After markets closed on Monday, Credo Technology (CRDO) posted a strong increase in revenue. CRDO stock gained 12% in after-hours trade and should open strongly this morning.
Credo supplies connectivity solutions for the hyperscale data center, 5G, and the artificial intelligence/machine learning markets. In the fourth quarter, revenue surged by 179.7% to $170.03 million. In Q1, revenue of $185 million to $195 million is above analyst consensus estimates. GAAP gross margins are strong while expenses are manageable.
Watch for the follow-through from the 48.46% gain in Applied Digital (APLD) yesterday. The company secured two lease agreements that run for 15 years with CoreWeave (CRWV). This would add $7 billion in total revenue in that time. Applied Digital’s CEO, Wes Cummins, cited exponential AI demand growth. He said, “We believe that we are uniquely positioned to deliver substantial returns while supporting the evolving and dynamic needs of these rapidly evolving sectors.”
APLD is probably a generational opportunity today, despite already rising by so much.
Snowflake (SNOW) shares may continue its post-earnings uptrend. The firm announced on Monday its intent to buy AI startup Crunchy Data. Snowflake’s SVP of Engineering, Vivek Raghunathan, thinks that AI and enterprise data are a $350 billion market opportunity. This acquisition would bring Postgres to Snowflake’s AI Data Cloud. Crunchy Dapa provides next-gen Progres-native data warehouse support.
