BN · rank #4 · 2026-10-26
CRDO
NASDAQ · $27.68B (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. | +55.0% |
| 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. | +92.8% |
| Last EPS surprise Most recent reported EPS versus consensus. | -16% |
| Market cap (USD) | $27.68B |
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 provides high-speed connectivity products—AECs, retimers, optical DSPs, silicon-photonics, and optical transceivers—for AI and data-center bottlenecks across hyperscaler and OEM networks.
Rationale
The quant signal fits a bottleneck-solver setup because Credo is growing revenue 55%+ forward, compounding a 85%+ FY27 outlook, and monetizing a specialized mixed-signal portfolio directly tied to AI interconnect constraints.
Material risks
- 1Four customers drove about 84% of the latest quarter’s revenue, so any hyperscaler pause, internal build-out, or vendor swap could quickly impair the thesis.
- 2The moat is based on design wins and engineering differentiation, not exclusivity, and settled patent disputes mean TE Connectivity, Molex, Broadcom, and Marvell can still compete on AECs and connectivity.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.