Under-the-Radar Chip Stocks CRDO and ALAB: Growth Prospects & Risk Analysis

This analysis is based on a MarketWatch article [1] highlighting CRDO and ALAB as under-the-radar chip stocks with 2-year growth prospects. Internal data [0] shows CRDO closed at $133.49 (-0.92% 1-day) and ALAB at $141.80 (+1.80% 1-day) on the article’s release date. CRDO’s YTD growth (+88.2%) and 1-year returns (+191.21%) are exceptional, while ALAB’s YTD performance is muted (+5.33%) with a 3-month decline (-20.82%) [2][3]. Financial metrics include CRDO’s P/E (~183x) and net margin (~20.85%), ALAB’s P/E (~119x) and net margin (~27.50%) [4][5].

• Both stocks benefit from AI infrastructure demand but face valuation headwinds.
• CRDO’s strong historical growth contrasts with ALAB’s recent consolidation.
• Insider selling (CRDO CTO, ALAB executives) [2][3] may signal executive concerns about current valuations.

• Risks
  : High P/E ratios (well above market averages), recent insider selling, short-term volatility (CRDO 5-day -5.99%, ALAB 5-day -2.46%) [0][2][3].
• Opportunities
  : Analyst consensus upside (CRDO +23.6%, ALAB +41%) [2][3] and AI sector growth.

Critical data points include analyst BUY ratings (CRDO:91.7% Buy, ALAB:80% Buy), target prices ($165 for CRDO, $200 for ALAB) [2][3]. Upcoming events: CRDO’s Q3 report (Dec 1) and ALAB’s next earnings update [4][5].