Cramer: Credo Technology still a winner, but Marvell is better

Jim Cramer got a question on Mad Money’s Lightning Round that required a careful answer. Dave in Illinois called in about Credo Technology Group (NASDAQ:CRDO), noting that Cramer had declared it “a winner” back in December while flagging customer concentration and insider selling concerns. Dave wanted to know if the thesis still held.

Cramer’s response was nuanced: “I think it is [still a winner]. I just like the others better, Dave. And you know, when I speak that way, you know that I like — there’s like, you know, lots of stuff within the data center, including Marvell, that I think is better than Credo.”

That’s not a sell call. That’s a ranking. And the distinction matters.

Credo’s Numbers Are Genuinely Impressive

Credo just posted a blowout quarter. Q3 FY2026 revenue hit $407 million, up 201.5% year over year, beating estimates by 5%. Non-GAAP EPS came in at $1.07, topping the $0.94 consensus by nearly 14%. Operating margins hit 49.6%, which is exceptional for a semiconductor company still in hypergrowth mode.

CEO Bill Brennan put it plainly: “In the third quarter Credo once again delivered record results with revenue of $407.0 million, an increase of more than 50% sequentially and 200% year over year.”

The company also announced three new multi-billion dollar TAM expansions: ZeroFlap optics, Active Line Cards, and OmniConnect memory solutions. Forward guidance of $425 million to $435 million for Q4 keeps the momentum intact.

But the stock is down roughly 19% year to date, even after a 13% bounce in the past week. That pullback partly reflects the insider selling that Cramer flagged in December. The CTO alone sold hundreds of thousands of shares between December 2025 and late January 2026, with the CEO and CFO also active sellers at prices well above current levels. These may be pre-planned 10b5-1 programs, but the volume is hard to ignore.

Why Marvell Ranks Higher

Marvell Technology (NASDAQ:MRVL) operates at a different scale entirely. Q3 FY2026 revenue reached $2.075 billion, up 37% year over year, with data center contributing $1.52 billion of that total. Full-year FY2026 growth is forecast to exceed 40%.

The Celestial AI acquisition signals where Marvell is heading: deeper into optical interconnect for AI data centers. Murphy framed it directly: “This acquisition further strengthens Marvell’s position at the forefront of one of the fastest-growing opportunities in AI datacenter infrastructure.”

Marvell also trades at a more reasonable valuation. Its forward P/E sits around 24x versus Credo’s 25x forward, despite Marvell’s larger revenue base, broader customer diversification across custom silicon, and 6.5% gain year to date while Credo has struggled.

Credo is a real business with real momentum. But Cramer’s ranking reflects a preference for Marvell’s broader diversification, cleaner insider activity picture, and a management team actively sharpening its focus through the Celestial AI acquisition.