Should You Invest in Credo Technology (CRDO)?

Next Century Growth Investors, LLC, an investment Management Company, released its “Small Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The equities market in 2024 saw mixed results in the second quarter. Small-cap indices generally posted negative results, whereas large-cap indices posted favorable results. The strategy returned (3.32)% net of fees in the quarter, compared to a (2.91)% return for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

NCG Small Cap Strategy highlighted stocks like Credo Technology Group Holding Ltd (NASDAQ:CRDO), in the second quarter 2024 investor letter. Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a high-speed connectivity solutions provider for optical and electrical Ethernet applications. The one-month return of Credo Technology Group Holding Ltd (NASDAQ:CRDO) was 32.53%, and its shares gained 113.85% of their value over the last 52 weeks. On August 29, 2024, Credo Technology Group Holding Ltd (NASDAQ:CRDO) stock closed at $35.20 per share with a market capitalization of $5.844 billion.

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.”

An engineer in a cleanroom testing and tweaking an integrated circuit.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Credo Technology Group Holding Ltd (NASDAQ:CRDO) at the end of the second quarter which was 27 in the previous quarter. In the most recent quarter, Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported $60.8 million in revenues and non-GAAP gross margin of 66.1%. While we acknowledge the potential of Credo Technology Group Holding Ltd (NASDAQ:CRDO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.