Credo尚未过度上涨；增长放缓仍支持四年内约50%的上行空间。

Let's go to stock number two. Crito technology. What is a credo technology? Uh it's one of the highest growth companies in the world right now. To just kind of put some numbers into perspective, it just finished its fiscal 26. Fiscal 2026 revenue was three times or triple what fiscal 2025 revenue was. In fact, revenue in the fourth quarter of fiscal 2026 was larger than all of fiscal 2025 combined. So, it is growing really fast.

What it does is it provides these zeroflap active electric cables. And that sounds very complicated. Let's break it down. So, GPUs, they need to be connected to each other and clusters. um one to one there's just bigger and more connectivity between GPUs to make AI happen with zero flap. What do we mean? If there's a flap in a connection, basically the connection is temporarily dropped. Even if it's just a split-second drop, the connection can be lost. And what that does is for some AI applications, that means it's got to start over. Even just a momentary little bloop. And that is a big problem for cloud companies for their customers, especially NeoClouds that are renting by the hour. If all of a sudden their customers have to start over, they're not happy. So a zero flap solution is something that uh they want. Credo says it's uh connections are a thousand times more reliable than the competition and that could be a big deal.

Let's talk about the price about of this company as well. similar price to earnings multiple is about 37. Uh enterprise value to sales on a forward basis is about 17. So it does seem like the market's got pretty high expectations for this company.

Is this is there any risk here that they get designed out if you will in the future? I know that that's kind of the point where we're at with a a lot of these uh AI designs. So you would this would be a worry if you're a memory maker for example is you yeah we're using a ton of memory on the current generation of chips but if the prices are going to go up 3 400% we're going to try to design that a little bit differently in the future. Is that a concern for a company like this? Obviously a ton of tailwinds today but is it possible that growth slows significantly in the future?

Well there's multiple competitive angles here. I mean there are multiple different approaches to connecting GPUs together. It seems like the passive electrical cable that's kind of dying out. This is the active one. So, there's a chip on either end of the copper cable to make sure that not as much of the signal is lost, that there's higher fidelity and speed, lower latency, less power, right? Um there's also optical solutions. Um now, Credo does have optical things in its uh portfolio as well, but yes, competing with optical companies for sure. And then in its own kind of more core areas, I mean, Broadcom would be like one of the big competitors here. So, yeah, it's definitely possible.

Now, you look at though what it expects for this coming year. It just tripled revenue, expecting another 80% growth this year. That would take you to about 2.5 billion in revenue in the coming year. Let's just assume that it trails off to 30% growth in the subsequent three years. Now you're at a $5 billion company. This is a fabulous semiconductor company. Margins already pushing north. Maybe it gets to 50% margins. I don't think that that's crazy to think. So now you got 2.5 billion in profits. What if it trades at 25x that? That's a 62 billion company. That's about 50% upside from where it trades today over the next four years. So I think there is a reasonable case here that it hasn't run too far. And even decelerating growth gets it to a good place.

maybe I should answer this uh with my wallet. I own shares of Credo and I own shares of construction partners, but my position in Credo is bigger than Construction Partners and I currently do not have a position in form factor, even though I probably like that one first of the three.

So that means credo technology goes to number three. Sorry again, [snorts] very complicated solution, complicated product. Maybe I get this completely wrong, but it this almost seems like one of those areas that unless you're really really deep into that and understand are you going to be in the next generation of GPUs? Are you going to have tailwinds from AMD's growth or you know all of these things are are are really complex and I just don't feel like I have a area of expertise in that. So maybe that pushes it down a little bit. But definitely one of those compelling products that triple triple digit growth definitely something you want to see as an investor.