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Stock Track | Credo Technology Group Plummets 33.60% Amid Concerns Over China's DeepSeek AI Progress

Stock Track01-28

Credo Technology Group Holding Ltd (CRDO), a provider of high-speed semiconductor solutions, experienced a significant stock plummet of 33.60% during Monday's trading session. This sharp decline in the company's shares came in the wake of China's launch of the DeepSeek AI model, which raised concerns about US dominance in the artificial intelligence (AI) space and impacted US semiconductor stocks.

The news of China's progress in AI technology, despite facing restrictions on importing state-of-the-art semiconductor equipment, has sent shockwaves through the US tech industry. Investors are scrambling to assess the implications of this development, leading to a widespread sell-off in semiconductor stocks, including Credo Technology Group.

While Credo Technology Group is considered an undervalued stock with strong growth potential in the AI industry, the market's reaction to the DeepSeek AI news has temporarily dampened sentiment towards the company. However, analysts remain optimistic about Credo's long-term prospects, citing its expected earnings growth, improving margins, and a potential trillion-dollar total addressable market in the next six years.

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