What Makes Credo Technology Group Holding Ltd (CRDO) a Relevant Investment?

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter continued the market rally in May and June following waning policy uncertainty, a Fed rate cut, and animal spirits fueled by retail enthusiasm for high-growth potential markets, resulting in another double-digit gain. However, the strategy underperformed the benchmark, the Russell 2000 Growth Index, which gained 12.2%. The smallest market caps, the lowest returns on equity, and the highest beta names led the underperformance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, ClearBridge Small Cap Growth Strategy highlighted stocks such as Credo Technology Group Holding Ltd (NASDAQ:CRDO). Credo Technology Group Holding Ltd (NASDAQ:CRDO) offers a wide range of high-speed connectivity solutions for optical and electrical Ethernet applications. The one-month return of Credo Technology Group Holding Ltd (NASDAQ:CRDO) was -15.34%, and its shares gained 263.91% of their value over the last 52 weeks. On October 10, 2025, Credo Technology Group Holding Ltd (NASDAQ:CRDO) stock closed at $138.83 per share, with a market capitalization of $24.017 billion.

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

“Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a semiconductor connectivity company providing solutions primarily to support data transfer inside of data centers. Credo has the leading market share within a niche industry and is benefiting from the unprecedented AI infrastructure buildout and exponential growth in data transfer needs.”

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

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Credo Technology Group Holding Ltd (NASDAQ:CRDO) at the end of the second quarter, which was 41 in the previous quarter. Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported revenue of $223 million in fiscal Q1 2026, reflecting an increase of 31% sequentially and 274% year over year. While we acknowledge the risk and potential of Credo Technology Group Holding Ltd (NASDAQ: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 Credo Technology Group Holding Ltd (NASDAQ:CRDO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Credo Technology Group Holding Ltd (NASDAQ:CRDO) and shared the list of stocks moving on key analyst calls. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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