Credo Technology (CRDO) Surges 14.3% on Record Earnings and Bold AI Infrastructure Expansion

Summary
• Credo Technology (CRDO) reports Q2 revenue of $268M, up 272% YoY
• Net income jumps to $82.6M, with non-GAAP EPS of $0.67
• Siemon licensing deal validates IP monetization strategy

Credo Technology (CRDO) has surged 14.3% intraday, trading at $195.68 after reporting historic Q2 results. The stock’s sharp move follows a 20% sequential revenue increase and a licensing agreement with The Siemon Company. With a 52-week high of $213.80 and a 7.6% turnover rate, the stock’s volatility underscores its role in AI infrastructure demand.

Q2 Earnings and Guidance Drive Credo's Record Performance
Credo’s 14.3% surge stems from a record $268M Q2 revenue, a 272% YoY jump, and $82.6M net income. The Siemon licensing deal, worth $6.7M in IP revenue, signals expanding monetization of active electrical cable technology. Management’s guidance for $335–345M in Q3 revenue—far exceeding Wall Street’s $247.6M estimate—cemented optimism. The stock’s intraday high of $213.80 (matching its 52-week high) reflects bullish sentiment around AI-driven connectivity demand.

Communication Equipment Sector Steadies as Credo Outperforms
The Communication Equipment sector, led by Cisco Systems (CSCO) with a 0.138% intraday gain, remains stable. Credo’s 14.3% move diverges sharply from sector trends, driven by its AI infrastructure focus rather than broader sector dynamics. While CSCO’s modest gains reflect steady demand for networking gear, Credo’s surge highlights its unique positioning in hyperscaler-driven connectivity.

Options and Technicals Signal High-Volatility Playbook for Credo Bulls
• 200-day average: $98.10 (far below current price)
• RSI: 50.48 (neutral)
• MACD: 2.21 (bullish divergence)
• Bollinger Bands: Price at $195.68, above upper band of $185.38

Credo’s technicals suggest a continuation of its bullish momentum. The stock’s 14.3% intraday gain and 52-week high breakout indicate strong short-term demand. Key resistance lies at $213.80 (52-week high), with support at $186.94 (intraday low).

Top Options Contracts:
1. CRDO20251212C190 (Call, $190 strike, 12/12 expiration)
• IV: 110.35% (high volatility)
• LVR: 11.22% (high leverage)
• Delta: 0.59 (moderate sensitivity)
• Theta: -1.02 (rapid time decay)
• Gamma: 0.0104 (moderate sensitivity to price moves)
• Turnover: 280,048 (high liquidity)
• Payoff at 5% upside: $15.46/share (max(0, 205.46 - 190))
This contract offers high leverage and liquidity, ideal for capitalizing on a breakout above $190.

2. CRDO20251212C195 (Call, $195 strike, 12/12 expiration)
• IV: 99.01% (high volatility)
• LVR: 14.54% (high leverage)
• Delta: 0.536 (moderate sensitivity)
• Theta: -0.943 (rapid time decay)
• Gamma: 0.0119 (strong sensitivity to price moves)
• Turnover: 160,258 (high liquidity)
• Payoff at 5% upside: $10.46/share (max(0, 205.46 - 195))
This contract balances leverage and liquidity, suitable for a continuation of the current rally.

Aggressive bulls should consider CRDO20251212C190 into a break above $190, while CRDO20251212C195 offers a tighter risk-reward profile for a pullback.

Backtest Credo Technology Stock Performance
I attempted to retrieve CRDO’s daily price history programmatically so we could identify every trading day since 2022 on which the stock jumped 14 %-plus intraday (or on a close-to-close basis) and then run an event back-test on those dates. However, the data-pull command returned a server-side error (“ get_asset_base_info …”), which means the price-history endpoint was unavailable.To move forward we have two options:1. Retry the data retrieval with an alternative query/key that the data source will accept (for example “daily_price”, “daily_adjusted_close”, or “price_ohlc”). 2. If you already have (or can supply) a list of CRDO’s ≥14 % up-days since 2022, we can use those dates directly and proceed to the event back-test immediately.Please let me know which route you prefer (or share the dates if you have them), and we’ll complete the performance analysis.

Bullish Momentum Unlocks Strategic Entry Points for Credo Bulls
Credo’s 14.3% surge is underpinned by record earnings, IP monetization, and AI infrastructure demand. The stock’s technicals and options liquidity suggest a continuation of its rally, with key levels at $190 and $213.80. Sector leader Cisco (CSCO) remains flat at 0.138%, underscoring Credo’s unique growth narrative. Investors should monitor the $190 support and $213.80 resistance for directional bias. Aggressive bulls may consider CRDO20251212C190 for a breakout trade.