Credo Technology (CRDO): Billionaire Steve Cohen Continues to Be Bullish

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the 10 Best Stocks to Invest In According to Billionaire Steve Cohen.

Credo Technology Group Holding Ltd (NASDAQ:CRDO) has been a staple in the 13F portfolio of Point72 Asset Management since the beginning of 2022. Back then, this holding comprised just 670,000 shares. In the coming quarters, Steve Cohen grew this into 4.8 million shares. By the first quarter of 2025, it had been increased to 6.2 million shares. After reducing the position by close to 44% in the second quarter of 2025, the fund proceeded to increase it by 15% and 17% in the third and fourth quarter of 2025 respectively. At the end of 2025, the fund owned 5.6 million shares of the company.

READ ALSO: 10 Best Stocks to Buy According to Billionaire Paul Tudor Jones.

Why Credo Technology Group Holding Ltd (CRDO) Skyrocketed On Tuesday

Credo Technology Group Holding Ltd (NASDAQ:CRDO) has attained a dominant position in Active Electrical Cables (AECs), which have become the industry standard for connecting AI server racks. Hedge funds are thus bullish on the shares. For context, traditional copper cables fail at distances over 3 meters at high speeds, while optical fibers are too expensive and power-hungry for short-range links. Credo’s AECs fill the 3–7 meter gap, which represents the majority of connections in a massive AI cluster. Institutional investors are also particularly bullish on Credo’s ZeroFlap feature. In high-stakes GPU training, like NVIDIA’s Blackwell clusters, a single link flap can crash a weeks-long training run, costing millions. Hedge funds view Credo’s reliability as a toll collector requirement for hyperscalers.

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.

READ NEXT: 12 Best Stocks to Buy According to Billionaire David Abrams and 15 Best Stocks to Buy According to Billionaire Seth Klarman.

Disclosure: None. Follow Insider Monkey on Google News.