Core Insights - The AI infrastructure boom is driving significant demand for data centers, which require substantial power and speed to operate effectively [1][2] Group 1: Fluence Energy - Fluence Energy specializes in industrial-scale battery modules that provide stable energy for AI servers, particularly when paired with renewable energy sources [3][4] - The company was established in 2018 as a joint venture between Siemens and AES, and while revenues have been flat, analysts predict a 57% increase in annual sales over the next two years, driven by data center demand [4][5] - Fluence has 36 GWh of data center projects in development, with a total installed capacity of 46 GWh as of last September, indicating a significant growth opportunity [5][6] Group 2: Credo Technology Group - Credo Technology offers high-speed networking tools that help data center operators reduce power consumption and cooling needs while maintaining performance [7][8] - The company's Active Electrical Cables (AECs) can achieve data flows of up to 0.8 terabits per second, making them competitive with fiber-optic networks but with lower power requirements [8][9] - Credo's revenues are heavily reliant on a few major clients, with one unnamed client accounting for 67% of total revenues in fiscal year 2025, but the company reported a significant revenue increase to approximately $406 million in Q3 2026, tripling from the previous year [12][13]

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on stocks that have recently experienced sell-offs due to non-recurrent events, particularly when insiders are buying shares at lower prices [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach to risk and potential returns [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts [1] Stock Selection Criteria - The investor screens for stocks that have undergone recent sell-offs, particularly those influenced by non-recurrent events, to identify potential buying opportunities [1] - Insider buying at lower prices serves as a key indicator for selecting stocks, reflecting confidence from company executives [1] - Professional background checks are conducted on insiders who purchase shares post-sell-off to ensure credibility and assess motivations [1]

We recently published 10 Stocks Delivering Massive Returns. Credo Technology Group Holding Ltd (NASDAQ:CRDO) was one of the best performers on Tuesday. Credo Technology extended its winning streak to a fourth consecutive day on Tuesday, jumping 9.16 percent to close at $134.72 apiece as investor sentiment was bolstered by a highly optimistic outlook for this year and the next, with revenues targeted to more than triple year-on-year. In a statement, the company said it expects revenues to grow by “more t ...

Core Viewpoint - The article discusses the initiation of coverage on Credo Technology Group Holding Ltd (CRDO) stock with a "Buy" rating, highlighting its rapid price increase since February 2024 [1]. Group 1: Company Overview - Credo Technology Group Holding Ltd (CRDO) has been identified as a promising investment opportunity due to its recent stock price performance [1]. Group 2: Analyst Insights - The analysis is conducted by a chief investment analyst at a family office, emphasizing the importance of filtering vast amounts of information to identify critical investment ideas [1]. - The investing group, Beyond the Wall Investing, provides insights similar to those prioritized by institutional market participants [1].

Group 1 - The article discusses the abrupt halt in the stock performance of Credo Technology Group Holding Ltd. (CRDO) for investors who entered in December 2025, indicating a distinct peak formation [1] - The author is recognized as a Top Analyst by TipRanks and Seeking Alpha, focusing on technology, software, and internet sectors, as well as growth and GARP strategies [1] - The investment strategy emphasizes identifying attractive risk/reward opportunities with robust price action to potentially generate alpha above the S&P 500 [1] Group 2 - The investment group Ultimate Growth Investing specializes in identifying high-potential opportunities across various sectors, focusing on stocks with strong growth potential and contrarian plays [1] - The approach combines price action analysis with fundamental analysis, avoiding overhyped stocks while capitalizing on undervalued stocks with recovery potential [1] - The article does not provide any specific investment recommendations or advice regarding the suitability of investments for particular investors [2]

Group 1 - The core viewpoint of the analysis is a cautious stance on Credo Technology Group (CRDO) due to valuations reflecting an overly optimistic growth trajectory [1] - The previous analysis highlighted that even in August 2025, Credo was executing well, indicating a focus on the company's operational performance [1] Group 2 - The analyst has over 20 years of experience in quantitative research, financial modeling, and risk management, emphasizing a strong background in equity valuation and market trends [1] - The approach combines rigorous risk management with a long-term perspective on value creation, focusing on macroeconomic trends, corporate earnings, and financial statement analysis [1]

