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Credo Technology Group Stock Hits All-Time High on Soaring AI Products Demand
Key Takeaways
Shares of Credo Technology Group Holding ( CRDO ) soared 40% to an all-time high Tuesday, a day after the provider of high-speed connectivity solutions for data centers posted better-than-expected results and guidance on strong demand for products that support artificial intelligence (AI) .
The company reported second-quarter fiscal 2025 adjusted earnings per share (EPS) of $0.07, with revenue surging 64% year-over-year to $72.0 million. Both exceeded expectations of analysts polled by Visible Alpha.
Product sales soared 88% to $64.4 million, and product engineering services sales jumped 90% to $4.6 million. However, IP licensing revenue tumbled 60% to just under $3.0 million.
CEO Says Credo Seeing 'Even Greater Demand Than Initially Projected'
Chief Executive Officer (CEO) Bill Brennan explained that over the past 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 company anticipates current-quarter revenue in a range of $115 million to $125 million, above expectation.
Credo Technology Group Holding shares have soared nearly 250% in 2024.
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