10 Stocks Hurting From DeepSeek AI News That Could Turn Into Multibaggers

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

Credo Technology Group Holding Ltd is a provider of high-speed semiconductor solutions for electrical and optical ethernet applications. The company produces low-power line card PHY, SerDEes IP, HiWire active electrical cables, and other products. The stock is getting hammered today and is down 17%.

Credo can be considered an undervalued stock even at these inflated levels. The company’s expected EPS growth should be further bolstered by improving margins down the line. Moreover, its TAM is likely to be as high as $1 trillion in 6 years time. This stock shouldn’t be ignored just because it is expensive, trading at 165 times forward earnings. There is a good reason the market is giving it that premium.

Investors shouldn’t be in a hurry to build a massive position in the stock though. It has run up 270% in a year so the current struggles on the back of DeepSeek AI developments could help bring the valuations to more reasonable levels.