Credo Technology Group (CRDO) Surged on Increased Demand

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Soumya Eswaran

Wed, Apr 2, 2025, 5:29 AM 3 min read

Renaissance Investment Management, an concern absorption company, released its Q4 2024 “Small Cap Growth Strategy” capitalist letter. A transcript of the missive tin beryllium downloaded here. The Russell 2000 Growth Index generated a instrumentality of 1.7% successful the 4th quarter, bringing the yearly returns to 15.2%. The portfolio generated affirmative returns successful the 4th fourth and outperformed the Index. The outperformance was driven by banal enactment successful Information Technology and underweight presumption and banal enactment successful Health Care, portion banal enactment successful Communication Services and Consumer Discretionary detracted. For much accusation connected the fund’s champion picks successful 2024, delight cheque its apical 5 holdings.

In its 4th fourth 2024 capitalist letter, Renaissance Investment Management Small Cap Growth Strategy emphasized stocks specified arsenic Credo Technology Group Holding Ltd (NASDAQ:CRDO). Credo Technology Group Holding Ltd (NASDAQ:CRDO) offers a wide scope of assorted high-speed connectivity solutions for optical and electrical Ethernet applications. The one-month instrumentality Credo Technology Group Holding Ltd (NASDAQ:CRDO) was -10.72%, and its shares gained 85.92% of their worth implicit the past 52 weeks. On April 1, 2025, Credo Technology Group Holding Ltd (NASDAQ:CRDO) banal closed astatine $41.72 per stock with a marketplace capitalization of $7.084 billion.

Renaissance Investment Management Small Cap Growth Strategy stated the pursuing regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) successful its Q4 2024 capitalist letter:

"Credo Technology Group Holding Ltd (NASDAQ:CRDO), a supplier of connectivity solutions for information centers, was our champion performing banal successful the 4th quarter. The company’s products people the AI-server marketplace with precise precocious bandwidth connectivity rates and low-power solutions. In the astir precocious reported quarter, the institution saw accrued request from existent customers on with the ramping of a caller lawsuit that drove gross guidance importantly supra expectations. Moreover, the institution expects revenues for the adjacent fiscal twelvemonth to turn by astatine slightest 50%. We judge the marketplace stock opportunities for Credo are inactive successful the aboriginal stages, arsenic the institution continues to prosecute with ample hyperscalers and the request for AI servers and infrastructure remains robust."

Is Credo Technology Group Holding Ltd (CRDO) the Best Mid Cap AI Stock to Buy Now?

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Credo Technology Group Holding Ltd (NASDAQ:CRDO) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge money portfolios held Credo Technology Group Holding Ltd (NASDAQ:CRDO) astatine the extremity of the 4th fourth compared to 30 successful the 3rd quarter. In the fiscal 3rd 4th of 2025, Credo Technology Group Holding Ltd (NASDAQ:CRDO) generated $135 cardinal successful revenues, up 87% sequentially and up 154% year-over-year. While we admit the imaginable of Credo Technology Group Holding Ltd (NASDAQ:CRDO) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.

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