Credo Technology Group Holding Ltd. (NASDAQ:CRDO) saw its share price climb by 8.82 percent on Monday to finish at $282.82, as investors began positioning their portfolios ahead of its earnings results for the first quarter of fiscal year 2027.
According to the company, it is scheduled to release the results after market close on September 1, 2026. A conference call will be held to elaborate on the results.
For illustration purposes only. Photo by Sergei Starostin on Pexels
Q1 Revenues to More Than Double
In its last earnings call, Credo Technology Group Holding Ltd. (NASDAQ:CRDO) earlier guided a revenue outlook of $465 million to $475 million for the first quarter of 2027, or an implied growth of 108 percent to 113 percent from the $223.1 million posted in the same period a year earlier.
GAAP gross margin is expected to be between 66.9 percent and 68.9 percent, while non-GAAP gross margin is targeted at 67 to 69 percent.
“As we enter into fiscal 2027, Credo expects to achieve continued strong financial performance with our innovative and vertically integrated approach that enables customers to accelerate cluster time-to-stability, maximize GPU utilization, improve network reliability, and reduce overall infrastructure power and operating costs,” Credo Technology Group Holding Ltd. (NASDAQ:CRDO) President and CEO Bill Brennan said.
Lower Hedge Fund Participation
Despite the ongoing AI boom, hedge fund sentiment appeared to have soured for Credo Technology Group Holding Ltd. (NASDAQ:CRDO) in the first quarter of the year.
During the period, Insider Monkey data showed that 59 hedge funds held positions in the stock, down from 69 the quarter previously. Their combined holdings also fell by 24 percent to $1.9 billion from $2.5 billion quarter-on-quarter, signaling that investors were cutting their exposure in the stock amid lingering concerns about the sustainability of the semiconductor rally.
As data predates its strong earnings performance in the fourth quarter of fiscal year 2026, investors will likely be digesting updated hedge fund positioning to determine whether its stellar earnings performance strengthened institutional conviction.
In the fourth quarter ending May 2026, the company grew its net income by 362 percent to $169 million from $36.59 million in the same period last year, while revenues jumped by 157 percent to $437 million from $170 million year-on-year.
While we acknowledge the risk and potential of CRDO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRDO and that has 10,000% upside potential, check out our report about the cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center