Credo Technology(CRDO) Soars 4.25% on Product Expansion, PILOT Platform Launch

Mover TrackerTuesday, May 20, 2025 7:11 pm ET
3min read

Credo Technology(CRDO) shares rose 0.24% today, marking the third consecutive day of gains, with a total increase of 4.25% over the past three days. The stock price reached its highest level since February 2025, with an intraday gain of 0.81%.

The strategy of buying (CRDO) shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and relatively stable annualized returns.

Maximum Drawdown: The maximum drawdown during this period was -35.94% in May 2025, which occurred shortly after the high point of the stock price. This significant decline reflects the volatility of the tech sector and the broader market.

Annualized Returns: The annualized return for this strategy was approximately 5.5% over the past 5 years. While this is not a high rate of return, it does provide a modest positive performance, indicating that the strategy of holding shares for 1 week after a recent high point can offer some stability in a volatile market.

Comparison with Market Performance: It's important to note that the annualized return of 5.5% slightly underperforms the broader market, as indicated by a hypothetical benchmark. This suggests that while the strategy provides some protection against losses, it may not keep pace with the overall market trend.

Conclusion: The strategy of buying CRDO shares after a recent high and holding for 1 week offers some downside protection, as evidenced by the maximum drawdown of -35.94%. However, the annualized returns of approximately 5.5% over the past 5 years suggest that this strategy may not be highly profitable and could be considered conservative. Investors should weigh the potential for modest returns against the risks associated with market volatility and the specific factors influencing CRDO's stock price.

Analysts have highlighted several factors contributing to the positive momentum in Credo Technology's stock. One key driver is the company's product expansion and growth forecast. Analysts predict significant growth in Credo's revenue and earnings due to the expansion of its product lines, indicating potential for sustained growth. This expansion is expected to positively influence the stock price by attracting more investors and increasing market confidence.


Another significant development is the launch of the PILOT platform by Credo Technology Group. This platform is designed to enhance high-speed connectivity solutions, which is a critical area for technological advancement. The availability of PILOT for evaluation on Credo's PCIe retimers and its planned rollout across SerDes, retimers, and system-level AECs over the coming quarters is expected to impact the stock positively. This innovation is likely to attract more customers and partners, further boosting the company's market position.


Additionally, there is an expectation of a strong earnings report in the upcoming Q4 FY 2025. Analysts anticipate potential upward revisions in earnings estimates, which could drive a stock rally. This positive outlook is based on the company's strong performance and the potential for continued growth in the coming quarters. Investors are closely watching these developments, as a strong earnings report could further propel the stock price higher.