Latest news with #CredoTechnology
Yahoo
01-08-2025
- Business
- Yahoo
This Data Center Stock Is Up 330% in the Past Year
Credo Technology (CRDO) hit a new 52-week high on July 31. The stock shows strong technical momentum and has a 100% 'Buy' signal via Barchart. Shares are up nearly 330% over the past year. Despite positive momentum, CRDO is highly volatile and speculative, requiring disciplined risk management and stop-loss strategies. Today's Featured Stock Valued at $19.91 billion, Credo Technology (CRDO) is a provider of high-performance serial connectivity solutions for the hyperscale data center, 5G carrier, enterprise networking, artificial intelligence, and high-performance computing markets. What I'm Watching: I found today's Chart of the Day by using Barchart's powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker 'buy' signal. I then used Barchart's Flipcharts feature to review the charts for consistent price appreciation. CRDO checks those boxes. Since the Trend Seeker signaled a buy on July 23, the stock has gained 13.35%. More News from Barchart With UnitedHealth Under DOJ Investigation, Should You Buy, Sell, or Hold UNH Stock Now? Trump Won't Take Away Tesla's Subsidies. Does That Make TSLA Stock a Safe Buy Here? Can AMD Stock Hit $210 in 2025? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! CRDO Price vs. Daily Moving Averages: Barchart Technical Indicators for Credo Technology: Editor's Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the website when you read this report. These technical indicators form the Barchart Opinion on a particular stock. Credo Technology shares hit a new all-time high on July 31, touching $118.95 in intraday trading. CRDO has a 100% technical 'Buy' signal. The stock recently traded at $111.55, above its 50-day moving average of $86.31. Credo Technology has a Weighted Alpha of +288.03. The stock has gained 329.70% over the past year. CRDO has its Trend Seeker 'Buy' signal intact. Credo Technology is trading above its 20, 50 and 100-day moving averages. The stock made 13 new highs and gained 20.48% in the last month. Relative Strength Index is at 60.87%. The technical support level is $108.64. Don't Forget the Fundamentals: $19.1 billion market capitalization. Trailing price-earnings ratio of 429.67x. Revenue is projected to grow 86.32% this year and another 23.15% next year. Earnings are estimated to increase 120.63% this year and an additional 26.65% next year. Analyst and Investor Sentiment on Credo Technology: I don't buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it's hard to make money swimming against the tide. It looks like Wall Street analysts are bullish, but some major advisory sites are split. The Wall Street analysts tracked by Barchart issued nine 'Strong Buy,' and one 'Moderate Buy' opinion on the stock. Value Line gives the company its above-average rating. CFRA's Market Scope rates the stock a 'Hold.' Morningstar thinks the stock is 59% overvalued. 30,160 investors monitor the stock on Seeking Alpha, which rates the stock a 'Hold.' The Bottom Line: Credo Technology currently has momentum and is hitting new highs. It has positive sentiment from Wall Street, plus analysts project double-digit increases in revenue and earnings. I caution that CRDO is volatile and speculative — use strict risk management and stop-loss strategies. Today's Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here. Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance. On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Globe and Mail
21-07-2025
- Business
- Globe and Mail
CRDO Eyes Growth: Will Retimer Business Fuel its Revenue Engine?
