BN · rank #4 · 2026-09-04
CRDO
NASDAQ · $30.86B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.89 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +54.9% |
| Forward net margin Consensus forward net margin. | +33.5% |
| Net margin TTM Trailing twelve month net margin. | +33.8% |
| Margin expansion Forward minus trailing net margin (percentage points). | -0.3% |
| 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. | 0.05× |
| Analyst upside Spread between the consensus 12m target and the current price. | +69.2% |
| Last EPS surprise Most recent reported EPS versus consensus. | -16% |
| Market cap (USD) | $30.86B |
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) sells high-speed electrical and optical connectivity chips and modules that remove bandwidth and power bottlenecks in AI and hyperscale data-center systems.
Rationale
The quant signal fits a bottleneck-solver: forward revenue growth is ~55%, forward net margin is still strong at ~34%, leverage is negligible, analyst upside is high, and recent AI design wins plus DustPhotonics expand the connectivity moat.
Material risks
- 1Large AI/cloud customers could internalize optical/electrical interconnect designs or switch to rival silicon-photonics solutions, which would directly weaken Credo’s bottleneck position and margin power.
- 2Q1 FY27 showed higher R&D-driven opex and the stock already sold off on margin/valuation concerns, so any integration misstep or slower-than-expected margin expansion could compress the multiple.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.