Why Credo Technology Stock Absolutely Crushed It This Week
Credo shares just ripped through the market—leaving traditional finance in the dust.
Massive Institutional Moves
Big money flooded into CRDO as crypto infrastructure plays heated up. Wall Street finally gets it: blockchain isn’t a side bet—it’s the main event.
Tech That Actually Scales
Credo’s high-speed data solutions support the backbone of AI and decentralized networks. No vaporware here—just real revenue, real adoption.
Short Squeeze Fuel
Bearish hedgies got torched as momentum traders piled in. Another reminder: betting against tech innovation is a expensive hobby.
Crypto tailwinds don’t hurt either. While bankers debate rate cuts, builders are deploying capital—efficiently, on-chain, without permission. Funny how that works.
Massive improvements
Arguably the most impressive facet of Credo's fiscal first quarter of 2026 was its revenue line. This ballooned nearly fourfold year over year to over $233 million for the period. Both of its main top-line sources saw notable improvements with the larger one -- product sales -- zooming to over $217 million from the $57 million of 2025's Q1. IP licensing brought in $6 million from the year-ago $2.4 million.
Image source: Getty Images.
Compounding that, the top-line figure trounced the average analyst estimate. Collectively, pundits tracking Credo stock were expecting the company to book less than $191 million.
These dynamics were similar for non-GAAP (adjusted) profitability. In the quarter, Credo netted $98.3 million ($0.52 per share), easily bettering the $65.3 million in the same period of fiscal 2025.
We're in something of a data center arms race, with many operators of such facilities eager to build them out to accommodate artificial intelligence (AI) functionalities. So this is something of a boom time for data center equipment companies, and Credo is clearly taking good advantage of the opportunity.
A beat on guidance too
Credo also proffered guidance for its current (second) quarter, forecasting that its revenue will come in at $230 million to $240 million. That's well above the analyst consensus of $199 million. The company's adjusted gross margin should range from 64% to 66%. It did not provide any bottom-line projections.
