Credo: Opportunity Knocks

We continue to own a house position in Credo Technology Group Holding Ltd (CRDO). We covered it about a month ago and reiterated a Buy call with the choppy action we have seen Credo: Opportunity Knocks Summary - Credo Technology Group Holding Ltd is now in a Buy zone below $200, with robust AI infrastructure demand and attractive growth-to-valuation dynamics. - CRDO delivered record Q1 revenue of $479M, up 114.7% YoY, with a strong 68% adjusted gross margin and 49.3% non-GAAP net margin. - Management guides Q2 revenue to $525M–$535M and a gross margin of 67%–69%, supporting a bullish medium-term growth trajectory. - Key CRDO risks include customer concentration, competitive pressure, and execution on advanced optical products and the DustPhotonics merger. - Some may question the margin's peaking, but the CRDO valuation reset suggests this is priced in. - Looking for more investing ideas like this one? Get them exclusively at BAD BEAT Investing. Learn More » This article was written by Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRDO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.