We just put together a list of 10 Unstoppable Stocks to Buy in 2025. Today, let’s see how Credo Technology Group Holding Ltd (NASDAQ:CRDO) measures up against these top picks.
According to FactSet’s earnings update from January 24, 2025, the Q4 2024 earnings season for the S&P 500 is off to a strong start. Companies are reporting positive earnings surprises more than usual. Analysts expect earnings to grow by 11.3% in Q1 2025 and 11.6% in Q2 2025, with a projected annual growth of 14.8% for 2025.
UBS predicts that the S&P 500 could hit 6,600 by 2025. Even with potential tariffs causing some short-term swings, they believe steady U.S. economic growth and AI trends will offer solid support. Historically, when the Fed cut rates without triggering a recession, U.S. stocks enjoyed an average jump of 18% in the following year.
UBS also sees strong intentions for AI spending in this earnings season, which bodes well for tech stocks. Interestingly, growth isn’t limited to tech; other sectors are also expected to benefit, partly thanks to U.S. deregulation and tax cuts.
They believe that the U.S. market is less vulnerable to tariff issues compared to global markets. Sectors like technology, utilities, finance, and healthcare are seen as promising. The need for AI infrastructure is strong, and there could be supply constraints for essential semiconductor components in 2025. Additionally, the tech industry might see a rebound in PC and smartphone markets.
In utilities, growth in AI data centers is expected to drive up power demand and prices. Meanwhile, the financial sector could benefit from Fed rate cuts, and the healthcare sector might recover, boosted by higher spending and advancements in digital technology.
Our Methodology
To identify the 10 Unstoppable Stocks for 2025, we filtered companies with a market cap of at least $2 billion. We selected stocks that had increased more than 30% over the previous six months and with analysts predicting a similar upside. These stocks were then organized by their potential upside as of January 27. Hedge fund sentiment from Q3 2024 was also included.
At Insider Monkey, we focus on stocks that hedge funds invest in heavily. Research shows that mimicking top hedge fund choices can lead to better market performance. Our quarterly newsletter highlights 14 chosen stocks, which have achieved a 275% return since May 2014, outperforming its benchmark by 150 percentage points.
Is Credo Technology Group Holding Ltd (CRDO) the Unstoppable Stock to Buy in 2025?
An engineer testing an integrated circuit in a cleanroom.
Market Cap as of January 27: $9.84 billion
Return Over Past 6 Months: ~103.1%
Average Upside Potential: ~34.8%
Number of Hedge Fund Holders: 30
Credo Technology Group Holding Ltd (NASDAQ:CRDO) delivers high-speed connectivity solutions for both optical and electrical Ethernet use. Mizuho analyst Vijay Rakesh raised the price target for CRDO from $70 to $85, keeping an “Outperform” rating. The outlook for semiconductors and automotive tech in 2025 is encouraging, and there’s optimism for growth in AI and connectivity.
The rise in AI cluster usage has fueled CRDO’s recent performance. They specialize in creating power-efficient solutions for AI clusters, which is crucial as data centers aim to increase AI while cutting energy costs. As industries adopt AI technologies, CRDO’s focus on efficiency aligns well with market needs.
As AI demands grow, so too will the need for fast, efficient connectivity options. TimesSquare Capital Management recently shared insights in their Q2 2024 letter, highlighting CRDO’s impressive 51% rise. They noted solid quarterly results and how AI spending is a significant growth factor.
“Among the variety of tech companies, we focus on those providing critical systems and specialized components that enhance productivity. Credo Technology Group Holding Ltd (NASDAQ:CRDO) has seen exceptional growth, driven by AI spending.”
Overall, CRDO ranks 6th on our list of unstoppable stocks for 2025. While CRDO is a solid investment, we believe some undervalued AI stocks may offer even better returns in a shorter time. If you’re on the lookout for such a stock with promising potential, check out our report on the cheapest AI stock.
