BN · rank #4 · 2026-09-07
CRDO
NASDAQ · $32.06B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.90 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +54.7% |
| 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. | +65.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | -16% |
| Market cap (USD) | $32.06B |
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 interconnects that solve AI data-center bottlenecks between chips, memory, and networking gear.
Rationale
The setup is strong for bottleneck_solvers because FY26 revenue grew ~206% to ~$1.3B, Q1 FY27 revenue came in near $479M above guidance, margins and FCF remain strong, and the DustPhotonics deal expands its AI connectivity stack.
Material risks
- 1Large AI/cloud customers could build comparable interconnect and silicon-photonics solutions in-house, which would directly weaken Credo’s bottleneck position and pricing power.
- 2Rapid commoditization or execution missteps integrating DustPhotonics could pressure margins, especially since the company has no explicit sole-source status or long-term backlog visibility.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.