Oct. 23 at 2:05 PM
$CRDO I upgrade Credo Technology Group to Strong Buy, driven by explosive growth, new hyperscaler clients, and a pivotal Arm partnership.
CRDO's Q1 FY2026 revenue soared 274% y/y, with non-GAAP net margins nearing 40% and management guiding for 85% y/y revenue growth.
The addressable market for CRDO's AI interconnect solutions is expanding rapidly, now estimated at
$5-10 billion, fueled by AI infrastructure demand.
Despite a sharp rally, CRDO trades at a discount to its growth, with a PEG of 1.04x and improving valuation grades, supporting a bullish outlook.