BN · rank #4 · 2026-09-10
CRDO
NASDAQ · $31.56B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.91 |
|---|---|
| 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. | +67.6% |
| Last EPS surprise Most recent reported EPS versus consensus. | -16% |
| Market cap (USD) | $31.56B |
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 SerDes, DSPs, and AI interconnect solutions targeting the memory bandwidth and chip-to-chip connectivity bottlenecks in hyperscale AI infrastructure.
Rationale
With 114.7% YoY revenue growth, a 0.91 solver composite score, and proprietary OmniConnect/Cardinal products actively standardized within Open Compute Project and Open CPX MSA, CRDO is a credible structural bottleneck-solver rather than a sentiment-driven AI proxy.
Material risks
- 1Hyperscale customers (likely Microsoft, Amazon, or similar) developing in-house high-bandwidth memory and interconnect solutions is explicitly flagged and would directly dismantle CRDO's sole-source positioning in OmniConnect and DSP offerings.
- 2Rapid AI architecture shifts — particularly broader adoption of competing co-packaged optics standards or alternative memory solutions — could commoditize CRDO's technology before DustPhotonics integration and OmniConnect Weaver achieve sufficient ecosystem lock-in.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.