BN · rank #6 · 2026-07-20
CRDO
NASDAQ · $37.80B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.68 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +49.3% |
| Forward net margin Consensus forward net margin. | +34.7% |
| Net margin TTM Trailing twelve month net margin. | +35.4% |
| Margin expansion Forward minus trailing net margin (percentage points). | -0.7% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | — |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.06× |
| Analyst upside Spread between the consensus 12m target and the current price. | +36.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | +13% |
| Market cap (USD) | $37.80B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Credo Technology (CRDO) designs high-speed optical DSP and interconnect chips for hyperscale cloud and AI data centers, with FY26 revenue around $1.3B and very high gross and operating margins.
Rationale
The stock screens well because AI interconnect demand is booming, Credo is posting ~49% forward revenue growth, strong FCF, low leverage, and repeated earnings beats while selling products aimed directly at bandwidth and power bottlenecks.
Material risks
- 1CRDO’s revenue is concentrated in a small set of hyperscale customers, so a delay, redesign, or insourcing decision by a top account could quickly break the growth runway.
- 2Its moat is product/IP-led rather than contractual, so rapid shifts in AI networking standards or vertically integrated alternatives from large platform vendors could commoditize the DSP opportunity.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.