Shares of Credo Technology Group (CRDO 1.24%) climbed on Tuesday after the maker of high-speed cables used in artificial intelligence (AI) data centers reported sizzling growth metrics.
By the close of trading, Credo's stock price was up more than 10%.
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Business is booming
Credo's revenue rocketed 272% year over year to $268 million in its fiscal 2026 second quarter, which ended on Nov. 1. These torrid gains were fueled by surging demand for Credo's connectivity solutions among hyperscalers and other major AI adopters.
"These are the strongest quarterly results in Credo's history, and they reflect the continued build-out of the world's largest AI training and inference clusters," CEO Bill Brennan said.
NASDAQ: CRDO
Key Data Points
Better still, Credo's revenue gains turbocharged its profit growth. The company's adjusted net income increased more than tenfold to $128 million, or $0.67 per share. That was well above Wall Street's projections, which had called for earnings per share of $0.50.
Management sees more AI-driven gains ahead
Credo guided for revenue of $335 million to $345 million in its fiscal third quarter. That would represent year-over-year growth of 148% to 156%.
"Reliability, power efficiency, signal integrity, latency, reach, and total cost of ownership have all become mission-critical," Brennan said. "This is the challenge our customers face, and it's where Credo is uniquely positioned to deliver the solutions they need to succeed."
