Credo and Marvell: Which Chip Stock Offers the Better Combination of Growth and Value?
Credo (CRDO) and Marvell (MRVL) are two chip stocks that investors have been searching for, but which one is the better buy? Credo specializes in high-speed connections that help AI infrastructure operate effectively. Its products include active electrical cables, optical products, and retimers that keep large AI systems communicating reliably.
Credo's growth has been exceptional, with Q1 revenue soaring 115% year over year to $479 million and adjusted earnings jumping 131% to $1.20 per share. Its adjusted gross margin reached an impressive 68%, highlighting the profitability of Credo's connectivity portfolio.
The Zacks Consensus Estimate calls for Credo's current fiscal 2027 revenue to rise 87% to $2.5 billion, with full-year EPS expected to soar 80% YoY to $6.23. Fiscal 2028 estimates point to another substantial expansion, with revenue projected to approach $3.74 billion and EPS reaching $9.30.
Marvell offers a wider range of AI infrastructure products, including custom-designed AI chips, optical-connectivity components, and Ethernet-switching silicon. Its five-year collaboration with Amazon's AWS spans custom AI products and multiple networking technologies.