The PCIe interface continues to play a vital role in AI clusters, enabling high-speed connections between GPUs, CPUs and endpoints such as Smart NICs and NVMe storage. As AI workloads become increasingly complex and large-scale, the need for faster data transmission and more efficient hardware interconnects has grown significantly. Credo Technology Group Holding Ltd. 's ( CRDO ) sophisticated retimer solutions address these demands by minimizing data transfer bottlenecks and improving overall system performance and connectivity. Credo's retimers and PCIe OSFP-XD AECs improve PCIe cabling by overcoming limits of PCB and passive cables in PCIe 6.0/7.0 systems. By placing retimers on the PCB or in the cable, they reduce insertion loss and extend reach up to seven meters for in-rack and rack-to-rack use. Strong Retimer sales are driven by its 50G and 100G Ethernet solutions, which offer key features like MACsec encryption, gearboxing and software support. CRDO's customers now include top AI server makers and switch vendors, highlighting strong demand in AI systems. For fiscal 2026, it anticipates robust growth as more customers transition to 100G per lane solutions and seek system-level and software expertise for complex AI architectures. The new PCIe Gen6 Retimer family, led by the 2CAN Retimer, passed PCIe compliance testing and demonstrated strong performance. Live demos at GTC, OFC and Computex with two top ODMs confirmed its capabilities. Customer interest in PCIe Retimers is rapidly growing, with design wins anticipated in 2025 and production revenues in 2026. The company's strength lies in its advanced SerDes technology, a customer-first approach and system-level innovation that offers improved latency, reach and power efficiency. Its PILOT telemetry software also accelerates development, boosts yields and enhances system monitoring—key advantages highlighted by customers. Per a report from Verified Market Reports, the PCIe Retimer market size was valued at $1.2 billion in 2024 and is projected to achieve $2.8 billion by 2033, at a CAGR of 11.5% (2026-2033). Credo's retimer business is a clear engine of growth and innovation. In tandem with its Retimer business, the company is well-positioned to benefit from its Optical DSP and AEC offerings. CRDO expects its revenues to exceed $800 million in fiscal 2026, implying year-over-year growth of more than 85%. CRDO's Cut-Throat Competitors in the PCIe Retimer Market Astera Labs ( ALAB ) develops semiconductor-based connectivity solutions tailored for cloud and AI infrastructure. ALAB is advancing next-gen data center infrastructure with the introduction of a PCIe 6-ready reference design based on NVIDIA Blackwell-based MGX platform that leverages Scorpio Smart Fabric Switches for AI and cloud infrastructure. It has showcased the first end-to-end PCIe 6 interoperability with NVIDIA's Blackwell GPU and Micron's NVMe SSD, with both Aries 6 PCIe Smart Retimer and Scorpio-P PCIe SmartFabric Switch. It has emerged as a key player in next-generation data center connectivity, with a full-stack portfolio spanning PCIe 6.0, Ultra Accelerator Link and CXL 3.0. The company has moved its Scorpio PCB switches and Aries 6 retimers into volume production, set to ramp up in late second-quarter fiscal 2025 for AI rack-scale systems. It also launched the Aries 6 PCIe Smart Gearbox to link PCIe 5 and PCIe 6, with several hyperscalers using it for AI and compute platforms. A cutting-edge product lineup, combined with solid demand from hyperscalers, is projected to support its long-term revenue growth. San Jose, CA-based Broadcom ( AVGO ) is a premier designer, developer and global supplier of a broad range of semiconductor devices. Targeting enterprise, hyperscale data centers and service providers, its portfolio includes advanced technologies such as DSP, Ethernet, optical interconnect, PCIe, SerDes, XPU and physical layer solutions, all aimed at enhancing performance and connectivity across AI-driven infrastructure. It has launched its PCIe Gen 6 portfolio, featuring high-port switches and retimers tested for interoperability with partners like Micron and Teledyne LeCroy. AVGO's in-house SerDes technology and collaboration with ecosystem partners aim to support scalable AI clusters. CRDO Price Performance, Valuation and Estimates Shares of CRDO have surged 216.6% in the past year compared with the Electronics-Semiconductors industry's growth of 27.9%. In terms of the forward 12-month price/sales ratio, CRDO is trading at 18.86, higher than the Electronic-Semiconductors sector's multiple of 8.78. The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has seen a significant uptick over the past 60 days. CRDO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. One Big Gain, Every Trading Day To help you take full advantage of this market, you're invited to access every stock recommendation in all our private portfolios - for just $1. Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That's about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%. Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles. See Stocks Now >> 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 Broadcom Inc. (AVGO): Free Stock Analysis Report Astera Labs, Inc. (ALAB): Free Stock Analysis Report
