Credo Technology Gains 10.8% as AI Networking Peers Advance

what happened

Shares of Credo Technology Group rose 10.8% to $136.71 by 11:10 a.m. ET on Wednesday, November 11, during regular trading. Other suppliers of AI networking hardware moved higher too, as buyers turned to the group after CoreWeave lifted its outlook. According to gurufocus.com, Sandisk, Lumentum and Coherent were also among the early leaders.

Credo posted fiscal first-quarter revenue of $479.0 million, up 114.7% from a year earlier and 9.6% from the prior quarter. Its non-GAAP gross margin reached 68.0%, and non-GAAP earnings per share came to $1.20. For the quarter ending October 31, the company expects revenue between $525 million and $535 million, with a non-GAAP gross margin of 67% to 69%. The midpoint of that range implies growth of roughly 11% from the previous quarter. CoreWeave's $132.5 billion backlog, in the view of the outlet, points to continued cluster construction and therefore steady demand for cabling products.

GuruFocus gives Credo a GF Score of 77 out of 100 and says the shares trade 52.6% below its GF Value of $288.26, while cautioning that the stock may be a value trap. The October-quarter report is the next checkpoint.

why it matters

Credo supplies connectivity products for AI infrastructure, so its share price often tracks how quickly data centers are being built. The gap between the stock and GuruFocus's value estimate reflects one data provider's model, not a guaranteed re-rating. The October-quarter report will show whether revenue matches the company's outlook.

market impact

AI networking stocks: Credo's rally lifts the group after CoreWeave's raised outlook

• ▲Credo Technology shares pressure up — strong revenue growth and AI infrastructure demand are supporting the stock

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