To The Moon

$CREDO TECHNOLOGY GROUP HOLDING LTD(CRDO)$

Data infrastructure networking solutions and licenses provider Credo Technology (NASDAQ: CRDO) stock is only down a merciful (-3%) for the year. It’s worth noting that the fabless semiconductor company only recently IPO’ed in January of 2022 but shares have been resilient due to its strong 90% top-line growth. As a supplier of high-speed connectivity solutions to the data infrastructure market, optimism in the seemingly recession-proof data infrastructure segment is strong. However, the technology bear market has caused investors to choose value and profits over growth and momentum. The Company was able to navigate the supply chain as one its partners in China was shut down during the COVID lockdowns limiting its ability to address customer demand in fiscal Q4 2022. Despite the challenge, many of its larger customers have affirmed backlog that extends 52 weeks. The Company continues to see increasing demand of its solutions from optical module manufacturers, hyperscalers to networking OEMs and ODMs. Credo raised its forward top-line guidance and expects to nearly double its revenues north of $200 million in fiscal 2023. Prudent investors looking for a growth play in the data infrastructure segment can watch for opportunistic pullbacks in shares of Credo Technology.