Yahoo
17-07-2025
- Business
- Yahoo
Buy 3 AI Infrastructure Stocks Backed by Past Month's Solid Momentum
The artificial intelligence (AI) infrastructure space recently gathered steam, with the DeepSeek-related fears turning out to be overblown. Moreover, chances of a trade deal between the United States and its major trading partners, the Fed's indication of two rate cuts of 25 basis points each this year and the evaporation of recession worries in the U.S. economy have boosted market participants confidence. At this stage, we have narrowed our search to three AI infrastructure stocks that have that have surged in the past month with more than 10% returns. Each of these stocks currently sports a Zacks Rank #1 (Strong Buy), indicating solid upside momentum in the near term. You can see the complete list of today's Zacks #1 Rank stocks here. These stocks are: Credo Technology Group Holding Ltd. CRDO, Jabil Inc. JBL and Lumentum Holdings Inc. LITE. AI Frenzy Flourishing The AI space remains rock solid supported by an extremely bullish demand scenario. Four of the 'magnificent 7' stocks have decided to invest a massive $325 billion in 2025 as capital expenditure for AI-infrastructure development. This marks a significant 46% year-over-year increase in capital spending on the AI ecosystem. This huge spending on AI infrastructure will dramatically change the world over the next five years in fields such as hyperscale automation, robotics, healthcare, energy, materials, financials and cybersecurity. Research firm Oppenheimer estimated that the total addressable global sovereign AI market could be a massive $1.5 trillion. The chart below shows the price performance of our five picks in the past month. Image Source: Zacks Investment Research Credo Technology Group Holding Ltd. Credo Technology is a provider of high-performance serial connectivity solutions for the hyperscale datacenter, 5G carrier, enterprise networking, artificial intelligence and high-performance computing markets. CRDO's main business is its Active Electrical Cables (AEC) product line. AEC is gaining traction owing to 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. With the demonstration of PCIe Gen6 AECs and increasing hyperscaler interest, this product line is expected to remain a growth engine. Strength in the optical business, particularly Optical Digital Signal Processors (DSPs), is another key catalyst. CRDO expects an expansion of customer diversity across lane rates, port speeds and applications to accelerate revenue growth going forward. CRDO announced that it achieved a key 800-gig transceiver DSP design win and unveiled ultra-low-power 100 gig-per-lane optical DSPs built on 5-nanometer technology. CRDO expects its 3-nanometer 200 gig-per-lane optical DSP to boost the industry's transition to 200-gig lane speeds. Supplementing these businesses is CRDO's PCIe retimers and Ethernet retimers business. This particular product line continues to witness customer interest, especially for scale-out networks in AI servers. CRDO highlighted that the retimer business delivered 'robust' performance driven by 50 gig and 100 gig per lane Ethernet solutions. This growing demand underscores the increasing importance of high-performance solutions in the rapidly expanding AI server market. Shift to 100 gig per lane solutions and higher demand for system-level expertise and software capabilities for dealing with AI-optimized architectures bode well for CRDO's retimer business. Credo Technology has an expected revenue and earnings growth rate of 85.8% and more than 100%, respectively, for the current year (ending April 2026). The Zacks Consensus Estimate for current-year earnings has improved 37% in the last 60 days. Jabil Inc. Jabil has been benefiting immensely from healthy momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce business verticals. Its focus on end-market and product diversification is a key catalyst. Jabil's target that 'no product or product family should be greater than 5% operating income or cash flows in any fiscal year' is commendable. JBL's high free cash flow indicates efficient financial management practices, optimum utilization of assets, and improved operational efficiency. Massive application of generative AI is set to drastically increase the efficiency of JBL's automated optical inspection machines