In the blazing surge of AI infrastructure, a fast-rising hardware company is quietly rewriting the connectivity playbook. As data centers expand into mega-clusters with thousands of GPUs, the demand for ultra-high-speed links and precision networking gear has exploded—and this firm’s innovative copper and optical interconnect solutions are right in the sweet spot. With cutting-edge Active Electrical Cables (AECs) and a recent win in the hyperscale market delivering serious customer momentum, investors are suddenly paying attention. The technicals are flashing along with the story—support is building behind this stock, the breakout is real, and this setup deserves to be on every trader’s radar.

If you haven’t already, the stock you need to hear about today is Credo Technology Group (CRDO) — and right now, it’s one of the most electrifying breakout stories in the entire AI space. After months of disciplined consolidation, shares have reignited, surging through resistance and printing fresh 52-week highs — a move that signals renewed strength and conviction behind the trend. What makes this breakout even more compelling is the quality of the setup: the stock has been riding a clean, well-defined uptrend, with every minor pullback finding firm support before launching higher again. Seeing a name like this push into new-high territory — while demand for its next-gen connectivity tech continues to accelerate — is exactly the kind of price action I look for when identifying my next trade setup.

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For this setup, I’d target CRDO using an in-the-money call debit spread — a strategic play that fits perfectly with the stock’s strong technicals and accelerating momentum. CRDO has been on a tear, climbing steadily for months, but with gains this sharp, a brief cooling period or rotation wouldn’t be out of the question. That’s why I want a bit of a safety margin built-in while still maintaining solid upside exposure. The options here remain rich with premium, and that’s exactly what I want to take advantage of. By structuring a trade this way, I’m capturing that extra time value and setting up a high-probability trade — one that could produce a potential 77% profit even if CRDO’s shares stay flat or dip slightly over the next several weeks. It’s the kind of setup that gives me confidence in both the strategy and the reward potential.

If you want to learn the exact process I use to uncover opportunities like this — and get actionable trade ideas every single week — make sure you’re subscribed to our Weekly Stock & Option Alert Newsletter. Our team breaks down the charts, the signals, and the setups behind trades just like this one, with clear ideas you can actually act on. And right now, you can join at a steeply discounted rate — a fraction of what professional trade research usually costs. Opportunities like this don’t wait… and neither should you. Go ahead and make sure you receive the next edition of our newsletter!

Wishing You the Best in Investing Success,

Blane Markham

Chief Trading Strategist

Author, Trade of the Day

Have any questions? Email us at dailytrade@chuckstod.com

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