CRDO vs FN Stock Comparison: AI Score, Valuation, Performance and Upside
Credo is a fabless chip designer capturing high margins on proprietary AI interconnect silicon, while Fabrinet is a contract manufacturer that profits from volume and operational execution across the broader optical supply chain. Investors typically choose between Credo's higher-margin, higher-multiple growth profile and Fabrinet's steadier, lower-margin but more diversified manufacturing business.
This pairing is useful for weighing a specialized, high-margin AI chip designer against a diversified, lower-margin manufacturing partner that benefits from the same optical networking upgrade cycle.
CRDO holds the edge across 3 of 5 key metrics in this comparison. CRDO has delivered stronger 1-year price return (+83.81% vs +24.64%), though FN has the better forward P/E setup (18.95x vs 24.76x for CRDO). 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 FN (+77.78%) than for CRDO (+25.22%).
- Want exposure to proprietary, high-margin AI interconnect silicon
- Are comfortable with concentrated customer exposure
- Believe cable- and DSP-based interconnects will keep gaining share
- Accept a premium valuation multiple
- Prefer a more diversified manufacturing exposure to optical networking growth
- Value consistent profitability over hypergrowth
- Are comfortable with lower gross margins typical of contract manufacturing
- Want exposure to multiple optical component customers rather than one product line
| Metric | CRDO | FN |
|---|---|---|
| AI score | 63.6 | 59.7 |
| AI rank | #94 | #151 |
| Latest close | $226.19 | $412.93 |
| 1M return | +9.28% | -5.16% |
| 6M return | +101.47% | -24.32% |
| 1Y return | +83.81% | +24.64% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | CRDO | FN |
|---|---|---|
| 1Y ago | $18.2K (+82.0%) started 2025-09-02 | $12.3K (+23.0%) started 2025-09-02 |
| 5Y ago | $194.15K (+1841.5%) started 2022-01-27 | $40.08K (+300.8%) started 2021-08-31 |
| 10Y ago | $194.15K (+1841.5%) started 2022-01-27 | $106.37K (+963.7%) started 2016-08-31 |
Hypothetical — past performance does not guarantee future results.
| Metric | CRDO | FN |
|---|---|---|
| Market cap | $42.51B | $14.8B |
| Trailing P/E | 90.12 | 31.64 |
| Forward P/E | 24.76 | 18.95 |
| Price/Sales | 31.84 | 3.19 |
| EV/Revenue | 31.45 | 3.01 |
| Analyst target | $283.23 | $734.11 |
| Target upside | +25.22% | +77.78% |
| Metric | CRDO | FN |
|---|---|---|
| Revenue growth | 157.00% | 44.60% |
| Earnings growth | 343.20% | 58.10% |
| EPS growth | +343.20% | +58.10% |
| FCF margin | +18.79% | -1.25% |
| Operating margin | 35.66% | 10.23% |
| Profit margin | 35.37% | 10.19% |
| ROIC proxy | 34.41% | 21.33% |
| Return on equity | 34.41% | 21.33% |
| Dividend yield | 0.00% | 0.00% |
| Beta | 3.23 | 1.22 |
| Debt/equity | 1.23 | 0.16 |
| Current ratio | 10.15 | 2.25 |
| Quick ratio | 8.51 | 1.35 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | CRDO | FN |
|---|---|---|---|
| 1Y | Growth | +82.01% | +23.01% |
| CAGR | +82.69% | +23.16% | |
| Sharpe ratio | 1.06 | 0.60 | |
| Max drawdown | 53.59% | 44.68% | |
| Max daily drop | 14.81% | 19.38% | |
| Max wkly drop | 25.66% | 29.64% | |
| 5Y | Growth | +1841.55% | +300.83% |
| CAGR | +90.79% | +32.01% | |
| Sharpe ratio | 1.15 | 0.70 | |
| Max drawdown | 62.04% | 44.68% | |
| Max daily drop | 46.80% | 21.91% | |
| Max wkly drop | 51.50% | 29.64% | |
| 10Y | Growth | +1841.55% | +963.70% |
| CAGR | +90.79% | +26.68% | |
| Sharpe ratio | 1.15 | 0.64 | |
| Max drawdown | 62.04% | 51.11% | |
| Max daily drop | 46.80% | 21.91% | |
| Max wkly drop | 51.50% | 29.64% |
| Category | CRDO | FN |
|---|---|---|
| Company | Credo Technology Group | Fabrinet |
| Sector | Semiconductors | Electronic Manufacturing Services |
| Industry | N/A | N/A |
| 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. | Fabrinet provides advanced optical and electro-mechanical manufacturing services, producing optical transceivers and components for networking and datacenter customers. |
| Investor focus | Investors watch hyperscaler capex cycles, AEC attach rates, and Credo's exposure to a concentrated set of large cloud customers. | Investors track Fabrinet's datacom revenue growth, its relationship with key optical customers, and capacity expansion to support 800G/1.6T transceiver demand. |
- Fabless model with high gross margins
- Direct exposure to AI server interconnect growth
- Expanding product roadmap beyond cables into optical DSPs
- Long-standing manufacturing partnerships with leading optical component companies
- Diversified end markets spanning telecom, datacom, and non-optical products
- Consistent profitability and disciplined capital allocation
- Customer concentration among a few hyperscalers
- Premium valuation vulnerable to any growth deceleration
- Competitive intensity in the connectivity chip market
- Revenue tied closely to a small number of large optical customers
- Lower gross margins typical of a contract manufacturer
- Currency and geographic concentration risk from Thailand-based operations
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