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Credo Technology Group Holding Ltd (CRDO) Stock

Credo Technology Group Holding Ltd Stock Details, Movements and Public Alerts

Credo Technology Group (CRDO): The Hidden Champion Powering AI Data Centers

When Bill Brennan became CEO of Credo Technology in 2014, the semiconductor industry was focused on Moore's Law—making chips faster and smaller. Brennan recognized a different bottleneck: data movement. As AI, cloud computing, and streaming video exploded, moving massive amounts of data between chips and across networks became the critical constraint. Credo's proprietary SerDes (Serializer/Deserializer) technology solves this problem, enabling data transfer speeds up to 1.6 terabits per second while reducing power consumption by 50% compared to alternatives. In fiscal 2025, Credo's revenue surged 126% to $437 million as hyperscale data centers from Microsoft, Google, and Meta raced to deploy AI infrastructure requiring Credo's high-speed connectivity chips.

52-Week Range

$193.50 - $29.09

-11.94% from high · +485.77% from low

Avg Daily Volume

5,833,883

20-day average

100-day avg: 5,355,831

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

231.42

Above market average

Forward P/E

81.30

Earnings expected to grow

Price to Book

33.13

EV/EBITDA

186.43

EPS (TTM)

$0.72

Price to Sales

48.03

Beta

2.60

More volatile than market

How is CRDO valued relative to its earnings and growth?
Credo Technology Group Holding Ltd trades at a P/E ratio of 231.42, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 81.30 is lower than the current P/E, indicating analysts expect earnings to grow over the next year.
What is CRDO's risk profile compared to the market?
With a beta of 2.60, Credo Technology Group Holding Ltd is significantly more volatile than the market. For every 10% market move, this stock tends to move 26% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 33.13 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

20.80%

Operating Margin

27.20%

EBITDA

$136.35M

Return on Equity

18.80%

Return on Assets

9.13%

Revenue Growth (YoY)

273.60%

Earnings Growth (YoY)

6150.00%

How profitable and efficient is CRDO's business model?
Credo Technology Group Holding Ltd achieves a profit margin of 20.80%, meaning it retains $20.80 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 27.20% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 18.80% and ROA at 9.13%, the company generates strong returns on invested capital.
What are CRDO's recent growth trends?
Credo Technology Group Holding Ltd's revenue grew by 273.60% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 6150.00% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SEMICONDUCTORS industry averages for proper context.

Company Size & Market

Market Cap

$28.8B

Revenue (TTM)

$600.13M

Revenue/Share (TTM)

$3.55

Shares Outstanding

173.00M

Book Value/Share

$4.52

Asset Type

Common Stock

What is CRDO's market capitalization and position?
Credo Technology Group Holding Ltd has a market capitalization of $28.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 173.00M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SEMICONDUCTORS industry, it competes with other firms in this sector.
How does CRDO's price compare to its book value?
Credo Technology Group Holding Ltd's book value per share is $4.52, while the current stock price is $170.40, resulting in a price-to-book (P/B) ratio of 37.71. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$160.93

5.56% downside potential

Analyst Recommendations

Strong Buy

3

Buy

10

Hold

1

Sell

0

Strong Sell

0

How reliable are analyst predictions for CRDO?
14 analysts cover CRDO with 93% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $160.93 implies -5.6% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on CRDO?
Current analyst recommendations:3 Strong Buy, 10 Buy, 1 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Nov 1, 2025, 02:04 AM

Technical Indicators

RSI (14-day)

53.10

Neutral

50-Day Moving Average

$151.97

12.13% above MA-50

200-Day Moving Average

$91.98

85.26% above MA-200

MACD Line

6.70

MACD Signal

6.12

MACD Histogram

0.57

Bullish

What does CRDO's RSI value tell investors?
The RSI (Relative Strength Index) for CRDO is currently 53.10, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret CRDO's MACD and moving average crossovers?
MACD analysis shows the MACD line at 6.70 above the signal line at 6.12, with histogram at 0.57. This bullish crossover suggests upward momentum is building. The 50-day MA ($151.97) is above the 200-day MA ($91.98), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Nov 10, 2025, 09:06 AM

Active Alerts

Alert Condition
Price decreases by
Threshold
3%
Created
Oct 26, 2025, 06:59 PM

Credo Technology Group (CRDO) Stock Analysis 2025: Complete Investment Guide

The artificial intelligence revolution running through data centers worldwide faces a hidden constraint: moving data fast enough between GPUs, CPUs, memory, and storage. NVIDIA's latest H100 and H200 GPUs can perform trillions of AI calculations per second, but these calculations are worthless if data can't reach the chips quickly enough. Credo Technology, led by Bill Brennan for over a decade, has positioned itself as the critical enabler solving this bottleneck. The company's SerDes chips and Active Electrical Cables (AECs) move data at record speeds while consuming half the power of competing solutions—a combination that makes Credo indispensable for hyperscale AI deployments.

Business Model & Competitive Moat

Credo generates revenue by selling high-speed connectivity chips and modules to data center equipment manufacturers, cloud providers, and telecommunications companies. The company's core products include SerDes IP (intellectual property) licensed to chip designers, Active Electrical Cables connecting servers in data centers, and Line Card ICs enabling optical networking equipment. Revenue comes primarily from chip sales and licensing fees, with growing recurring revenue from design wins in customer platforms.

Credo's competitive moat derives from technical leadership, design-in cycles, and power efficiency advantages. The company's SerDes technology achieves 1.6Tb speeds—the industry's fastest—while consuming 3-4 watts versus 6-8 watts for competing solutions. This power advantage matters enormously in data centers where electricity costs and cooling represent 40%+ of operating expenses. Once Credo's technology is designed into a customer's platform (a 12-18 month process), switching costs are prohibitive. Bill Brennan's team has built deep engineering relationships with hyperscalers, creating information advantages about upcoming infrastructure requirements and enabling Credo to design solutions proactively.

