Credo vs NVIDIA: Which AI Stock Reigns Supreme?
Credo Technology Group Holding Ltd (CRDO) and NVIDIA Corporation (NVDA) have both benefited from growth in the artificial intelligence ecosystem, but their recent earnings reports reveal differing levels of performance.
CRDO's revenue growth has been exceptional, reaching $479 million in its fiscal first quarter of 2027, up 114.7% year over year and 9.6% sequentially. Management expects revenues to come in at $525-$535 million in the fiscal second quarter of 2027, implying roughly 10.6% sequential growth from the previous quarter.
NVIDIA's total revenues reached $96.2 billion in its fiscal second quarter of 2027, up 106% year over year and 18% sequentially. The Data Center business was a key driver, with revenues rising 117% year over year and 18% sequentially to $89 billion.
Despite strong revenue growth, CRDO's non-GAAP net income jumped 140% year over year to $236.3 million in the fiscal first quarter, but its profitability still lags behind NVIDIA's, which boasts a 63.7% net profit margin compared to CRDO's 33.8%. NVIDIA also appears more attractively valued than CRDO, with a price-to-earnings ratio of 24.05 forward earnings multiple compared to CRDO's 27.03.