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

Credo Technology Group (CRDO) and Nova Limited (NVMI), two Zacks Rank #1 semiconductor stocks, are demonstrating significant growth and market outperformance. Credo, providing high-performance connectivity solutions for AI and 5G, projects an 86% sales increase and over 100% EPS growth in FY26, while Nova, specializing in metrology solutions, anticipates 28% sales and 26% EPS growth in FY25. Both companies have seen their stocks surge, with CRDO up 650% and NVMI up 200% over three years, supported by recent positive earnings estimate revisions, suggesting their rally, despite market premiums, could continue.

Analysis

Credo Technology Group (CRDO) and Nova Limited (NVMI) are presented as standout opportunities within the semiconductor sector, which itself is positioned in the top 35% of Zacks industries. Both companies exhibit compelling growth trajectories underpinned by strong fundamentals and positive analyst sentiment. Credo forecasts an 86% surge in sales for fiscal 2026 to $811.4 million and a greater than 100% increase in EPS to $1.48, driven by its connectivity solutions for AI and 5G. Nova anticipates a 28% top-line expansion and 26% EPS growth in its current fiscal year. This financial performance is mirrored in their stock appreciation, with CRDO gaining over 650% and NVMI over 200% in the last three years, substantially outperforming their industry's 190% return. The sustainability of this rally is supported by recent upward earnings estimate revisions; notably, Credo's FY26 and FY27 EPS estimates have been revised upward by over 30% in the last 60 days, while Nova's FY26 estimates have risen 3%. While their market premiums warrant attention, the strong positive revisions suggest these valuations may be justified.

Key Decisions for Investors

• Investors with a high-growth mandate should evaluate positions in Credo (CRDO) and Nova (NVMI), as both demonstrate exceptional, multi-year revenue and EPS growth forecasts that are strongly supported by positive analyst revisions.
• Given the significant stock rallies of over 650% for CRDO and 200% for NVMI over three years, it is crucial to monitor valuations closely, though the trend of upward EPS revisions provides a fundamental justification for their current premiums.
• Credo, with its more aggressive growth projections and substantial recent estimate revisions of over 30%, may offer higher upside potential, but potentially with commensurate volatility compared to Nova's more moderate but still robust growth profile.