From Nasdaq: 2025-06-06 10:05:00

Shares of Credo Technology (NASDAQ: CRDO) surged 19.8% this week following a strong fiscal fourth-quarter earnings report, with revenue growing 179.7% to $170 million and $0.35 in non-GAAP earnings per share, beating expectations. The company also noted new hyperscaler customers diversifying away from Amazon, driving future growth.

Credo is a leading provider of data center connectivity solutions, with a novel active electrical cable technology gaining traction in AI data centers. Amazon Web Services accounted for 61% of revenue last quarter, but Microsoft and xAI are becoming significant customers, with more hyperscalers expected to come onboard.

Despite impressive growth and guidance for further expansion, Credo’s stock is trading at a high valuation of roughly 50 times forward earnings, signaling potential risk for investors. While the company remains an AI darling with strong growth prospects, the question looms about the sustainability of this growth trajectory in the long run.

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Read more at Nasdaq: Why Credo Technology Rocketed Higher This Week