CRDO Stock Recent News

Credo Technology Group Holding Ltd CRDO will release its fourth-quarter earnings results after the closing bell on Monday, June 2.

Credo Technology (NASDAQ:CRDO), a company specializing in electrical cable and interconnect products, is set to announce its earnings on Monday, June 2, 2025. For traders focused on events, historical data since 2022 indicates that the stock has nearly an equal probability of rising or declining following its earnings announcement.

Credo Technology Group Holding is a hot AI stock with strong momentum, but its $11B valuation is excessive for its current revenue and lack of profitability. DCF analysis, even with aggressive growth and lower discount rates, suggests intrinsic value is far below the current share price. Risks include sky-high expectations for the upcoming earnings, limited earnings history, and fierce competition from much larger peers.

Shares of Credo Technology have recovered from a significant decline at the start of the year, driven by strong sector momentum and a broader market rally driven by tariff relief. The share price uptrend will face a critical test next week as Credo will report fiscal Q4 2025 results and provide guidance for the next quarter and fiscal year. A beat-and-raise quarter is critical for continued gains, and so is reduced reliance on Amazon and strong guidance.

Credo Technology is well-positioned for AI infrastructure growth, benefiting from strong demand and Nvidia's positive results, but faces high customer concentration risk. Despite explosive revenue and earnings growth, Credo Technology stock's recent rally has pushed valuation too high relative to current fundamentals and risks. I'm assigning a Hold rating to CRDO shares due to elevated valuation, customer concentration, and weak free cash flow, preferring to wait for improvements or a pullback.

CRDO surges 24% in 3 months, but high valuation and customer risks may cap near-term upside ahead of Q4 earnings on June 2.

Credo's explosive AI-driven growth is impressive, but don't overlook risks—especially heavy reliance on hyperscalers like AWS; monitor capex signals closely for growth normalization impacts on investor sentiment. Margins are excellent now, but expect moderation—watch management's R&D spending guidance closely on earnings calls, as unexpected expense jumps could quickly pressure valuations. CRDO shares look appealing despite stretched multiples; position cautiously and stay sharp on strategic catalysts and competitor moves, given the volatile macro and customer concentration risks.

Credo's new PILOT enhances link reliability, detects early degradation and ensures seamless uptime for high-speed data infrastructure.

Both Credo and Broadcom are well-positioned to gain from the rapidly growing AI-driven data center market. Let's find out which semiconductor stock is a better bet.

I remain bullish on Credo Technology Group Holding Ltd, expecting another strong earnings beat and upward revisions in the upcoming Q4 FY2025 report. Credo's rapid revenue growth, customer base diversification, and leadership in AECs position it for continued outperformance, despite recent volatility. Risks include high valuation multiples and heavy reliance on AWS, but expanding relationships with other hyperscalers should mitigate concentration concerns.