Investing.com — Credo Technology Group Holding Ltd (NASDAQ:) on Monday posted a 64% increase in second-quarter revenue, driven by robust demand for its connectivity solutions fueled by increasing AI deployments. The company also narrowed its quarterly loss
Shares of Credo rose more than 33% in premarket trading on Tuesday.
The cable maker posted revenue of $72 million for the quarter ended Nov. 2, a substantial year-over-year increase. GAAP net loss narrowed to $0.03 per share, compared to a loss of $0.04 per share in the same period a year earlier.
Credo expects third-quarter revenue between $115 million and $125 million, with GAAP gross margin expected to range from 60.6% to 62.6%. The company expects operating costs of $58.6 million to $60.6 million on a GAAP basis.
Mizuho (NYSE:) analysts reiterated an Outperform rating on Credo shares following the report and raised the price target to $70 from $49, highlighting an “AEC inflection with roadmap pointing to stronger” calendar year estimates 2025.
“CRDO is significantly expanding AEC capacity into C25E and adding new production in Malaysia, but we believe it can further expand its supply chain and AEC production capacity by 50-100% y/y into C25E as demand remains strong with 100G/200G per lane. AI server ramps, which position AEC well with much better power performance compared to current optical DACs,” analysts wrote.
Pratyush Thakur contributed to this report.
