Why Credo Technology Group Holding Ltd. (CRDO) Soared on Thursday

We recently compiled a list of the 10 Firms Lead Thursday’s Rally on Better Earnings, Bargain-Hunting. In this article, we are going to take a look at where Credo Technology Group Holding Ltd. (CRDO) stands against the other stocks.

Optimistic sentiment continued to drive Wall Street on Thursday, with all major indices closing higher.

The Dow Jones Industrial Average rose by 0.38 percent, the S&P 500 grew 0.53 percent, and the Nasdaq Composite was up by 0.25 percent.

Ten companies posted notable gains, largely fueled by strong earnings results for the fourth quarter and full-year 2024.

To come up with Thursday’s top gainers, we considered only the stocks with at least $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 jumped by 9.88 percent on Thursday to end at $64.60 per share as investors gobbled up shares amid various bullish reports in the company.

Over the past six months alone, Credo Technology 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 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 8th on our list of Thursday’s top gainers. 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 timeframe. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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