Jim Cramer Shared His Recent Takes on These 15 Stocks

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

Number of Hedge Fund Holders: 48

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the stocks Jim Cramer shared his take on. Cramer said that it is an “exceptional” year for the stock, as he remarked:

“After that report, it’s looking like Credo will be able to put up nearly threefold earnings growth this year. It’s like a mini NVIDIA. It’s a rocket ship…. It’s tremendously profitable with breathtaking earnings growth… All that said, I’m going to give you some caveats because it’s up so much. For starters, this company’s level of company concentration for their customers is way too high… Second issue, lately, we’ve seen some insider selling…

For as long as the data center theme remains real hot, I’d be looking at a pullback like this as a buying opportunity, not a bail. Still, we need to pay attention to the levels here. I think the stock’s become irresistible in the low 120s. That’s where I really want to buy it… Credo’s expected to grow earnings at an almost 200% clip this year. So in theory, you could pay 400 times earnings for this one, but that’s not right. It’s an exceptional year for Credo. If you look out to next fiscal year, Wall Street’s only looking for 24% earnings growth. I suspect those estimates will turn out to be too low, but I like to play it a little cautious with a stock that’s up this much…

Credo Technology Group deserves to be talked about along with all the other data centers, semiconductor network winners… This has got great products and even better financials. I don’t love the customer concentration, but the velocity of Credo’s growth is undeniable, and the stock only gets more attractive as it gets dragged down by the sell-off in all things momentum.

Unlike the speculative plays that are getting hit real hard, this one’s got real earnings, which means it genuinely does get cheaper as it goes lower. You can put on a small position here, that’s fine if you really like it. But I suggest waiting for it to come down to the 120s before you really load up. It’s a special company, but you know what? Price still matters.”

Credo Technology Group Holding Ltd (NASDAQ:CRDO) delivers high-speed connectivity solutions for Ethernet and PCIe through cables, optical DSPs, SerDes chiplets, IP, and integrated circuits. The company serves hyperscalers, OEMs, and enterprise markets with products, licensing, and support services.