10 Unstoppable Stocks to Buy in 2025

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

Market Cap as of 27^th January: $9.84 billion

Return Over Past 6 Months: ~103.1%

Average Upside Potential: ~34.8%

Number of Hedge Fund Holders: 30

Credo Technology Group Holding Ltd (NASDAQ:CRDO) offers various high-speed connectivity solutions for optical and electrical Ethernet applications. Mizuho analyst Vijay Rakesh upped the price objective on the company’s shares to $85 from $70, keeping an “Outperform” rating as part of the 2025 semiconductors and automotive technologies outlook. The analyst remains optimistic for the PHLX Semiconductor Sector in 2025. Furthermore, the firm anticipates continued strength in AI, custom silicon, and connectivity.

The increased adoption of AI clusters has been a key driver of Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s recent success. Its solutions focus on enabling power-efficient AI clusters, a key factor as data centers plan to optimize energy consumption while scaling AI capabilities. The broader AI infrastructure market continues to witness significant growth, thanks to the increased adoption of AI technologies throughout industries. Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s focus on power-efficient solutions for AI clusters remains in line with the broad-based trends, with data centers seeking to balance performance with energy consumption.

As AI workloads grow in complexity and scale, there are expectations of increased demand for high-speed and efficient connectivity solutions. TimesSquare Capital Management, an equity investment management company, released a 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.”