Credo: Better Than Nvidia For AI Infrastructure In 2025
- Credo Technology offers critical interconnect solutions for connecting GPUs produced by NVIDIA, enhancing performance and energy efficiency in data centers, making it a strong AI infrastructure player.
- Despite competition, Credo's proprietary technology and nimbleness enable it to quickly adapt to market changes and customer needs, especially when it comes to balancing energy usage between power-hungry GPUs and power-constrained data centers.
- Credo's strategic partnerships with major hyperscalers and involvement in the HiWire Consortium enhance its market position and growth potential in high-speed connectivity solutions.
- With a trailing non-GAAP P/E of 124x, Credo may appear overpriced relative to the IT sector, but, it is important to go beyond the academic dimension to justify a higher target.
- Also, with high expectations, come volatility risks for Credo, but with geopolitics likely to come to the fore in 2025, NVIDIA's stock is likely to suffer more.
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While NVIDIA (NASDAQ:NVDA) produces the superfast chips needed to support GenAI, Credo Technology (NASDAQ:CRDO) plays a crucial role in ensuring that these are connected in data-intensive environments energy-efficiently.
Still, investors have trusted the semiconductor giant more, explaining why its stock
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