Investment Funds Target Credo Technology Amid AI Data Center Boom

Two major investment firms identified Credo Technology Group Holding Ltd as a critical player in the expansion of AI data center infrastructure. Brown Capital Management added the semiconductor company to its Small Company Fund in the first quarter of 2026, noting that Credo holds an 80% market share in Active Electrical Cables. The firm projects annual revenue growth between 30% and 50% over the coming years and expects GAAP operating margins to climb to 29% in fiscal year 2026.

Carillon Tower Advisers also highlighted the company in its first-quarter 2026 investor letter for the Carillon Eagle Small Cap Growth Fund. While noting a 195.02% share increase over the past 52 weeks and a market capitalization of $50.72 billion, the fund acknowledged investor anxiety regarding competition and evolving data center architectures. However, the fund maintained that these replacement risks are unlikely to affect the business in the immediate to mid-term.

Both firms cited the aggressive spending of hyperscalers such as Amazon, Microsoft, and Meta as the primary driver for Credo's growth. This investment activity comes as Brown Capital Management's Small Company Fund faced a 19.78% decline in the first quarter, a drop the firm attributed to oil price spikes and market volatility linked to the Iran war.