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Credo vs. NVIDIA After Earnings: Which AI Stock Should You Buy Now?
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Key Takeaways
Credo's Q1 revenues surged 114.7%, while fiscal Q2 revenues are projected at $525-$535 million.
NVIDIA's Data Center revenues rose 117% to $89 billion, driving 106% growth in total revenues.
NVIDIA's 63.7% net margin and 24.05 forward P/E compare with Credo's 33.8% and 27.03.
Both Credo Technology Group Holding Ltd (CRDO - Free Report) and NVIDIA Corporation (NVDA - Free Report) have benefited from growth across different layers of the artificial intelligence (AI) ecosystem and recently delivered impressive results. Let’s thus compare their growth prospects and fundamentals to determine which stock offers a more compelling buying opportunity right now.
Credo’s Growth Accelerates on Solid AI Infrastructure Demand
Credo’s revenue growth has been exceptional of late, with revenues reaching $479 million in the fiscal first quarter of 2027, up 114.7% year over year and 9.6% sequentially, according to the company’s Sept. 1 press release.
Management further expects revenues to come in at $525-$535 million in the fiscal second quarter of 2027, which, from the midpoint, implies roughly 10.6% sequential growth from the fiscal first quarter. This solid sequential revenue growth indicates that demand for Credo’s connectivity solutions remains strong amid a rapid increase in AI infrastructure investment.
Credo’s non-GAAP net income jumped 140% year over year to $236.3 million in the fiscal first quarter. Credo’s profitability strengthened as the company expanded its product portfolio to meet growing demand for AI infrastructure. With earnings growing faster than revenues, Credo is becoming more profitable as sales increase.
NVIDIA’s Strong Growth and AI Leadership Continue
According to NVIDIA’s Aug. 26 press release, the company’s total revenues reached $96.2 billion in the fiscal second quarter of 2027, up 106% year over year and 18% sequentially. The Data Center business remained the key growth driver, with revenues rising 117% year over year and 18% sequentially to $89 billion.
Operating income remains strong, allowing NVIDIA to translate strong revenue growth into even stronger earnings growth. The company’s non-GAAP gross margin rose to 75% in the fiscal second quarter from 72.5% a year earlier.
Looking ahead, NVIDIA expects profitability to remain strong and projects revenues to reach $108 billion, plus or minus 2%, in the fiscal third quarter of 2027, up 12% sequentially from the midpoint. Meanwhile, the cutting-edge Vera Rubin platform is already in full production, positioning NVIDIA to capitalize on the next wave of AI infrastructure spending.
Credo or NVIDIA: Which AI Stock Is a Better Buy After Earnings?
As reflected in their latest quarterly results, both Credo and NVIDIA delivered strong revenue growth and solid earnings, driven by robust demand for AI infrastructure. But even though Credo’s growth rate is impressive, in comparison to NVIDIA’s growth, scale, and profitability, Credo certainly falls short.
Credo is currently capitalizing on the AI infrastructure growth primarily through connectivity solutions. In contrast, NVIDIA has exposure to compute, networking and software as part of the broader AI infrastructure buildout, thereby lowering its concentration risk.
Moreover, NVIDIA’s 63.7% net profit margin, compared with Credo’s 33.8%, highlights its greater efficiency in converting revenues into bottom-line profits.
Image Source: Zacks Investment Research
Therefore, NVIDIA remains a stronger investment option over Credo, banking on superior scale, profitability, and diversified AI exposure. Additionally, NVIDIA appears more attractively valued than Credo. Per the price-to-earnings ratio, NVDA trades at a 24.05 forward earnings multiple compared with CRDO’s 27.03 forward earnings multiple.
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Credo vs. NVIDIA After Earnings: Which AI Stock Should You Buy Now?
Key Takeaways
Both Credo Technology Group Holding Ltd (CRDO - Free Report) and NVIDIA Corporation (NVDA - Free Report) have benefited from growth across different layers of the artificial intelligence (AI) ecosystem and recently delivered impressive results. Let’s thus compare their growth prospects and fundamentals to determine which stock offers a more compelling buying opportunity right now.
Credo’s Growth Accelerates on Solid AI Infrastructure Demand
Credo’s revenue growth has been exceptional of late, with revenues reaching $479 million in the fiscal first quarter of 2027, up 114.7% year over year and 9.6% sequentially, according to the company’s Sept. 1 press release.
Management further expects revenues to come in at $525-$535 million in the fiscal second quarter of 2027, which, from the midpoint, implies roughly 10.6% sequential growth from the fiscal first quarter. This solid sequential revenue growth indicates that demand for Credo’s connectivity solutions remains strong amid a rapid increase in AI infrastructure investment.
Credo’s non-GAAP net income jumped 140% year over year to $236.3 million in the fiscal first quarter. Credo’s profitability strengthened as the company expanded its product portfolio to meet growing demand for AI infrastructure. With earnings growing faster than revenues, Credo is becoming more profitable as sales increase.
NVIDIA’s Strong Growth and AI Leadership Continue
According to NVIDIA’s Aug. 26 press release, the company’s total revenues reached $96.2 billion in the fiscal second quarter of 2027, up 106% year over year and 18% sequentially. The Data Center business remained the key growth driver, with revenues rising 117% year over year and 18% sequentially to $89 billion.
Operating income remains strong, allowing NVIDIA to translate strong revenue growth into even stronger earnings growth. The company’s non-GAAP gross margin rose to 75% in the fiscal second quarter from 72.5% a year earlier.
Looking ahead, NVIDIA expects profitability to remain strong and projects revenues to reach $108 billion, plus or minus 2%, in the fiscal third quarter of 2027, up 12% sequentially from the midpoint. Meanwhile, the cutting-edge Vera Rubin platform is already in full production, positioning NVIDIA to capitalize on the next wave of AI infrastructure spending.
Credo or NVIDIA: Which AI Stock Is a Better Buy After Earnings?
As reflected in their latest quarterly results, both Credo and NVIDIA delivered strong revenue growth and solid earnings, driven by robust demand for AI infrastructure. But even though Credo’s growth rate is impressive, in comparison to NVIDIA’s growth, scale, and profitability, Credo certainly falls short.
Credo is currently capitalizing on the AI infrastructure growth primarily through connectivity solutions. In contrast, NVIDIA has exposure to compute, networking and software as part of the broader AI infrastructure buildout, thereby lowering its concentration risk.
Moreover, NVIDIA’s 63.7% net profit margin, compared with Credo’s 33.8%, highlights its greater efficiency in converting revenues into bottom-line profits.
Image Source: Zacks Investment Research
Therefore, NVIDIA remains a stronger investment option over Credo, banking on superior scale, profitability, and diversified AI exposure. Additionally, NVIDIA appears more attractively valued than Credo. Per the price-to-earnings ratio, NVDA trades at a 24.05 forward earnings multiple compared with CRDO’s 27.03 forward earnings multiple.
Image Source: Zacks Investment Research
NVIDIA presently has a Zacks Rank #1 (Strong Buy), while Credo has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 stocks here.