Credo (CRDO) Crashes 13.4% on Profit-Taking; Investors Shun ‘Buy’ Reco

We recently published 10 Stocks Hammered Harder than Wall Street. Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is one of the worst performers on Tuesday.

Credo Technology fell by 13.44 percent on Tuesday to finish at $129.75 apiece as investors resorted to profit-taking following the previous day’s gains.

The share price dropped despite investment firm Stifel reiterating a “buy” recommendation for its stock at a price of $160 apiece.

According to Stifel, Credo Technology Group Holding Ltd. (NASDAQ:CRDO), its optimism was based on the company’s launch of its 800G HiWire ZeroFlap AECs to deliver highly reliable interconnect for artificial intelligence (AI) backend networks.

With improved reach and signal integrity, the HiWire ZF AECs deliver zero soft link flaps to support the lossless backend RDMA network that AI clusters are built on. The 800G AECs benefit from the newest advances in liquid cooling, allowing the 7-meter length to enable full host-to-switch connectivity in leading GPU clusters.

“Credo’s new HiWire ZeroFlap AECs enable a step function improvement in GPU cluster reliability by eliminating the soft link flaps frequently seen with legacy optics,” said Credo Technology Group Holding Ltd. (NASDAQ:CRDO) Head of AEC Product Ameet Suri.

“Further, when compared to legacy optics, Credo’s HiWire AECs offer power savings of up to 14W per link and cost savings of up to $1,000 per GPU,” he noted.

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 this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.