Credo Technology remains a buy with strong Q3 growth and upside from AI and DustPhotonics deal

Credo Technology Group Holding Ltd. (CRDO) is recommended as a buy ahead of its Q4 earnings due to strong catalysts including the AI super-cycle and its recent acquisition of DustPhotonics. The company reported impressive Q3 results with 201.5% year-over-year revenue growth and 328% EPS growth, demonstrating strong operating leverage. The DustPhotonics acquisition expands CRDO's total addressable market and positions it well in optical and AEC solutions for hyperscalers. Despite a high price-to-earnings ratio, CRDO's price/earnings to growth ratio suggests significant upside potential of over 30% as growth and integration continue.