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Credo Technology stock soars to all-time high of $40.38

Published 10/29/2024, 03:34 AM
CRDO
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Credo Technology Group Holding Corp (NASDAQ:CRDO) has reached an all-time high, with its stock price soaring to $40.38. This milestone underscores a period of remarkable growth for the semiconductor company, reflecting a significant surge in investor confidence. Over the past year, Credo Technology has witnessed an impressive 188.28% change in its stock value, outperforming many of its industry peers and signaling strong market approval of its business strategies and growth potential. The company's robust performance and the resulting all-time high stock price highlight its successful navigation through the competitive tech landscape.

In other recent news, Credo Technology Group Holding Ltd. reported significant developments, including robust Q1 2025 results, a new product launch, and positive ratings by various analysts. Credo's Q1 2025 revenues reached $59.7 million, with a non-GAAP gross margin of 62.9%, marking a substantial year-over-year revenue increase of 70%, primarily driven by expanding AI deployments.

The company also unveiled its 800G ZeroFlap family of HiWire Active Electrical Cables, designed to support AI backend networks with enhanced reliability and signal integrity. The cables are expected to improve cluster reliability, crucial for the operation of supercomputers with extensive GPU arrays.

Analysts from TD Cowen, Craig-Hallum, and Needham reaffirmed their Buy ratings for Credo Technology. TD Cowen set a price target of $40, Craig-Hallum raised the price target to $38, and Needham increased it to $33, indicating confidence in the company's revenue growth trajectory.

At Credo Technology's recent Annual General Meeting, shareholders approved several key proposals, including the election of three Class III directors, the compensation package for the company's named executive officers, the amended and restated employee stock purchase plan, and the ratification of Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending May 3, 2025.

These developments highlight recent advancements in Credo Technology's operations and market strategy, with potential for diversified revenue streams as evidenced by broadening engagement across its product portfolio. The company also plans to enter the 64 gig PAM4 PCIe Gen 6 market later this year, aiming to capitalize on the growing demand for higher bandwidth driven by AI applications.

InvestingPro Insights

Credo Technology's recent stock performance is further illuminated by InvestingPro data and insights. The company's market capitalization stands at an impressive $6.51 billion, reflecting its significant presence in the semiconductor industry. InvestingPro Tips highlight that Credo has demonstrated a strong return over the last year, with a remarkable 181.67% price total return over the past 12 months. This aligns closely with the 188.28% change mentioned in the article, confirming the company's exceptional stock performance.

Additionally, InvestingPro data reveals that Credo's revenue grew by 70.15% in the most recent quarter, indicating robust business expansion. This growth is complemented by the company's impressive gross profit margin of 62.47%, suggesting efficient cost management and strong pricing power in its market segment.

InvestingPro Tips also point out that analysts expect Credo to be profitable this year, which could further boost investor confidence. It's worth noting that InvestingPro offers 18 additional tips for Credo Technology, providing investors with a comprehensive analysis of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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