Credo Technology Group Holding Ltd. (NASDAQ:CRDO) plummeted 13.44% on Tuesday, closing at $129.75 per share due to profit-taking by investors. Despite this, Stifel reaffirmed a “buy” recommendation for CRDO at $160 per share, citing the company’s launch of its 800G HiWire ZeroFlap AECs for AI backend networks.

The HiWire ZeroFlap AECs by Credo offer improved reach and signal integrity, with zero soft link flaps for lossless backend RDMA networks in AI clusters. The 800G AECs utilize liquid cooling technology, enabling full host-to-switch connectivity in leading GPU clusters and delivering cost and power savings.

Credo’s Head of AEC Product, Ameet Suri, stated that the HiWire AECs provide a significant enhancement in GPU cluster reliability by eliminating soft link flaps, offering up to $1,000 savings per GPU and 14W power savings per link compared to legacy optics. Investors are encouraged to explore other AI stocks with higher potential returns and limited downside risks.

Read more at Yahoo Finance: Credo (CRDO) Crashes 13.4% on Profit-Taking; Investors Shun ‘Buy’ Reco