10 Best Semiconductor Stocks With The Highest Upside Potential

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

Upside Potential: 79%

Market Capitalization: $7.94 Billion

Number of Hedge Fund Holders: 43

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is a leader in secure, high-speed connectivity solutions that address the growing data generation and bandwidth needs of the data infrastructure market. Its innovations focus on reducing system bandwidth bottlenecks while improving power efficiency, security, and reliability. Its products cater to optical and electrical Ethernet applications in markets such as 100G, 200G, 400G, 800G, and emerging 1.6T speeds.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) achieved record revenue in both Q4  of 2024 ($60.8 million) and for the full fiscal year of 2024 ($193 million), driven largely by AI deployments. The company’s solutions, including Active Electrical Cables (AECs), Optical DSPs, Line Card PHYs, and SerDes IP, were key in supporting AI workloads across data centers, according to the company. 75% of Q4 revenue came from AI workloads, and the company expects a significant increase in AI-driven revenue growth by fiscal 2025. The company said in its Q4 2024 earnings call that the increasing need for higher-density connections in AI networks is likely to drive further growth for the company’s AEC solutions. The company is also working on next-generation platforms that will allow for even more AEC connections per GPU.

While we acknowledge the growth potential of CRDO, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRDO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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