Credo's AI Comeback Is Just Getting Started
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James FoordInvesting Group LeaderFollow5ShareSavePlay(6min)Comment(1)Follow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryCredo Technology Group Holding Ltd stock rebounded to all-time highs after a sharp selloff, driven by renewed confidence in copper and optics connectivity.CRDO's acquisition of DustPhotonics transforms it into a full-stack platform, eliminating the bear case and expanding exposure to fast-growing optics markets.Despite a 400% rally, CRDO's forward PEG and projected triple-digit earnings growth suggest further upside, especially as AEC and optics markets accelerate.Key risks include integration challenges post-acquisition, rapid industry innovation, and reliance on a concentrated hyperscale customer base.This idea was discussed in more depth with members of my private investing community, The Pragmatic Investor. Learn More » bo feng/iStock via Getty Images Thesis Summary Just a few months ago, Credo Technology Group Holding Ltd (CRDO) looked like a casualty of the AI cycle. After rallying 400% in 1 year, Credo stock lost around 50% of its value, following the narrativeThis article was written byJames Foord27.98K FollowersFollowJames Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.
The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRDO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.