Credo Technology Group Stock Hits All-Time High on Soaring AI Products Demand

Key Takeaways

• Credo Technology Group Holding beat second-quarter revenue and gross sales estimates because the growth in synthetic intelligence boosted demand for its connectivity options for knowledge facilities.
• The corporate additionally predicted better-than-expected current-quarter income.
• Shares of Credo traded at an all-time excessive Tuesday.

Shares of Credo Technology Group Holding (CRDO) soared 40% to an all-time excessive Tuesday, a day after the supplier of high-speed connectivity options for knowledge facilities posted better-than-expected outcomes and steerage on robust demand for merchandise that help synthetic intelligence (AI).

The corporate reported second-quarter fiscal 2025 adjusted earnings per share (EPS) of $0.07, with income surging 64% year-over-year to $72.0 million. Each exceeded expectations of analysts polled by Seen Alpha.

Product gross sales soared 88% to $64.4 million, and product engineering providers gross sales jumped 90% to $4.6 million. Nevertheless, IP licensing income tumbled 60% to only below $3.0 million.

CEO Says Credo Seeing 'Even Better Demand Than Initially Projected'

Chief Government Officer (CEO) Invoice Brennan defined that over the previous few quarters, “we have anticipated an inflection point in our revenues during the second half of fiscal 2025. I am pleased to share that this turning point has arrived.” Brennan added that Credo is “experiencing even greater demand than initially projected, driven by AI deployments and deepening customer relationships.”

The corporate anticipates current-quarter income in a variety of $115 million to $125 million, above expectation.

Credo Technology Group Holding shares have soared practically 250% in 2024.

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