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Credo Technology Group Stock Hits All-Time High on Soaring AI Products Demand
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Main points
- Credo Technology Group Holding beat second-quarter profit and sales expectations as the artificial intelligence boom drove demand for its data center connectivity solutions.
- The company also expects better-than-expected revenue for the current quarter.
- Credo shares hit a record high on Tuesday.
Shares of Credo Technology Group Holding (CRDO) soared 40% to a record high on Tuesday, a day after the provider of high-speed connectivity solutions for data centers posted better-than-expected results and provided guidance on supporting strong demand for its products. Artificial Intelligence (AI).
The company reports adjusted second quarter fiscal 2025 Earnings per share (EPS) 0.07 US dollars, and revenue increased 64% year-over-year to US$72 million. Both beat analysts’ expectations polled by Visible Alpha.
Product sales jumped 88% to $64.4 million, and product engineering services sales jumped 90% to $4.6 million. However, IP licensing revenue fell 60% to just under $3 million.
CEO says Credo is seeing ‘greater demand than initially anticipated’
Chief Executive Officer (CEO) Bill Brennan explained that over the past few quarters, “we expected an inflection point in our revenue in the second half of fiscal 2025. I’m pleased to report that this inflection point has been reached.” Brennan added that in the deployment of artificial intelligence and Driven by deepening customer relationships, Credo is experiencing greater demand than initially anticipated.
The company expects revenue in the range of $115 million to $125 million for the quarter, above expectations.
Credo Technology Group Holding shares soared nearly 250% in 2024.
trading view
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