BN · rank #7 · 2026-07-23
CRDO
NASDAQ · $42.57B (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. | +49.8% |
| Forward net margin Consensus forward net margin. | +35.0% |
| Net margin TTM Trailing twelve month net margin. | +35.4% |
| Margin expansion Forward minus trailing net margin (percentage points). | -0.4% |
| 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. | +22.3% |
| Last EPS surprise Most recent reported EPS versus consensus. | +13% |
| Market cap (USD) | $42.57B |
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
CRDO designs high-speed optical DSP and interconnect chips for hyperscale cloud and AI data centers, with fiscal 2026 revenue around $1.3B and very high gross and operating margins.
Rationale
The signal fits a bottleneck-solver thesis because Credo is selling bandwidth/power relief for AI infrastructure bottlenecks, while forward growth near 50%, strong margins, low leverage, and repeated earnings beats suggest the market may still be underestimating scale.
Material risks
- 1Revenue is concentrated in a small number of hyperscale customers, so a timing shift, in-house substitution, or loss of a major socket could quickly break the growth thesis.
- 2The company has limited long-duration revenue visibility, and rapid AI interconnect architecture changes could commoditize discrete optical DSPs or let larger vendors displace Credo’s niche.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.