Credo Technology (CRDO) Slashes 6.6% on AI Bubble Worries

We recently published 10 Stocks With Massive Losses; AI Firms Not Spared. Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is one of the worst performers on Friday.

Credo Technology declined by 6.65 percent on Friday to end at $123.06 apiece as investors unloaded portfolios in AI stocks amid continued caution over a potential AI bubble.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) dropped alongside its AI counterparts, namely Oracle Corp. and Nebius Group, as warnings about an AI bubble lingered among investors.

It can be recalled that a bubble occurred in the 90s, significantly dragging the tech-heavy Nasdaq after investors heavily poured funds into technology firms that went unsustainable during the period.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO), a company riding the AI wave, is especially exposed to such risks, particularly if returns on investments fail to materialize, as demand for cloud services and high-performance computing could decline and thus lead to underutilized AI infrastructures.

While we acknowledge the potential of CRDO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.