10 Most Promising New Technology Stocks According to Hedge Funds

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

Number of Hedge Funds: 30

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a company based in the Cayman Islands that specializes in high-speed connectivity solutions for data infrastructure. In simple terms, it develops technologies that help improve how data is transmitted over wired connections, making it faster and more efficient. The company focuses on breaking bandwidth barriers, which means it creates products that allow more data to be sent at higher speeds without losing quality.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) recently held its earnings call for the first quarter of fiscal year 2025, revealing significant financial performance and future growth prospects. The company reported a total revenue of $59.7 million, which represents a 70% increase compared to the same quarter last year. This includes a record $57.3 million in product revenues, up 30% from the previous quarter, driven largely by the growing demand for AI infrastructure solutions.

Management anticipates continued growth, particularly as it targets both leading hyperscalers and emerging data center operators who are increasing their infrastructure investments in AI technologies. The company expects to generate significant revenue from these new customer relationships and is preparing to enter the 64 gig PAM4 PCIe Gen 6 market later this year.

TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) in its Q2 2024 investor letter:

“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.”