Investing.com — Credo Technology Group Holding Ltd (NASDAQ:) on Monday posted a 64% surge in second-quarter revenue, driven by robust demand for its connectivity solutions fueled by increasing AI deployments. The company also narrowed its quarterly loss
Credo’s shares soared more than 33% in premarket trading Tuesday.
The cable maker posted revenue of $72 million for the quarter ended Nov. 2, a substantial year-over-year increase. Its GAAP net loss was trimmed to $0.03 per share, compared to a loss of $0.04 per share in the same period a year earlier.
Credo is projecting third-quarter revenue between $115 million and $125 million, with GAAP gross margin expected to range from 60.6% to 62.6%. The company anticipates operating expenses of $58.6 million to $60.6 million on a GAAP basis.
Mizuho (NYSE:) analysts reiterated an Outperform rating on Credo stock following the report and raised the price target to $70 from $49, highlighting an “AEC inflection with roadmap pointing to stronger” estimates for the calendar year 2025.
“CRDO is significantly expanding AEC capacity into C25E, adding new production in Malaysia, but we believe it could further expand its supply chain and AEC production capacity by 50-100% y/y into C25E as demand remains strong with 100G/200G per lane AI server ramps, which position AEC well with much better power performance versus current optical DACs,” analysts wrote.
Pratyush Thakur contributed to this report.
Source link
