CRDO Stock Recent News

The recent tech sell-off hammered Credo investors, but it could have bottomed out last week. Credo's reliance on hyperscalers like AWS is a deep concern, but management's efforts to diversify revenue and projected 50% YoY growth for FY2026 offer optimism. AI infra spending isn't expected to collapse, although growth could slow. But CRDO's valuation has likely considered these risks.

SAN JOSE, Calif.--(BUSINESS WIRE)--Credo Technology Group Holding Ltd (Credo) (NASDAQ: CRDO), an innovator in providing secure, high-speed connectivity solutions that deliver improved reliability and energy efficiency, is excited to announce its participation in NVIDIA GTC 2025, taking place March 17-21 in San Jose, CA. Credo will showcase its Toucan PCI Express (PCIe) Gen6.x/CXL3.x retimers in a full rack demo, highlighting their role in enabling scalable AI infrastructure. In addition, Credo'.

CRDO, OOMA and PGR made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on March 10, 2025.

ULCC, PGR, TCBX, CRDO and ATNI have been added to the Zacks Rank #1 (Strong Buy) List on March 10, 2025.

Credo Technology reported strong Q3 earnings, beating expectations and raising Q4 revenue guidance, driven by robust AEC product shipments and expanding hyperscaler customer base. Despite 86% of Q3 revenues coming from Amazon's AWS, this concentration risk is mitigated by AWS's investment in Credo and potential diversification of suppliers. Credo remains undervalued with a forward valuation of 37x FY26 EBITDA appealing, given its entry into new markets and strong balance sheet.

CRDO's double digits correction has been well warranted, as the AI bubble burst thanks to DeepSeek, intensified tariff war, and decelerating infrastructure chip sales. The selloff has already triggered an improved upside potential as the connectivity company delivers triple digits topline growth, richer profit margins, and growing hyperscaler partnerships. CRDO's long-term data center related prospects remain extremely bright, as guided by numerous hyperscalers, NVDA, and TSM in the recent earning calls.

Shares of Credo Technology declined this week despite the company reporting strong fiscal Q3 2025 results and providing guidance for Q4 2025 that was well above the Street consensus. Negative industry sentiment and the recent correction of high-growth tech stocks are the likely culprits, and Credo's valuation is also asking for a lot of growth. Credo is delivering exceptional growth and exceeding expectations, and it is a stock worth watching.

Credo Technology's stock is severely undervalued, trading at a 0.52x adjusted PEG ratio, significantly lower than the industry average, despite strong revenue and EPS growth. The company reported a substantial revenue increase of 87% QoQ and 154% YoY in Q3, beating consensus estimates by 12.17%, and EPS by 36.53%. Credo's growth is driven by high demand for faster, energy-efficient connectivity and AI infrastructure, with promising future revenue diversification reducing customer concentration risks.

Credo Technology suffers from competitive pressures and macroeconomic uncertainties despite growing demand for AI-driven solutions.

Shares of Credo Technology (CRDO 7.74%), which makes high-speed connectivity solutions for data centers, declined 2.9% in Tuesday's after-hours trading, following the company's release of its report for the third quarter of its fiscal year 2025 (ended Feb. 1).