Disclaimer: This is not financial or investment advice.
How to play AI growth with CRDO ( Credo )
What is Credo’s business – AI data centers require a lot of high speed data connectivity. Credo is a leader in that area. The company offers a variety of products, including optical devices and data networking chips, but its active electrical cables ( AECs ), are the biggest chunk of its business.
Growth outlook – The company has continued expanding its business with the largest cloud service providers helping Credo benefit from growing demand for AECs, placing the company on the trajectory for strong revenue growth and expanding margins in the coming years. J.P. Morgan analyst Joseph Cardoso initiated coverage on $CRDO with an Overweight rating and established a $165 stock target. The analyst predicts Credo will be able to grow its revenue at more than 50% a year and its earnings at more than 70% a year through 2028. Customers include Microsoft, Amazon.com, xAI, and Meta Platforms. Oracle and Google are potential future customers. “Given our expectation for solid improvement in FCF generation and an already healthy balance sheet, we would not rule out a greater appetite for capital allocation, which would represent upside to our outlook,” the analyst wrote. Last month, Credo shares rose after the company reported better-than-expected earnings results, citing strong demand from large technology companies.
About AECs – Credo invented the AEC, which is a copper-based cable used to attach AI servers to networking switches. AECs are more reliable and consume less power than optical cables and can be used for longer distances than traditional passive copper cables.
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Disclaimer: This is not financial or investment advice.
A growth name in cloud management and security – subscription is the long term growth model
Have you heard of Rubrik? The company engages in the provision of cloud data management solutions. Its solutions include backup and recovery, VM backup, Microsoft 365, ransom ware recovery, database backup, cloud solutions, and Polaris sonar. Rubrik products include data protection, data threat analytics, data security posture and cyber recovery.
Latest Q3 earnings report – the company just reported revenue of $350.2 million, up from $236.2 million a year prior and surpassing analysts’ expectations of $320.5 million. Revenue growth was driven by a jump in subscription revenue, which accounts for the vast majority of Rubrik’s business. Q3 annual recurring revenue from subscriptions grew 34% year-over-year to $1.35 billion. On an adjusted basis, Rubrik reported earnings of 10 cents a share vs the expectation of a loss of 17 cents a share on an adjusted basis.
Looking ahead – For Q4, Rubrik anticipates revenue between $341 million and $343 million. Analysts were expecting $325.3 million. The company now expects revenue for the full year of about $1.28 billion. The company had previously guided for revenue between $1.23 billion and $1.24 billion.
I like the company and the stock ( a lot ) for a long haul. My target is $130 within next 6 months.
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Energy sector is going to power the age of AI for the next few decades. As Melius-research puts is “much like Thomas Edison ushered in the era of electricity more than a century ago, artificial intelligence may be driving a new “Age of Electrification,” That’s an excellent summary. Energy companies are well positioned to power AI and will will be the biggest winners. The company likes, and I fully agree (and in fact I have been accumulating these name already) these names: CEG Constellation Energy, VST Vistra, NEE NextEra Energy, NRG NRG Energy, and TLN Talen Energy.
AI computing requires vast amounts of power. “The energy sector is therefore the “enabler” of the AI revolution” as Melius puts it. These companies are locking in years long power purchase agreements with various data centers. Data-center electricity demand growth is estimated to hit 219 gig watts in 2030, up from 82 gigawatts in 2025, Melius said.
Disclaimer: This is not financial or investment advice.
Amazon after Q3 Earnings
Amazon stock just hit a new record high. A summary of its earnings report –
Amazon stock hit a record close after reporting better-than-expected earnings results. Amazon stock is up only 12% so far this year, underperforming the 23% rise for the Nasdaq Composite.
For Q3, the company reported EPS of $1.95, compared to Wall Street’s consensus estimate of $1.57. Revenue came in at $180.2 billion, which was ahead of analysts’ expectations of $177.9 billion. AWS sales skyrocketed 20% to $33 billion, super-charged by healthy demand for AI training and Amazon’s homegrown Trainium chips which saw a stellar 150% jump in sales from the prior quarter. CEO Andy Jassy said AWS is gaining momentum with more companies shift their biggest workloads to Amazon’s cloud for its performance and reliability.
“We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity,” Amazon CEO Andy Jassy said in a press release. Jassy said the company has doubled AWS capacity measured by power from 2022 and is on track to double capacity again by 2027. The company now expects capital expenditures to come in at $125 billion for the full year, ahead of the current Wall Street forecast for $117.5 billion.
Analysts
$305 – J.P. Morgan ( “We believe overall sentiment on AWS will improve notably in coming months as the business accelerates growth”. They predict the rollout of Amazon’s next AI chip called Trainium 3 to boost AWS revenue next year)
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My attack plan is a to-do for myself based on my own extensive research. The plan includes PTs and SL for selected BULLISH stocks, assuming stable market (Nasdaq is within -.02% range) conditions. Geopolitical or macroeconomic eventsmay invalidate this plan. I may revise it on the morning of the 26th before the market opens. You may pick and choose these names based on your level of risks. Disclaimer: This is not financial or investment advice.
List of Bullish Stocks for Dec 2 Trading – my final list emerges in real-time about 15 minutes after the market opens. Join me at https://discord.com/invite/dPX53 to get the updates of what I end up trading on the day.
Stock Symbol
Notes (stable market = 0.2% range for Nasdaq)
Enter Only at or just Above
My 1st PT
Stop Loss Point
AMZN
In a stable market
235
238
BABA
In a stable market
164.7
168
CLS
In a stable market
326
336
DASH
In a stable market
208
212
MU
In a stable market
242
248
NVDA
In a stable market
182
132.5
SNOW
In a stable market
look for an entry around 255
MDB
In a stable market
look for an entry around 390
VRT
In a stable market
182
188
SHOP
In a stable market
152
154
150
WDC
In a stable market
164.6
168
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Disclaimer: This is not financial or investment advice.
Why Google, Broadcom, Alibaba stocks are up while Nvidia and AMD are down!
Here is the answer – initial read is that Gemini 3 is reportedly faster and performs with deeper reasoning than ChatGPT and is integrated with Google’s family of apps and data. It is also priced at similar levels to rival AI models. But more importantly the fact that Gemini was trained primarily on Google’s TPUs ( Broadcom is TPU’s partner ) as opposed to its rivals’ reliance on Nvidia and AMD chips, is a critical data point. TPUs aren’t as flexible as Nvidia’s GPUs, which can make them less usable in a market where hyperscalers are demanding the ability to reprogram their AI systems.
But TPUs are both cheaper to develop and use less power to run at full capacity. Similar story holds for Alibaba’ Qwen AI model (using their custom less expensive chips). And that fact is spooking the market in favor of pushing $GOOGL $AVGO $BABA and against $NVDA $AMD.
“Some investors are petrified that Alphabet will win the AI war due to huge improvements in its Gemini model and ongoing benefits from its custom TPU chip,” said Ben Reitzes, tech strategist at Melius Research.
More about my trading strategy and insights: https://avitrades.11conceptsllc.com/active-trading-strategy/
Please consider becoming a subscriber. You will get an exclusive access to my watchlists here and my private discord channel where I share my real-time trades with you to trade along with me. I spent considerable time/effort each day in compiling the best of the best trading strategies.
