10 Worst Aggressive Growth Stocks to Buy According to Short Sellers

4. Credo Technology Group Holding Ltd (NASDAQ:CRDO)

Short % of Float (As of May 30): 5.93%

Number of Hedge Fund Holders: 41

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers. On June 18, TD Cowen upped the company’s price objective to $95.00 from $85.00, while maintaining a “Buy” rating, as reported by The Fly. The firm believes that despite its strong progress to date, there is significant runway to its story, which is yet to be seen. This is tied to high-speed connectivity for datacenter artificial intelligence, added the analyst.

The firm sees Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s growth story as early, open-ended, and diversifying. The company’s proprietary technology emphasises low-power, high-speed connectivity solutions, which cater to expanding market opportunities fueled by AI proliferation and faster line-rate speeds in back-end and front-end networks. The firm has tagged datacenter as the most attractive semiconductor end market, and expects that networking infrastructure and connectivity will be the fastest-growing sub-segment in that space.

Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s product portfolio consists of Active Electric Cables, optical Digital Signal Processors, and other connectivity-related chipsets. Such products place the company squarely at the intersection of the growing industry verticals, added the firm. For Q1 2026, Credo Technology Group Holding Ltd (NASDAQ:CRDO) expects its revenue to be in the range of $185.0 million – $195.0 million, with GAAP gross margin to be between 63.4% – 65.4%.

Renaissance Investment Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Credo Technology Group Holding Ltd (NASDAQ:CRDO), a provider of connectivity solutions for data centers, was our best performing stock in the fourth quarter. The company’s products target the AI-server market with very high bandwidth connectivity rates and low-power solutions. In the most recently reported quarter, the company saw increased demand from current customers along with the ramping of a new customer that drove revenue guidance significantly above expectations. Moreover, the company expects revenues for the next fiscal year to grow by at least 50%. We believe the market share opportunities for Credo are still in the early stages, as the company continues to engage with large hyperscalers and the demand for AI servers and infrastructure remains robust.”