts. Credo's non-GAAP operating expenses in the fiscal third quarter surged 16% sequentially to $43.8 million, primarily due to higher headcount. Increasing costs could become a problem if the revenue growth does not keep pace. In the last reported quarter, 86% of revenue came from a single end customer. This intense customer concentration risk can impact revenues as the company becomes highly vulnerable to the loss of business from those clients. To diversify its base, CRDO added that it has two additional hyperscalers in qualification and has already achieved volume production with three others. The company expects to ramp up with these two hyperscalers in fiscal 2026. These factors, along with increasing market competition and macroeconomic uncertainties, may impact CRDO's growth trajectory. Credo competes with semiconductor giants like Broadcom Inc. AVGO and Marvell Technology, Inc. MRVL. Analysts also seem wary as reflected in unchanged revisions for earnings estimates in the past 60 days. Image Source: Zacks Investment Research CRDO's 33.3% decline is also much steeper than peers like Broadcom and Cirrus Logic, Inc. CRUS. Broadcom and Cirrus Logic have declined 11.6% and 6.5%, respectively. However, Marvell's stock has declined 48.9% in the same time frame. Credo Technology stock is also not so cheap, as its Value Style Score of F suggests a stretched valuation at this moment. In terms of the forward 12-month Price/Sales ratio, CRDO is trading at 12.92, higher than the Electronic-Semiconductors sector's multiple of 6.97. Image Source: Zacks Investment Research In comparison, Broadcom trades at a forward 12-month P/S multiple of 14.46, while Cirrus Logic and Marvell Technology are trading at a multiple of 2.76 and 5.71, respectively. While Credo appears well-positioned in the AI-driven connectivity space, there are several factors that could exert downward pressure on the stock. Key concerns include customer concentration, competitive pressures, stretched valuation, and overreliance on AI spending. CRDO currently carries a Zacks Rank #3 (Hold), which indicates that investors should wait for a better entry point. However, existing investors can hold the stock as its growth prospects remain intact. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
42 minutes ago
- Yahoo
Bull of the Day: Credo Technology (CRDO)
Credo Technology Group (CRDO) is a key supplier of high-performance serial connectivity solutions for the hyperscale datacenter, 5G carrier, enterprise networking, HPC (high-performance computing), and AI/ML is located in the center of the AI revolution in San Jose, sales growing 120% this fiscal year to $425 million, one of Credo's high demand products is their line of Active Electrical Cables (AEC) which provide high-speed connectivity solutions to data centers and enterprises with heavy AI and cloud computing also makes Digital Signal Processing (DSP) chipsets to facilitate high-bandwidth data transfer with low energy largest and most strategic customers are leading hyper-scalers like Microsoft (MSFT) and Amazon who use Credo's AECs to support AI and cloud its biggest competition comes from Broadcom (AVGO) and Marvell (MRVL) in connectivity solutions for the AI is the AI Market MakerAs I've said for almost eight years, Jensen & Co. have been creating new industries we didn't even know we needed. Once modern data enterprises and research universities caught on to what GPU-CUDA "massively parallel architectures" could do for them, they literally created new uses cases by the thousands per you can simulate anything, use synthetic data to do so, and then run billions of iterations on your experimental idea in a matter of hours, innovation happens much Jensen talks about 1,000-fold advances in science, engineering, and social challenges. And then you understand why NVIDIA (NVDA) power tools are in such demand for the Global 2000 corporations, plus universities, plus nation-states who need to secure and "mine & model" their own my NVIDIA (NVDA) "Top Picks" video on April 21, I compared the new Huawei supercomputer offering to NVIDIA's GB200 one of my points of focus was on the high-speed, low-latency connectivity required for these new rack-scale architectures. I didn't mention Credo, but I'm very curious about how closely they are working together since Jensen likes that "copper is cheaper" and perfectly still useful for direct connections between GPUs in racks.A Fly in the AnointmentThis all sounds great for Credo going forward, especially as they are projected to grow EPS this fiscal year by a whopping 600%!But the stock was richly valued before their Q3 FY2025 (ended April) report. Right now at an $8 billion market cap on forward sales of over $500 million, they are conservatively trading over 16X early March when they reported, CRDO shares had been cut in half from $80 to $40 in just a month just to get back down to earth at 16X sales. So it's safe to say they were trading near 30X sales in Q1 near the stock highs above $ of the big pessimism -- or realism -- even before the trade war tumult, was that Credo's Q3 38% EPS beat and giant 12.5% revenue beat was built around a single large customer who may have contributed as much as 85% of that topline: they didn't disclose Amazon (AMZN) as the big kahuna in their operations, many analysts had sufficient reason to suspect this was the case."As we shared last quarter, we had seven customers that contributed more than 5% of revenue," said Credo Chief Financial Officer Dan Fleming. "And going forward, we expect that three to four customers will be greater than 10% of revenue in the coming quarters and fiscal year, as additional hyperscalers ramp to more significant volumes."I think Credo can keep growing and we won't see another quarter so dependent on one large Makes Credo's AECs More Efficient Than Other Cables?Credo's Active Electrical Cables (AECs) stand out for their efficiency and performance in modern data center environments, especially compared to traditional Direct Attached Copper (DAC) and Active Optical Cables (AOC). Here are the key factors:1. Substantial Power SavingsCredo's AECs consume about 50% less power than traditional DACs and significantly less than AOCs, making them highly energy example, their second-generation HiWire LP SPAN AECs reduce power consumption by nearly half while increasing cable reach by 40% compared to the previous generation.2. Thinner, More Flexible CablesCredo's AECs use thinner copper (as slim as Cat 6 cables), reducing cabling volume by up to 75% compared to passive DACs. This makes them easier to route and manage in dense data center thinner, lighter cables also support longer distances and tighter bend radii, which is critical for modern rack-to-rack and server-to-switch connections.3. Superior Performance and ReliabilityIntegrated digital signal processors (DSPs) and retimers in Credo's AECs deliver better signal integrity, enabling higher data rates (up to 800G and 1.6T) over longer distances without cables offer extreme reliability, with Mean Time Between Failure (MTBF) ratings up to 100 million hours, minimizing downtime and maintenance.4. Plug-and-Play SimplicityCredo's AECs are hot-swappable and easy to deploy, providing a drop-in replacement for AOCs and DACs without the need for additional components or complex also support advanced features like dual Top-of-Rack (TOR) redundancy for enhanced reliability in hyperscale data centers.5. Lower Environmental ImpactBy reducing power consumption and using less plastic and copper, Credo's AECs help customers decrease their environmental Connectivity Innovation for AINow that you know Credo's key "connector" role in the AI economy, let me highlight recent press releases that you should go find on their website if you are interested in learning 18: Credo and XConn to Showcase Seamless GPU Cluster at NVIDIA GTCMarch 26: Credo to Showcase AI Scale Out Fabric Featuring Credo Optical DSPs at OFC 2025March 27: Credo Named a Winner of the 2025 Top Workplaces USA AwardApril 1: Credo Unveils the Lark Family - Setting a New Benchmark for Low-Power 800G Optical DSPsIf their innovation cadence maintains like this, I'm sure their big customer wins will keep growing. If you are really into the AI revolution like I am, watch this video from a Credo engineer that explains the chasm they just jumped last OCP Global Summit 2024 Innovation Village Walk-ThruSheraz Mian and Zacks Top 10 PicksZacks Director of Research Sheraz Mian made CRDO one of his Top 10 Picks for this year. While the stock is off to a rough start for Q1, his description of their business was exceptional so I want to share it for your own due aims to break bandwidth barriers in the data infrastructure market. It provides secure, high-speed connectivity solutions that deliver improved power efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure Credo's SerDes and DSP chips optimize data transfer by enabling high-speed, error-free communication within data centers, while its HiWire Active Electrical Cables (AECs) provide efficient, high-bandwidth connections between servers to support AI workloads and large-scale data important trends are driving the data infrastructure market, such as cloud workloads, streaming video, 5G wireless deployment, the expansion of Internet of Things (IoT), and, most notably, the growing adoption of artificial intelligence. These trends have all created an explosion of data that has stressed existing infrastructure and forced a major shift.(end of Sheraz Mian observations)The rapid adoption of AI and the need for efficient data center connectivity are driving increased demand for Credo's products among top-tier builders of the AI is expanding its customer base to include all the major technology firms -- from Apple to Tesla -- and multiple large enterprises in energy and education in the line on CRDO: If Sheraz hadn't put Credo on my radar, I might not have studied it enough. Now that I know better, I think its a buy in the $40s. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
