10 AI Stocks That Will Skyrocket

3. Credo Technology Group Holding Ltd (NASDAQ:CRDO)

Average Upside Potential: 50.3%

Number of Hedge Fund Holders: 43

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a critical player in the AI ecosystem as it offers advanced semiconductor solutions supporting high-performance data transfer and interconnects that are important for AI-driven applications. The broader AI infrastructure market continues to experience strong growth, courtesy of higher adoption of AI technologies throughout various industries. Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s emphasis on power-efficient solutions for AI clusters remains in line with the trend, with data centers seeking to balance performance with energy consumption.

As AI workloads grow in complexity and scale, there are expectations that the demand for high-speed, efficient connectivity solutions will increase. Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s expertise in this area can place it as a critical enabler of AI infrastructure development, potentially resulting in sustained long-term growth with the expansion of the AI market. As per Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s chief, the company is in the early stages of widespread market adoption and remains well-placed as the market leader. Notably, AI-driven demand for high-speed, power-efficient, and reliable connectivity has been accelerating.

TimesSquare Capital Management, an equity investment management company, released its Q2 2024 investor letter. Here is what the fund said:

“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that closely tie to increasing shares of corporate IT budgets. Credo Technology Group Holding Ltd (NASDAQ:CRDO), a supplier of high-speed connectivity solutions, surged ahead by 51%. The company reported inline April quarter results and management’s July quarter guidance met expectations; AI spending is a growth driver.”