10 Stocks Defy Market Optimism as Investor Caution Lingers

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

Credo Technology fell by 13.97 percent on Wednesday to close at $46.73 apiece as investors sold off following the release of its earnings performance for the third quarter of fiscal year 2025.

While CRDO posted impressive earnings performance during the latest quarter, investors have already factored in higher income prior to the release given its growth in AI infrastructure and strong customer base, with Amazon, Tesla, and Microsoft to support its future potential.

In the third quarter of fiscal year 2025, CRDO said net income soared by 7,250 percent to $29.4 million from $428,000 in the same period a year earlier, while revenues increased by 154 percent to $135 million from $53.1 million year-on-year.

In the first nine months of the year alone, the company swung to a net income of $15.6 million from a net loss of $17.89 million year-on-year. Revenues also doubled to $266.7 million from $132 million.

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

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