Why Credo Technology (CRDO) Skyrocketed on Friday?

We recently published a list of 10 Firms Buck Market Slump on Impressive Earnings, New Deals. In this article, we are going to take a look at where Credo Technology Group Holding Ltd (NASDAQ:CRDO) stands against other firms buck market slump on impressive earnings, new deals.

The stock market ended the trading week in the red territory following President Donald Trump’s announcement that he would begin slapping tariffs against major US trading partners.

The Dow Jones shed 0.75 percent, the S&P 500 lost 0.50 percent, while the Nasdaq Composite dropped by 0.28 percent.

Ten companies bucked a wider market decline amid a flurry of positive catalysts that sparked buying appetite. In this article, we will take a look at which companies posted notable gains and explore the reasons behind their performance.

To come up with Friday’s gainers, we only considered those with $2 billion in market capitalization and $5 million in daily trading volume.

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

Credo Technology Group Holding Ltd (NASDAQ:CRDO)

Credo Technology Group Holding Ltd (NASDAQ:CRDO) grew for a fourth day on Friday, adding another 8.39 percent to its valuation to finish at $70.02 apiece as investors gobbled up shares amid various bullish reports in the company.

Over the past six months alone, Credo Technology (NASDAQ:CRDO) was able to grow its value by nearly 150 percent. Its current valuation also marked a 207.91 percent increase over the past year.

Earlier this month, Mizuho Financial analyst Vijay Rakesh raised his price target for Credo Technology by 21 percent to $85 from $70 previously and kept an “outperform” rating on the company.

According to Rakesh, he sees continued strength in artificial intelligence, custom silicon, and connectivity, the benefits of which will create a ripple effect in the company. He added that AI will benefit memory and storage.

Credo Technology (NASDAQ:CRDO) is a company engaged in providing secure, high-speed connectivity solutions that deliver improved power and cost efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market.

Overall, CRDO ranks 7th on our list of firms buck market slump on impressive earnings, new deals. While we acknowledge the potential of 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 time frame. If you are looking for an AI stock that is more promising than CRDO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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