Group 1 - Credo Technology Group Holding Ltd. (CRDO) shares increased by 9.2% to close at $134.72, supported by strong trading volume, despite a 20.9% loss over the past four weeks [1] - The company is projected to report quarterly earnings of $0.78 per share, reflecting a year-over-year increase of 212%, with revenues expected to reach $339.99 million, up 151.8% from the previous year [2] - The consensus EPS estimate for Credo Technology has remained stable over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] Group 2 - Credo Technology Group is categorized within the Zacks Electronics - Semiconductors industry, where QuickLogic (QUIK) has seen a 3.2% decline in its stock price, closing at $6.97, and has returned -1% over the past month [3] - QuickLogic's consensus EPS estimate for the upcoming report is unchanged at -$0.11, representing a significant year-over-year decline of 375% [4]

Economic Indicators - Nonfarm payrolls are expected to increase by +68,000 in January, with the unemployment rate remaining unchanged at 4.4% [1] - Average hourly earnings are projected to rise by +0.3% month-over-month and +3.7% year-over-year in January [1] - Initial weekly unemployment claims are anticipated to decrease by -7,000 to 224,000 [1] - Existing home sales in January are expected to decline by -4.3% month-over-month to 4.16 million [1] - January CPI is expected to rise by +2.5% year-over-year, with core CPI also expected to increase by +2.5% year-over-year [1] Retail Sales and Employment Costs - US December retail sales were unchanged month-over-month, falling short of expectations of +0.4% [2] - The employment cost index for Q4 rose by +0.7% quarter-over-quarter, which is the smallest increase in 4.5 years and below the expected +0.8% [2] Stock Market Performance - Stock indexes experienced mixed trading, with the Dow Jones reaching a new all-time high while the S&P 500 closed down -0.33% and the Nasdaq down -0.56% [6][5] - The broader market initially found support from weaker-than-expected retail sales and employment cost index reports, which lowered bond yields [5] Earnings Season Insights - Over half of the S&P 500 companies have reported earnings, with 78% beating expectations [7] - S&P earnings growth is expected to rise by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [7] - Excluding the Magnificent Seven tech stocks, Q4 earnings are projected to increase by +4.6% [7] Interest Rates and Bond Market - The markets are pricing in a 23% chance of a -25 basis point rate cut at the next Federal Reserve meeting [8] - The 10-year T-note yield fell to a 3.5-week low of 4.13%, supported by weaker-than-expected economic reports [9] Sector Performance - AI-infrastructure stocks faced pressure, with Western Digital down more than -7% and other tech stocks also declining [12] - Wealth-management stocks dropped significantly, with Raymond James Financial down more than -8% due to concerns over AI disruption [13] - Homebuilding stocks rose after the drop in mortgage rates, with Toll Brothers up more than +6% [14] Company-Specific Developments - Goodyear Tire & Rubber Co reported Q4 adjusted EPS of 39 cents, below the consensus of 49 cents, leading to a decline of more than -14% [15] - Incyte forecasted dull-year total net product revenue of $4.77 billion to $4.94 billion, causing a drop of more than -8% [16] - Spotify reported a record 38 million monthly active users in Q4, leading to a rise of more than +17% [17]

Core Viewpoint - Investors are concerned about the impact of co-packaged optics on Credo's active electrical cables business [1] Group 1 - The rise of co-packaged optics is seen as a potential threat to Credo's market position in the active electrical cables sector [1] - There is growing investor anxiety regarding how this technology could disrupt existing business models within the industry [1]

Credo Technology Group Holding Ltd (NASDAQ:CRDO) doesn't report earnings until March, but the chip stock is already enjoying tailwinds from the company's preliminary third-quarter revenue beat and raised forecast. On track for its fourth-straight gain and third-straight double-digit percentage pop, CRDO was last seen up 11.2% to trade at $137.04. Prior to the extended rebound over the past few days, Credo Technology stock hit a Feb. 5, six-month low of $94.19. Though the shares are down 4.5% year to date, t ...