The significant surge in Credo Technology's share price by an impressive 245% was witnessed throughout 2024.
Credo Technology, the company known for their high-speed connectivity solutions in the data infrastructure market, saw their shares soar an impressive 245% in 2024. This staggering growth outpaced not only the S&P 500's 25% return but also the tech-heavy Nasdaq Composite's 29.6% gain. Even the AI chip leader, Nvidia, couldn't keep up with Credo's performance, which saw their shares surge 171% in 2024.
The main catalyst for Credo's success in 2024 was the strong demand for their products in AI-enabled data centers. These data centers are expanding rapidly to accommodate the growing need for AI capabilities, providing a lucrative market for Credo.
The stock's performance was rather sluggish in the early months of 2024, with a year-to-date gain of only 3.9%. However, things changed dramatically on May 30, when Credo released their fourth-quarter financial report for fiscal year 2024. The report showed impressive revenue growth of 89% to $60.8 million, which matched analyst expectations. Adjusted net income also surpassed expectations, rising from a loss of $0.04 per share in the year-ago period to $0.07 per share.
Credo's stock continued to climb throughout the rest of 2024, hitting a new high on Dec. 3 after the company released their financial report for the second quarter of fiscal year 2025. The report showed even more impressive growth, with revenue surging 64% to $72 million. This result easily beat analyst expectations, and the company's adjusted net income topped the consensus estimate by a wide margin.
Credo's management predicted strong growth for the fiscal third quarter, with revenue expected to range from $115 million to $125 million. This guidance likely contributed to the stock's incredible 48% increase after the release of the second-quarter report.
If you're a growth investor, Credo Technology is definitely worth keeping an eye on. Their next quarterly earnings report is expected to be released around late February.
[1]: Source: Yahoo Finance[4]: Source: TipRanks
Credo's impressive financial performance in 2024 attracted significant interest from investors, leading to an increased flow of money into the company. With their shares soaring and revenue surpassing expectations, Credo became an attractive option for those looking to invest in high-growth technology companies.
