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Is Credo (CRDO) The Most Underrated AI Stock to Buy?

We recently published 10 Stocks Moving On Key Analyst Calls. Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the stocks analysts were recently talking about.

Clare Pleydell-Bouverie, Co-Head of Global Innovation Team at Liontrust Asset Management, recently talked about the importance of networking in the AI revolution and mentioned some stocks she likes in the space during a program on CNBC. The analyst is bullish on Credo Technology, which provides high-speed connectivity solutions for optical and electrical Ethernet and PCIe applications. Here is what the analyst said:

“Networking we think is possibly the most underappreciated growth story stretching out over the decade. And that’s because the chip is no longer the unit of compute. The data center is. Speed and performance are as much determined by system level connectivity as it is by raw compute. And we’ve got clusters of these chips moving to a million in the data center. So that’s an awful lot of networking. Historically, networking maybe captured 10% of every dollar’s worth of investment in AI infrastructure. That’s moving to 20–30%. The key players we’re looking for here would be the likes of Broadcom, leader in Ethernet networking, Credo who is wiring up as we speak XAI’s Prometheus cluster, as well as Amazon’s Trainium clusters.”

Renaissance Investment Small Cap Growth Strategy stated the following regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) in its second quarter 2025 investor letter:

“The top contributor to performance was Credo Technology Group Holding Ltd (NASDAQ:CRDO), a semiconductor and connectivity solutions provider that targets the AI data center market. The company grew revenues by nearly 180% in its most recent reported quarter and expects revenue growth to be greater than 200% in the current quarter. The company is benefiting from the AI data center buildouts by its largest customers, including Amazon and Microsoft. In addition, the company expects to ramp revenues with two new hyperscale customers in fiscal 2026. While we expect revenue growth to slow later this year, the company should continue to see robust growth going forward.”

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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 175 Teslas
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  • 140 Metas
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  • 65 Microsofts
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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