Investing.com – Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported a 64% rise in second-quarter revenue on Monday, driven by strong demand for its connectivity solutions, fueled by growing AI deployments. At the same time, the company reduced its quarterly loss
Shares of Credo rose more than 33% in premarket trading on Tuesday.
The cable maker reported $72 million in revenue for the quarter ended Nov. 2, a significant year-over-year increase. GAAP net loss decreased to $0.03 per share, compared to a loss of $0.04 per share in the same period last year.
Credo expects third-quarter revenue between $115 million and $125 million, with GAAP gross margin expected to be in the range of 60.6% to 62.6%. The company anticipates operating expenses of $58.6 million to $60.6 million on a GAAP basis.
Analysts at Mizuho (NYSE: MFG ) reiterated an outperform rating on Credo shares after the report and raised their price target to $70 from $49, highlighting an “AEC tilt with a roadmap pointing to stronger” estimates for calendar year 2025.
“CRDO is significantly expanding AEC capacity to C25E, adding new production in Malaysia, but we believe it could further expand its supply chain and AEC manufacturing capacity by 50-100% y/y to C25E as demand remains strong with 100G/200G on lane. AI server ramps, putting AEC in a good position with much better performance compared to current optical DACs,” the analysts wrote.
Pratyush Thakur contributed to this report.
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