BN · rank #3 · 2026-09-09
CRDO
NASDAQ · $31.53B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.92 |
|---|---|
| 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. | +67.7% |
| Last EPS surprise Most recent reported EPS versus consensus. | -16% |
| Market cap (USD) | $31.53B |
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 designs high-speed SerDes, DSPs, and AI interconnect solutions (OmniConnect Weaver, Cardinal 1.6T DSPs, silicon photonics via DustPhotonics) targeting the memory bandwidth and chip-to-chip connectivity bottlenecks in AI data center infrastructure.
Rationale
With revenue doubling YoY to $479M, a 0.92 composite bottleneck-solver score, 54.7% forward revenue growth, and active standardization leadership in Open Compute/Open CPX MSA, CRDO is structurally embedded in the AI inference memory wall problem rather than merely riding sentiment.
Material risks
- 1Hyperscale customers (likely Microsoft, Amazon, or Google) developing in-house high-bandwidth memory and chip-to-chip interconnect solutions would directly displace OmniConnect and erode Credo's sole-source positioning — the canonical disqualifier for this strategy.
- 2Rapid co-packaged optics standard fragmentation or a competing memory architecture (e.g., CXL-based or HBM4 native solutions) could commoditize Credo's proprietary OmniConnect advantage before silicon photonics integration via DustPhotonics reaches scale.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.