10 Best Mid Cap AI Stocks to Buy Now

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

Market Cap as of March 27: $7.1 billion

Number of Hedge Fund Holders: 43

Credo Technology Group Holding Ltd (NASDAQ:CRDO) plays a critical role in the AI infrastructure ecosystem. The company’s high-speed, low-latency connectivity solutions remain critical for helping the data transfer needs of AI workloads in data centers, IoT devices, as well as AI-powered industrial applications. The company remains well-placed to capture a significant share of the dynamic AI infrastructure market. Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s AEC products continue to gain traction in AI cluster deployments, providing power-efficient solutions that remain important for large-scale AI operations. With the acceleration of AI adoption throughout various industries, the demand for high-performance, energy-efficient connectivity solutions is projected to increase.

With more companies making investments in AI infrastructure, Credo Technology Group Holding Ltd (NASDAQ:CRDO) possesses the potential to improve the customer base and enhance the market share. Its strong emphasis on innovation and its capability to offer products meeting the critical needs of AI applications can help it develop a strong and defensible position. The broader AI industry’s growth is expected to fuel strong demand for Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s high-speed connectivity solutions, mainly as AI applications become more data-intensive, demand quicker communication between AI hardware systems, and need low-latency processing.

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.”