Credo Technology gains hedge fund backing and AI infrastructure demand, driving shares up 270% over the past year.
Credo Technology Group (NASDAQ:CRDO) has become a top holding in a ChatGPT-themed stock portfolio, reflecting strong demand for its high-speed connectivity products in AI data centers. The stock has climbed 270% over the past year, supported by 59 hedge funds holding positions as of the latest filings.
The company supplies critical components for AI infrastructure, including active electrical cables and optical solutions, enabling faster data transfer between GPUs, servers, and networking equipment. Hyperscalers like Amazon, Microsoft, and Meta are driving demand as they expand AI clusters requiring efficient networking systems.
Credo’s gross margins in the mid-to-high 60% range highlight its pricing power and profitability, unusual for a hardware-focused semiconductor firm. Expansion into optical DSPs and photonics further positions it for long-term growth in AI-driven markets.