for the automation industry. A large-scale portfolio of business sectors offers JBL a high degree of resiliency during times of macroeconomic and geopolitical disruption. Jabil has an expected revenue and earnings growth rate of 5.6% and 17.8%, respectively, for next year (ending August 2026). The Zacks Consensus Estimate for next-year earnings has improved 8.4% over the last 30 days. Lumentum Holdings Inc. Lumentum Holdings designs and manufactures optical and photonic technologies for high-speed telecommunications, data centers, and advanced manufacturing. LITE provides components, such as transceivers and lasers for fiber-optic networks, supporting the rapid growth of artificial intelligence, cloud computing, 5G connectivity, and beyond. LITE's industrial lasers are used in precision manufacturing, such as cutting semiconductors and solar cells. LITE also develops 3D sensing laser diodes for applications like facial recognition in smartphones and autonomous vehicle sensors. Shares of Lumentum have gathered momentum in the past three months boosted by growing AI demand. LITE is developing and providing photonic solutions for AI applications, particularly for data centers. LITE's major AI-enabled offerings are high-speed transceivers, optical circuit switches, and lasers that enable faster, more efficient, and scalable AI infrastructure. Moreover, LITE has a strong collaboration with NVIDIA Corp. NVDA in developing NVDA's silicon photonics ecosystem, especially for deploying the latter's Spectrum-X Photonics networking switches. Lumentum Holdings has an expected revenue and earnings growth rate of 32,8% and more than 100%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : 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
Yahoo
15-07-2025
- Business
- Yahoo
Credo Technology Group (CRDO): A Bull Case Theory
We came across a bullish thesis on Credo Technology Group on Nikhs's Substack. As of 30ᵗʰ June, Credo Technology Group's share was trading at $93.49. CRDO's trailing and forward P/E were 319.28 and 120.25 respectively according to Yahoo Finance. A diverse team of data scientists working collaboratively on sophisticated software applications. Credo Technology Group (CRDO) is transitioning from a connectivity 'plumber' to an intelligent platform provider, similar to Cisco's transformation in the 1990s. The company's 'Pilot' software platform provides predictive integrity, link optimization, and telemetry, making its hardware more intelligent and valuable. This shift is driven by the increasing demand for efficient and reliable AI infrastructure, as AI clusters require flawless, low-latency communication between thousands of GPUs. The market currently values Credo as a high-growth semiconductor provider, but the company's platform transformation has the potential to lead to a significant re-rating. The 'Pilot' platform creates operational lock-in, making it difficult for customers to replace Credo's integrated solution. The company's financial ambitions, including a sustainable ~40% non-GAAP net margin target, are aggressive for a hardware vendor but plausible with a platform approach. The potential for continuous value creation and deeper customer engagement is substantial, with a bull case scenario envisioning a 4-5x return by 2028. The bull case scenario involves a market realization of Credo's platform shift, leading to a re-rating as a critical AI infrastructure platform provider, with revenue reaching $3-4 billion and net margins expanding to 50%+. Whereas the bear case scenario involves the platform failing to gain traction, with revenue growth slowing and margins compressing. Investors who recognize the emerging software and intelligence layer may capture significant upside as this transformation unfolds. Investors who recognize the deeper potential—seeing Credo as a company developing the 'iOS for AI data fabrics'—and understand the emerging software and intelligence layer may be best positioned to benefit from the substantial upside as this transformation progresses. Previously we covered a bullish thesis on Credo Technology Group by Deep Value Returns in May 2025, which highlighted the company's strong recovery from earlier volatility and argued for a patient, long-term investment strategy despite high valuation multiples. The company's stock price has appreciated approximately 47% since our coverage. This is because investors began pricing in its AI-driven growth narrative. Nikhs shares an identical view but emphasizes Credo's transformation into an intelligent infrastructure platform through its Pilot software. CRDO isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of CRDO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
14-07-2025
- Business
- Globe and Mail
Astera Labs Drops 33% Year to Date: Buy, Sell or Hold the Stock?
