5 Best Up and Coming AI Stocks to Buy Now

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

Number of Hedge Fund Holders: 59

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the Best Up and Coming AI Stocks to Buy Now. The company recently reported its fiscal Q4 2026 earnings on June 1. Following the release on June 2, Mizuho analyst Vijay Rakesh raised the price target on Credo Technology Group Holding Ltd (NASDAQ:CRDO) from $260 to $290 and maintained an Outperform rating on the shares.

​During the quarter, the company reported strong results with revenue growing 157% year-over-year to $437 million, ahead of the expected $433.3 million. The EPS of $1.16 also topped the $1.03 consensus estimate. Management noted the growth to be driven by surging demand for Active Electrical Cables and AI data center connectivity solutions. The company noted that customers are scaling larger GPU clusters, and Credo is benefiting directly.

​Notably, gross margins remained healthy at around 68%, and non-GAAP net income for the quarter came in at $277 million. Looking ahead, management guided Q1 fiscal 2027 revenue between $465 million and $475 million.

​Analyst Rakesh noted the quarter to be solid and also pointed out the guidance to be above consensus, hence increased the price target.

Founded in 2008, Credo Technology Group Holding Ltd (NASDAQ:CRDO) develops high-speed connectivity products and solutions for the data infra market (specifically optical and electrical Ethernet and PCIe applications), including SerDes chiplets, integrated circuits, and electrical cables. The company is based in the Cayman Islands.

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