Credo Technology Group Holding Ltd

AI-connectivity semiconductor company (active electrical cables/SerDes) — highly profitable with explosive growth and elite free cash flow.

Strengths

• Highly profitable — gross margin 68% (92nd), operating margin 33% (93rd), net margin 35% (97th)
• Explosive growth, elite FCF — revenue +206% (97th), FCF $407M (75th), FCF margin 30%
• Fortress liquidity — current ratio 10.2 (93rd)

Risks

• AI-capex-cycle dependence — per 10-K
• Customer concentration — per 10-K
• Valuation-sensitivity to growth — per 10-K

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Customer concentration~90% of revenue from one customer/distributor — In addition, in fiscal 2026, sales to our top 10 customers accounted for approximately 90% of our total revenue
• Strong balance sheetStrong balance sheet — $1.4B cash & investments
• Insider sellingInsider selling — 325 open-market sale(s) by 8 insider(s) (cluster of 8 insiders, ~$132M, last 6mo) Form 4 ↗