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

Credo Technology Group (CRDO) and Nova Limited (NVMI), two semiconductor firms with Zacks #1 (Strong Buy) ratings, are demonstrating significant financial and market outperformance. Credo projects an 86% surge in FY26 sales to $811.4 million and over 100% EPS growth to $1.48, with continued double-digit increases into FY27, fueled by demand in 5G and AI. Nova anticipates 28% sales expansion and 26% EPS growth in FY25, extending into FY26. Both stocks have dramatically outperformed broader indexes, with CRDO up over 650% and NVMI over 200% in three years, supported by recent positive earnings estimate revisions that suggest their rallies may continue.

Analysis

Credo Technology Group (CRDO) and Nova Limited (NVMI) are presented as high-momentum standouts within the favorably ranked Zacks Electronics-Semiconductors Industry. The analysis highlights exceptionally strong forward-looking fundamentals for Credo, with Zacks estimates projecting an 86% surge in fiscal 2026 sales and a greater than 100% increase in EPS. This outlook is supported by significant upward earnings estimate revisions, with FY26 and FY27 EPS estimates rising over 30% in the last 60 days, suggesting strong analyst conviction. Nova also exhibits a robust growth profile, with forecasts for 28% sales and 26% EPS growth in its current fiscal year, though its earnings estimate revisions are more modest at 3% for FY26. Both companies have demonstrated dramatic market outperformance, with CRDO stock gaining over 650% and NVMI over 200% in the last three years. The core thesis presented is that while valuations are elevated, the trend of positive earnings revisions provides fundamental justification for their premium and signals potential for continued stock appreciation.

Key Decisions for Investors

• Given the substantial growth forecasts and positive earnings revisions, investors with a high-risk tolerance focused on the semiconductor sector could consider these stocks as strong growth plays.
• Investors should differentiate between the two firms, viewing Credo (CRDO) as a hyper-growth opportunity driven by AI and 5G catalysts, while Nova (NVMI) represents a more stable, yet still strong, growth investment tied to semiconductor manufacturing processes.
• Despite the bullish outlook, the significant stock price appreciation warrants a cautious approach to valuation; continued positive earnings revisions should be monitored closely as they are the primary justification for sustaining current price levels and supporting further gains.