Credo Technology (CRDO, Financial) is riding the AI wave—and investors are loving it. The company's stock soared over 34% in premarket trading, hitting $63.98, after it crushed second-quarter expectations. Revenue skyrocketed 64% to $72 million, beating estimates of $66.8 million, while adjusted earnings per share landed at $0.07, outpacing predictions of $0.05. CEO Bill Brennan didn't hold back, calling this the “turning point” they've been anticipating. With Microsoft (MSFT, Financial), Amazon (AMZN, Financial), and other AI heavyweights fueling the demand, Credo's growth engine is firing on all cylinders.
And the momentum isn't slowing. Credo's forecast for next quarter is a revenue range of $115 million to $125 million—blowing past Wall Street's $104.6 million projection. The company is also dialing up its competitive edge, with gross margins expected to hold strong between 60.6% and 62.6%. Analysts are bullish, too. Mizuho Securities just raised its price target to $70, calling Credo the ultimate “AI-driven tailwind” play. Their standout Active Electrical Cable (AEC) tech is helping them outpace the competition, especially as demand for 100G/200G AI server ramps heats up.
For investors, Credo isn't just a stock—it's a front-row seat to the AI revolution. With its cutting-edge solutions, growing customer base, and strategic expansions, Credo is proving it has the chops to lead in this high-stakes race. Whether it's capitalizing on AI-powered data centers or doubling down on innovation, Credo is positioning itself as a cornerstone of tomorrow's tech ecosystem.
