2 Highly Ranked Semiconductor Stocks to Buy Now: CRDO, NVMI

With semiconductors being critical to electronic components, Credo Technology Group CRDO and Nova Limited NVMI are two standouts in the tech sector at the moment.

Sporting a Zacks Rank #1 (Strong Buy), respectively, it’s noteworthy that Credo and Nova’s Zacks Electronics-Semiconductors Industry is currently in the top 35% of over 240 Zacks industries.

Benefiting from their strong business environment, Credo is a provider of high-performance connectivity solutions, with Nova providing metrology solutions for advanced process control used in semiconductor manufacturing.

Credo & Nova’s Attractive Growth Trajectories

Based on Zacks' estimates, Credo’s total sales are expected to soar 86% in its current fiscal year 2026 to $811.4 million from $436.77 million in FY25. Plus, Credo’s FY27 sales are projected to pop another 21% to $987.2 million. On the bottom line, Credo’s annual earnings are slated to skyrocket over 100% in FY26 to $1.48 per share compared to EPS of $0.70 in FY25. More intriguing, FY27 EPS is forecasted to spike another 22% to $1.80.

* Notably, Credo’s connectivity solutions are compatible with 5G carriers, enterprise and hyperscale networking, among other artificial intelligence endeavors, with CRDO among the top 20 most searched for stocks on Zacks.com.

As for Nova, its top line is expected to expand 28% this year, with total sales projected to climb another 7% in FY26 to $923.4 million. Even better, Nova is expected to post 26% EPS growth in FY25, with annual earnings projected to rise another 10% next year to $9.33 per share.

Credo & Nova's Blazing Stock Performance

Correlating with their appealing growth trajectories, Credo stock is up nearly +40% year to date, with Nova shares sitting on gains of +43%.

Continuing their blazing stock performance, Credo stock has now skyrocketed over +650% in the last three years, with Nova shares spiking more than +200% to impressively outperform the broader indexes and lead their Zacks Electronics-Semiconductors Market’s stellar return of +190%.

Positive EPS Revisions

Suggesting there could be more upside in these top-performing tech stocks is the trend of rising earnings estimate revisions.

This is especially the case for Credo as its FY26 and FY27 EPS estimates have soared over 30% in the last 60 days.

Turning to Nova, its FY25 EPS estimates are slightly up in the last two months, with FY26 EPS estimates rising 3%.

Bottom Line

Credo Technology Group and Nova Limited are two of the more intriguing growth stocks to consider as standouts in the tech sector. While monitoring their valuations will be important, the trend of positive EPS revisions has started to justify their premiums to the broader market and suggests the stellar rally in CRDO and NVMI stock could continue.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research