Astera Labs ALAB shares have dropped 32.8% year to date (YTD), outperforming the Zacks Internet Software industry's return of 14.1% and the Zacks Computer and Technology sector's growth of 7.5%. Shares of this semiconductor company have underperformed close peers, including Broadcom AVGO and Credo Technology CRDO, which appreciated 17.5% and 43.7%, respectively, YTD. Stiff competition, along with uncertainty over tariffs, has negatively impacted ALAB's YTD performance. Astera Labs is facing stiff competition from both Broadcom and Credo Technology. Broadcom's launch of PCIe Gen 6 portfolio, featuring high-port switches and retimers tested for interoperability with partners like Micron and Teledyne LeCroy, is a noteworthy development. Credo Technology continues to gain share in the optical segment, with a major DSP win for an 800G transceiver and the launch of ultra-low-power optical DSPs based on 5nm technology. It also reported a healthy pipeline of PCIe Gen6 AECs and retimers, with further customer wins expected to support fiscal 2026 growth. However, Astera Labs' expanding portfolio is expected to help the stock recover in the remainder of 2025. ALAB Stock's Performance Strong Portfolio to Boost ALAB's Prospects Astera Labs has emerged as a key player in next-gen data center connectivity with a full-stack portfolio spanning PCIe 6.0, Ultra Accelerator (UA) Link, and CXL 3.0. Apart from shipping PCIe Gen 6 Scorpio P-Series Smart Fabric Switches, Aries 6 PCIe/CXL Smart Retimers, and Aries 6 PCIe Smart Cable Modules, the company added Aries 6 PCIe Smart Gearboxes. Astera Labs is benefiting from strong demand for Aries and Taurus product families, both expected to grow on a sequential basis in the second quarter of 2025. The addition of PCIe 6 over Optics Technology is noteworthy. Diversification across both GPU and custom ASIC-based systems for a variety of applications, including scale-up and scale-out connectivity, is a key catalyst for ALAB's Aries product family. Continued deployment of AI and general-purpose systems at leading hyperscaler customers is benefiting the Taurus system. Astera Labs plans to provide a broad portfolio of connectivity solutions for the entire AI rack through purpose-built silicon hardware and software to support computing platforms based on both custom ASICs and merchant GPUs is a key catalyst. The company plans to increase its research and development (R&D) investments to achieve these plans. In first-quarter 2025, R&D jumped 20% year over year to $64.6 million. Operating expense is expected to be between $73 million and $75 million in the second quarter of 2025, driven by higher R&D expenses. UA Link offers a significant growth opportunity for Astera Labs. UA Link combines the memory semantics of PCIe and the fast speed of Ethernet, but is devoid of the software complexity and performance limitations of Ethernet. ALAB expects to deliver UA Link solutions in 2026 to solve scale-up connectivity challenges for next-generation AI infrastructure. The growing proliferation of UA Link is expected to be a multibillion-dollar additional market opportunity for Astera Labs by 2029. Expanding Partner Base Bodes Well for ALAB Astera Labs is benefiting from a rich partner base. ALAB is advancing next-gen data center infrastructure with the introduction of a PCIe 6-ready reference design based on NVIDIA NVDA Blackwell-based MGX platform that leverages Scorpio Smart Fabric Switches for AI and cloud infrastructure. Scorpio-based solutions enable users to maximize GPU productivity through enhanced data center observability, telemetry, and diagnostics using ALAB's COSMOS rack-scale management software. Astera Labs has showcased the first end-to-end PCIe 6 interoperability with NVIDIA's Blackwell GPU and Micron's NVMe SSD, with both Aries 6 PCIe Smart Retimer and Scorpio-P PCIe SmartFabric Switch. Collaboration with ecosystem leaders like Wistron expands Astera Lab's reach into OEM and modular platforms. ALAB Offers Positive Q2 Guidance Astera Labs expects second-quarter 2025 revenues between $170 million and $175 million, suggesting an increase between 7% and 10% year over year. The company expects accelerated shipments of Scorpio P-Series switches and Aries 6 retimers on a customized rack-scale AI platform based on market-leading GPUs to boost top-line growth. Scorpio revenues are expected to grow sequentially in the second quarter and should account for 10% of total revenues in 2025. The Zacks Consensus Estimate for second-quarter 2025 revenues is pegged at $172.71 million, indicating 124.74% year-over-year growth. Earnings are expected between 32 cents and 33 cents per share for the second quarter. The consensus mark for earnings is pegged at 33 cents per share, unchanged over the past 30 days, indicating 153.85% year-over-year growth. The Zacks Consensus Estimate for 2025 revenues stands at $702.43 million, suggesting 77.25% growth over 2024's reported figure. The consensus mark for earnings is pegged at $1.35 per share, unchanged over the past 30 days, but indicates 60.71% year-over-year growth. ALAB Shares Trading at a Premium Astera Labs stock is trading at a premium, as suggested by the Value Score of F. In terms of the forward 12-month Price/Sales, ALAB is trading at 19.49X, higher than the sector's 6.59X, Broadcom's 18.03X but lower than Credo Technology's 19.95X. Price/Sales Ratio (F12M) Conclusion Although Astera Labs' innovative portfolio is noteworthy, its prospects suffer from tariff uncertainty and stiff competition, along with a stretched valuation. Astera Labs currently carries a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. 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 NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO): Free Stock Analysis Report Astera Labs, Inc. (ALAB): Free Stock Analysis Report
