BN · rank #6 · 2026-10-19
CRDO
NASDAQ · $31.90B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.76 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +54.8% |
| Forward net margin Consensus forward net margin. | +33.6% |
| Net margin TTM Trailing twelve month net margin. | +33.8% |
| Margin expansion Forward minus trailing net margin (percentage points). | -0.2% |
| 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. | +64.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | -16% |
| Market cap (USD) | $31.90B |
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 power-efficient high-speed copper and optical interconnect products—AECs, ZeroFlap optical transceivers, SerDes IP, and retimers—targeting hyperscale AI data-center buildouts where bandwidth and link reliability are acute bottlenecks.
Rationale
The bottleneck-solver thesis is directly reinforced: AECs drove >90% of YoY revenue growth, fiscal Q1 revenue surged 115% YoY to $479M, management guided >85% full-year growth, and proprietary SerDes/DSP technology with a process-node cost advantage constitutes a credible, defensible moat at the AI interconnect layer.
Material risks
- 1Two contracting customers represent 71% of Q1 revenue, and the filing explicitly flags the risk of customers shifting capability in-house—a direct bottleneck-solver disqualifier if either hyperscaler vertically integrates interconnect.
- 2ZeroFlap and AEC products face tech-path displacement risk from commodity optical alternatives and competing DSP vendors, with no disclosed sole-source status or quantified market share to anchor durability of the moat.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.