Sitting at the center of the AI data center boom, Credo Technology Group (CRDO – Free Report) ) and Vertiv (VRT – Free Report) ) are two intriguing tech stocks to consider at the moment.
Notably, Credo sells the high-speed connectivity components needed to move AI data efficiently, while Vertiv sells the power and cooling systems that keep AI data centers running.
Their products have become essential bottleneck-breakers in the AI supply chain, making Credo and Vertiv stock two of the market’s top performers over the last three years, with eye-catching gains of over 1,000%, respectively.
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CRDO is a Top Buy the Dip Target
Making the case for being in oversold territory, Credo’s stock has now fallen 30% in 2026 to around $100 a share amid broader market volatility.
Making CRDO one of the most appealing buy the dip targets is that the market may be underestimating what has still been massive demand for high-speed connectivity components in AI Data Centers.
AI workloads require extremely high-bandwidth and low-power interconnects, which Credo specializes in as a provider of active electrical cables (AECs), high-speed SerDes (Serializer/Deserializer chip technology), and optical-interconnect-related components.
These components are critical for connecting GPUs inside AI clusters, especially when training large language models (LLMs). In other words, as GPU counts per cluster rise, Credo’s addressable market expands.
The Rally in VRT Could Continue
Dominating the massive power and cooling needs of AI data centers, Vertiv’s stock has spiked another 60% this year despite pulling back 7% in Thursday morning’s trading session after hitting an all-time high of $282 a share yesterday.
The pullback could start to present a more appealing opportunity as well amid soaring demand for Vertiv’s liquid cooling systems. To that point, traditional air cooling can’t handle GPU-dense racks as AI servers consume 3-5X more power than traditional servers.
Furthermore, Vertiv’s reach also extends to providing power distribution units, uninterruptible power supplies (UPS), and thermal management systems. As AI data centers scale, Vertiv’s products become unavoidable.
Tracking Credo & Vertiv’s Explosive Growth
Based on Zacks estimates, Credo’s annual sales are expected to soar 204% in fiscal 2026 to $1.33 billion from $436.77 million last year. Next year, Credo’s annual sales are projected to spike another 52% to $2.02 billion, reflecting what would be a 1,800% leap from sales of $106 million in 2022 when the company went public.
More impressively, FY26 EPS projections of $3.30 would reflect 371% growth from earnings of $0.70 per share last year. Credo’s annual earnings are projected to increase another 39% in FY27 to $4.60 per share.
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Pivoting to Vertiv, its top line is projected to expand 34% this year to $13.68 billion from $10.23 billion in 2025. Plus, Vertiv’s annual sales are forecasted to increase another 24% in FY27 to $17.02 billion, and nearly quadrupling from $4.29 billion in 2018, its IPO year.
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Fair P/E Valuations & Rising EPS Revisions
Considering their explosive growth and massive earnings potential, Credo and Vertiv stock are trading at somewhat reasonable forward P/E multiples of 31X and 44X, respectively.
Credo especially stands out as CRDO doesn’t trade at a far stretch to the benchmark S&P 500’s 22X and is beneath its Zacks Electronics-Semiconductors industry average of 36X.
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Offering further support is that EPS revisions are nicely up for these AI data center stocks, with Credo tipping the scales in this regard as well.
In the last 60 days, Credo’s FY26 EPS estimates have spiked 19%, with FY27 EPS estimates surging 28%.
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Similarly, Vertiv’s FY26 EPS estimates are up 17% over the last two months, with FY27 EPS estimates spiking 25%.
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Bottom Line
Plain and simple, it’s hard to overlook Credo Technology Group and Vertiv’s increasing importance to AI infrastructure. Keeping this in mind, Credo stock sports a Zacks Rank #1 (Strong Buy) with Vertiv sporting a Zacks Rank #2 (Buy).
