Why Credo Technology Stock Plunged 20% Today

• Credo (CRDO) plunged 20% despite strong Q1 results • Revenue jumped 115% YoY to $479M, with $530M Q2 guidance • Top 3 customers drive 74% of sales, raising concentration risk Credo Technology (CRDO) dropped 20% Wednesday despite smashing Q1 estimates with $479M revenue (+115% YoY) and $1.20 EPS (+131% YoY). Q2 guidance of $530M also beat consensus. However, the stock's sky-high valuation and extreme customer concentration—top 3 clients represent 74% of revenue—triggered the sell-off. The beta is now 3.2 and the stock trades at 59x trailing earnings. While growth remains robust, the concentrated customer base and premium valuation create significant downside risk.