Credo Technology Group Holding LtdCRDO
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Credo reported strong Q4 earnings beat and raised guidance, driving stock surge.
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Credo Technology Group Holding Ltd
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Cisco Launches AI POD for Splunk to Capture Enterprise AI Spending
Cisco Systems introduced the Cisco AI POD for Splunk at the 2026 Splunk conference in Denver, a configuration that brings Splunk AI capabilities to customers running Splunk Enterprise in on-premises, private-cloud, and air-gapped environments by combining Cisco infrastructure with Nvidia accelerated computing. The move extends Cisco's push to capture more enterprise AI spending beyond hardware, and it comes alongside a multi-year agreement with AWS to co-develop Splunk-centered security products for AI-driven threats. Cisco took in $9.3 billion of AI infrastructure orders from hyperscalers in fiscal 2026, including $4 billion in the fourth quarter alone, and generated around $4 billion in AI infrastructure revenue during the year, a figure it expects to nearly double to $7.5 billion in fiscal 2027. The stress point is that infrastructure leads this growth and is exposed to competitive pricing and component cost inflation, while observability revenue grew just 6% in the fourth quarter, leaving open how quickly Cisco converts AI infrastructure into higher-value recurring software and security growth. Hedge fund positioning moved supportively before the Splunk announcement, with the number of funds holding Cisco rising to 101 in the second quarter from 97 in the first quarter and 77 in the fourth quarter, and short interest falling 5.77% from the prior reading to 55.5 million shares as of August 31.
Fortinet Fair Value Raised to US$163.13 as Analysts Lift Price Targets
Fortinet's modeled fair value has been reset from US$119.92 to US$163.13, according to Simply Wall St, as analysts lifted their price targets on strong demand. Several firms, including TD Cowen, BTIG, RBC Capital, Barclays, UBS, and Citi, raised their Fortinet price targets into a US$170 to US$215 range, citing strong Q2 results, billings and product trends, and AI-related demand for networking and security. Morgan Stanley upgraded Fortinet to Equal Weight from Underweight with a higher US$133 target, saying hardware demand tied to AI preparedness had been underestimated. On the bearish side, Wedbush and Wells Fargo flagged valuation as a key watchpoint, with Wedbush arguing the stock already reflects a best-case scenario, while HSBC and JPMorgan stayed cautious with Reduce and Underweight ratings respectively, HSBC carrying a US$102 target. The fair-value model's revenue growth assumption rose from 11.69% to 13.25%, its net profit margin from 27.17% to 29.57%, its future P/E from 36.45x to 45.46x, and its discount rate from 8.54% to 8.58%.
Amphenol AI Datacom Sales Surge 89% as CommScope Adds $1.2 Billion
Amphenol's IT datacom business, which represented 43% of the company's total sales in the second quarter of 2026, saw revenues surge 89% year over year and 63% organically, with management saying the AI revenue run rate has reached roughly $10.5-$11 billion. Management noted that virtually all of the 22% sequential IT datacom growth in the quarter came from AI-related products, as customers require more copper, optics and power for larger, more complex AI clusters. The company's acquisition of CommScope contributed more than $1.2 billion in sales in the quarter, with CommScope's IT datacom business nearly doubling year over year; management expects that market to account for just under half of CommScope's 2026 sales, compared with roughly one-third in 2025. Amphenol faces tough competition from TE Connectivity, whose Digital Data Networks sales rose 34% year over year in the third quarter of fiscal 2026 with bookings up more than 70% year to date, and from Marvell Technology, whose data-center revenues increased 46% year over year to $2.17 billion in the second quarter of fiscal 2027. Amphenol shares have risen 16% year to date, trailing the broader Zacks Computer and Technology sector's 17% gain, and trade at a forward 12-month price/earnings of 25.32X versus the sector's 20.38X, while the Zacks Consensus Estimate for earnings stands at 72 cents per share, up 5 cents over the past 30 days and implying 53.19% growth.