CRDO vs AAOI Stock Comparison: AI Score, Valuation, Performance and Upside
Credo is generally evaluated as a higher-margin, more established AI-infrastructure connectivity supplier, while Applied Optoelectronics is viewed as a higher-beta turnaround story riding the same datacenter transceiver upgrade cycle. The choice often comes down to whether an investor prefers Credo's steadier execution and premium valuation or AAOI's higher operating leverage and lower starting valuation multiple.
This comparison is best used to weigh a proven, premium-priced AI connectivity supplier against a lower-priced, higher-risk optical component turnaround candidate riding the same secular data center buildout.
CRDO holds the edge across 4 of 5 key metrics in this comparison. AAOI has delivered stronger 1-year price return (+154.11% vs +35.83%), though CRDO has the better forward P/E setup (17.21x vs 22.89x for AAOI). CRDO leads on both revenue growth (157.00%) and operating margin (35.66%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for CRDO (+67.71%) than for AAOI (+55.09%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want direct exposure to AI data center interconnect growth
- Are comfortable paying a premium multiple for demonstrated execution
- Believe hyperscaler capex will stay elevated for multiple years
- Prefer a company with diversifying, though still concentrated, customer relationships
- Want more torque to a datacenter transceiver upgrade cycle at a lower valuation
- Can tolerate higher earnings and margin volatility
- Believe the company's manufacturing scale-up will continue improving execution
- Are willing to accept smaller-cap liquidity and balance sheet risk
| Metric | CRDO | AAOI |
|---|---|---|
| AI scorei | 61.0 | 55.8 |
| AI ranki | #135 | #221 |
| Latest closei | $178.50 | $83.73 |
| 1M returni | +18.69% | -12.13% |
| 3M returni | -14.17% | -16.47% |
| 6M returni | +12.31% | -46.78% |
| 1Y returni | +35.83% | +154.11% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | CRDO | AAOI |
|---|---|---|
| 1Y ago | $13.58K (+35.8%) started 2025-10-15 | $25.41K (+154.1%) started 2025-10-15 |
| 5Y ago | $153.22K (+1432.2%) started 2022-01-27 | $115.97K (+1059.7%) started 2021-10-15 |
| 10Y ago | $153.22K (+1432.2%) started 2022-01-27 | $41.8K (+318.0%) started 2016-10-17 |
Hypothetical — past performance does not guarantee future results.
| Metric | CRDO | AAOI |
|---|---|---|
| Market capi | $31.13B | $8.95B |
| Trailing P/Ei | 66.26 | N/A |
| Forward P/Ei | 17.21 | 22.89 |
| Price/Salesi | N/A | N/A |
| EV/Revenuei | 27.80 | 14.62 |
| Analyst targeti | $277.81 | $163.40 |
| Target upsidei | +67.71% | +55.09% |
| Metric | CRDO | AAOI |
|---|---|---|
| Revenue growthi | 157.00% | 86.40% |
| Earnings growthi | 343.20% | N/A |
| EPS growthi | +343.20% | N/A |
| FCF margini | +18.79% | -148.84% |
| Operating margini | 35.66% | -12.88% |
| Profit margini | 35.37% | -9.57% |
| ROIC proxyi | 34.41% | -5.45% |
| Return on equityi | 34.41% | -5.45% |
| Dividend yieldi | N/A | N/A |
| Payout ratioi | 0.00% | 0.00% |
| Dividend growth streaki | N/A | N/A |
| Betai | 3.23 | 3.78 |
| Debt/equityi | 1.23 | 17.99 |
| Current ratioi | 10.15 | 2.78 |
| Quick ratioi | 8.51 | 1.90 |
Over the past year, CRDO and AAOI have moved weakly in the same direction (correlation of 0.40), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | CRDO | AAOI |
|---|---|---|---|
| 1Y | Growthi | +35.83% | +154.11% |
| CAGRi | +35.86% | +154.27% | |
| Volatilityi | 94.95% | 143.66% | |
| Sharpe ratioi | 0.75 | 1.30 | |
| Sortino ratioi | 1.12 | 2.23 | |
| Max drawdowni | 53.59% | 65.70% | |
| Current drawdowni | 41.00% | 62.47% | |
| Avg drawdowni | 23.11% | 25.31% | |
| Ulcer Indexi | 27.44% | 32.00% | |
| Max daily dropi | 20.04% | 17.17% | |
| Max wkly dropi | 31.66% | 30.76% | |
| 5Y | Growthi | +1432.19% | +1059.70% |
| CAGRi | +78.41% | +63.27% | |
| Volatilityi | 82.89% | 123.11% | |
| Sharpe ratioi | 1.07 | 0.95 | |
| Sortino ratioi | 1.62 | 1.59 | |
| Max drawdowni | 62.04% | 82.64% | |
| Current drawdowni | 41.00% | 62.47% | |
| Avg drawdowni | 19.91% | 44.99% | |
| Ulcer Indexi | 25.59% | 50.75% | |
| Max daily dropi | 46.80% | 32.18% | |
| Max wkly dropi | 51.50% | 36.86% | |
| 10Y | Growthi | +1432.19% | +318.02% |
| CAGRi | +78.41% | +15.39% | |
| Volatilityi | 82.89% | 100.12% | |
| Sharpe ratioi | 1.07 | 0.58 | |
| Sortino ratioi | 1.62 | 0.93 | |
| Max drawdowni | 62.04% | 98.49% | |
| Current drawdowni | 41.00% | 62.47% | |
| Avg drawdowni | 19.91% | 74.26% | |
| Ulcer Indexi | 25.59% | 79.09% | |
| Max daily dropi | 46.80% | 34.07% | |
| Max wkly dropi | 51.50% | 37.17% |
| Category | CRDO | AAOI |
|---|---|---|
| Company | Credo Technology Group | Applied Optoelectronics |
| Sector | Technology | Technology |
| Industry | Semiconductors | Communication Equipment |
| Core business | Credo designs high-speed connectivity chips, including active electrical cables and optical DSPs, used to move data inside AI and hyperscale data centers. | Applied Optoelectronics manufactures optical components and transceivers used in data center, cable broadband, and telecom networks. |
| Investor focus | Investors watch hyperscaler capex cycles, AEC (active electrical cable) attach rates, and Credo's exposure to a small number of large cloud customers. | Investors track datacenter transceiver order wins, gross margin recovery, and the company's ramp of 800G and 1.6T products for AI networking. |
- Fast-growing AEC franchise tied directly to AI server buildouts
- High gross margins relative to typical semiconductor peers
- Deepening relationships with hyperscale customers on next-gen platforms
- Vertically integrated manufacturing from laser chips to finished transceivers
- Improving datacenter segment mix as legacy cable/telecom exposure shrinks
- Multiple hyperscaler qualification wins supporting a multi-year growth runway
- Revenue concentration in a handful of large customers
- Valuation already prices in years of continued hypergrowth
- Exposure to shifts in data center architecture that could favor alternative interconnects
- History of margin volatility and execution missteps
- Smaller scale and balance sheet than larger optical peers
- Customer concentration risk in datacenter transceiver contracts
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