Oracle, Credo Jump Over 12%: Double Long ETF Soars Over 24%

TradingKey - On April 13, Eastern Time, Oracle ( ORCL) closed up 12.69% at $155.62, while Credo Technology ( CRDO) closed up 12.35% at $134.36. Driven by the underlying stocks, the 2x Bull Oracle ETF ( ORCX) saw a single-day gain of over 25%, while the 2x Bull Credo ETF ( CRDU) rose more than 24%. On the same day, both the S&P 500 and the Nasdaq Composite recovered all losses since the late March escalation of tensions in the Middle East, as market sentiment notably improved.

I. Oracle: A Key Step Forward in Enterprise AI Implementation

On April 13, at the Customer Edge Summit in Orlando, Oracle showcased AI solutions for the utilities sector, including Utilities Opower, which helps power companies improve energy efficiency, and Aconex, which optimizes management processes for large-scale engineering projects. These products are not merely conceptual demonstrations but have already been deployed in customer environments. Following the announcement, Oracle shares led the S&P 500 components for the day, surging 12.69%.

From late March to mid-April, Oracle launched several AI-related products:

This cadence indicates that Oracle is attempting to embed AI capabilities across its three major business lines—database, enterprise applications, and industry solutions—forming a complete product matrix from the infrastructure layer to the application layer.

Despite the single-day surge, Oracle is still down approximately 21% year-to-date, with a retracement of more than 50% from its historical highs. This pattern of "short-term rallies under long-term pressure" reflects the market's wait-and-see attitude toward its AI monetization capabilities. Morgan Stanley suggested in a recent report that the market adjustment may have entered its late stages, and AI is more likely to enhance corporate profit margins in the short term rather than compress them. For companies like Oracle with a vast enterprise customer base, if AI products can be consistently converted into revenue growth, there is indeed room for valuation recovery.

II. Credo Technology: A Key Player in AI Computing Infrastructure

Credo's rally was primarily driven by two factors:

First, the completion of the DustPhotonics acquisition

Credo announced the acquisition of DustPhotonics, a silicon photonics technology company with product lines spanning 400G, 800G, and 1.6T optical transceivers. This acquisition positions Credo within an approximately $6 billion optical market. The company expects revenue from its optical business to exceed $500 million in fiscal 2027.

CEO William Brennan stated in the announcement: "This combination puts us at an inflection point in the optical space. As the adoption of hyperscale AI infrastructure accelerates, the optical business will become a rapidly growing revenue stream."

Second, Jefferies initiated coverage with a "Buy" rating

Jefferies initiated coverage of Credo on April 13 with a price target of $175, representing approximately 30% upside from the day's closing price. The firm believes the market has not yet fully priced in Credo's growth prospects amidst the AI wave, noting that its Active Electrical Cable (AEC) business will continue to benefit from demand for data center construction.

From a financial perspective, Credo is showing strong growth momentum. According to the company's official financial report, Credo's revenue for the third quarter of fiscal 2026 (ended January 31, 2026) reached $407 million, a 201.5% year-over-year increase and a 51.9% sequential increase. Cumulative revenue for the first three quarters of fiscal 2026 (May 4, 2025, to January 31, 2026) was $898 million, up 236.69% year-over-year.

Credo's core products—high-speed connectivity chips, Active Electrical Cables (AEC), and SerDes—directly address the data transmission bottlenecks faced by AI data centers. As demand for AI computing power explodes, data transmission bandwidth has become an infrastructure component as critical as computing chips themselves.

The leveraged product associated with Credo—the Tradr Daily 2X Long CRDO Active ETF (CRDU)—magnifies the investment ratio to 200.01% through contracts for difference (CFDs), amplifying the gains of the underlying stock and explaining why the 2x long ETF rose by over 24%. It should be noted that leveraged ETFs suffer from path dependency decay due to daily rebalancing mechanisms; they are suitable for short-term swing trading, as long-term holding may lead to divergence from the underlying asset's performance.

III. Macroeconomic Background and Risk Warnings

The strong performance of tech stocks on April 13 is inextricably linked to the broader market environment. The S&P 500 and Nasdaq have recouped all losses since the late-March conflict involving the U.S., Israel, and Iran, as market expectations for a peace agreement have intensified. Morgan Stanley data indicates that the margin expansion driven by AI is already reflected in corporate earnings, with median growth reaching double digits, the fastest pace since 2021.

In terms of short-term risks, three points warrant attention: first, the current rally is partly predicated on peace expectations, and risk appetite could swiftly reverse if geopolitical tensions escalate; second, Morgan Stanley warns that a double bottom cannot be ruled out if the bond market sees renewed volatility; third, the daily rebalancing mechanism of 2x leveraged long ETFs creates additional costs in volatile markets.

Long-term outlook: The key for Oracle is whether AI can translate from "product launches" into sustainable revenue growth; for Credo, focus should be on post-acquisition integration, the penetration rate of high-speed connectivity solutions in hyperscale data centers, and the ramp-up pace of 800G/1.6T products.

IV. Conclusion

The joint surge of Oracle and Credo on April 13, 2026, coupled with the outperformance of their respective leveraged ETFs, signaled to the market that as AI transitions from "infrastructure investment" to "application deployment," companies with footprints in both areas are attracting investor capital. Oracle represents the potential for the existing enterprise market to unlock new growth through AI, while Credo represents the infrastructure sub-sector most poised to benefit from AI compute expansion. Their synchronized rally could serve as a key indicator for tech investment themes in 2026.