Financial Performance

Credo's financial trajectory reflects the company's position in the AI infrastructure boom:

  • •Revenue Explosion: FY2025 revenue of $437M represented 126% year-over-year growth, accelerating from 79% growth in FY2024
  • •Gross Margins: 65%+ gross margins reflecting premium pricing for differentiated technology and improving scale
  • •Operating Leverage: Approaching breakeven operationally as revenue scales faster than operating expenses, targeting profitability in FY2026
  • •Customer Concentration: Top 10 customers represent 85% of revenue, primarily hyperscalers and networking OEMs like Cisco and Arista
  • •Cash Position: $250M+ in cash and investments with minimal debt, providing runway for R&D investments in next-gen 3.2Tb technology

Growth Catalysts

  • •AI Infrastructure Buildout: Hyperscalers investing $200B+ annually in AI data centers, requiring massive connectivity upgrades from 400G to 800G and 1.6T
  • •NVIDIA Partnership: Credo's AECs shipping in NVIDIA's GPU clusters, benefiting from every incremental AI training and inference deployment
  • •800G Transition: Industry migration from 400G to 800G networking accelerating through 2026, tripling addressable market for Credo's solutions
  • •Optical DSP Expansion: New Digital Signal Processor products for coherent optical communications opening $500M+ adjacent market opportunity
  • •China Alternative: U.S. customers seeking domestic alternatives to Chinese suppliers, benefiting Credo's U.S.-based design and supply chain

Risks & Challenges

  • •Customer Concentration: Heavy reliance on hyperscaler capital expenditure cycles; slowdown in AI infrastructure spending would materially impact revenue
  • •Competition Intensifying: Broadcom, Marvell, and Nvidia developing competing SerDes solutions with larger R&D budgets
  • •Technology Transitions: Rapid evolution from 800G to 1.6T to 3.2T requires continuous innovation and capital investment to maintain leadership
  • •Profitability Pressure: Still operating at break-even; delays in reaching scale could pressure margins if price competition emerges
  • •Supply Chain Risk: Relies on TSMC and other foundries for manufacturing; capacity constraints or geopolitical issues could disrupt supply

Competitive Landscape

Credo competes with semiconductor giants Broadcom (AVGO) and Marvell Technology (MRVL), both offering SerDes IP and high-speed connectivity solutions. While these companies have larger scale and resources, Credo's focused specialization in high-speed SerDes provides technology advantages in power efficiency and performance. The company also competes with vertically integrated players like NVIDIA and Intel who develop in-house connectivity solutions but often lack Credo's neutral-supplier positioning enabling design wins across multiple platforms.

Bill Brennan's strategy focuses on 'picks and shovels' positioning—rather than competing directly with NVIDIA in AI chips, Credo enables NVIDIA's ecosystem by providing essential connectivity infrastructure. This approach has won Credo design wins across competing platforms (NVIDIA, AMD, Intel), diversifying the revenue base while riding the broader AI wave. The company's technical focus and lean structure allow faster innovation cycles than larger, bureaucratic competitors.

Who Is This Stock Suitable For?

Perfect For

  • ✓Growth investors seeking AI infrastructure exposure beyond NVIDIA and hyperscalers
  • ✓Technology enthusiasts betting on continued data center buildouts through 2027
  • ✓Long-term investors (3-5 years) comfortable with semiconductor cycles and volatility
  • ✓Portfolio diversifiers wanting specialized semiconductor exposure

Less Suitable For

  • ✗Income investors (no dividend, pre-profitability company)
  • ✗Conservative investors uncomfortable with customer concentration risk
  • ✗Value investors seeking bargain entry points (growth priced in at current levels)
  • ✗Short-term traders unable to stomach 30%+ volatility swings

Investment Thesis

Credo Technology represents a compelling way to invest in AI infrastructure without direct exposure to GPU or hyperscaler valuation risk. Bill Brennan has built a company with differentiated technology, strong customer relationships, and positioning in a massive secular growth trend. The transition from 400G to 800G to 1.6T networking creates a multi-year tailwind as every AI data center requires exponentially more high-speed connectivity. Credo's 126% revenue growth in FY2025 demonstrates execution capability and validates the bull thesis.

Near-term risks include customer concentration (hyperscalers cutting capex would hurt), competition from Broadcom/Marvell, and execution risk achieving profitability. However, the structural need for high-speed, low-power connectivity won't disappear regardless of short-term AI hype cycles. For investors seeking growth exposure to AI infrastructure with a company approaching profitability and trading at more reasonable valuations than pure-play AI stocks, Credo merits serious consideration. The stock is suitable for growth portfolios with 3-5 year horizons, accepting near-term volatility for potential 5-10x returns if the company maintains technology leadership.

Conclusion

Credo deserves a SPECULATIVE BUY rating for growth-oriented investors comfortable with volatility. The company's technology leadership, design wins, and AI tailwinds create compelling upside, though execution risk and customer concentration warrant position sizing at 2-3% of portfolio maximum. Monitor quarterly revenue growth, gross margin trends, and progress toward profitability as key metrics over the next 12 months.
Bull Case
$50 (92% upside if AI buildout continues and Credo achieves 20%+ operating margins by FY2027)
Base Case
$35 (35% upside reflecting continued strong growth moderated by increasing competition)
Bear Case
$18 (31% downside on hyperscaler capex cuts and market share losses to Broadcom)

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