14 Best New Tech Stocks To Buy Now

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

Market Capitalization as of September 13: $4.61 billion

Number of Hedge Fund Holders: 36

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is a leading provider of high-speed, mixed-signal semiconductor components that are used in data centers, communications infrastructure, and AI. It specializes in developing innovative solutions that enable high-speed data transmission and processing.

The company reported FQ1 2025 revenue of $59.71 million, with an improvement of 70.15% year-over-year. Product revenues of $57.3 million increased by 30% compared to the prior quarter, driven by rapidly expanding AI deployments.

This is a pure-play high-speed connectivity company. Its strong customer relationships position its AEC solutions as the top choice for in-rack connectivity at 50 gig per lane speeds, with significant growth expected in fiscal year 2025.

In Optical DSP, Credo aims for at least 10% of fiscal year 2025 revenue, pushed by a key design win and the Linear Receive Optics (LRO) concept targeting under 10 watts for 800 gig modules.

The Line Card PHY business benefits from demand for 400-gig and 800-gig solutions in AI applications, while the SerDes licensing and chipset sectors are expanding, offering solutions up to 224 gig speeds across various process geometries from 28 to 3 nanometers.

A 10% customer rise is expected in Q2, and the company plans to enter the 64 gig PAM4 PCIe Gen 6 market. The AEC product line remains a key revenue source, with 800 gig solutions in production and 3-nanometer products for the 1.6T port market expected by 2025. Investor sentiments remain positive for the future, as it’s held by 36 hedge funds currently, of which the highest stake is at $121,097,060 by Driehaus Capital.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is ready for significant growth as it capitalizes on the dynamic data center market, particularly with the rising demand from emerging hyper scalers and next-tier operators eager to leverage AI technologies. This makes it a top new stock to check out.

NCG Small Cap Strategy stated the following regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) in its Q2 2024 investor letter:

“Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a semiconductor company focused on high-speed connectivity in the data infrastructure market, primarily the data center market. CRDO’s products enable higher data connectivity speeds with improved power efficiency, and CRDO is seeing accelerated adoption as these products are helping to enable next-generation AI data centers.”

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