The Short Answer
Credo Technology's business activity is qualitatively halal, but its current quantitative asset-based screen fails. The May 2, 2026 filing shows liquidity/assets of 62.87% and receivables plus cash/assets of 60.91%. This is a ZakatInvest calculation, not a universal scholar ruling.
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-05-02; calculated 2026-07-15.
0 / 2,295.619
1,443.286 / 2,295.619
1,398.329 / 2,295.619
31.3 / 1,335.116
- Financial
- Fails
- Overall
- Fails
Debt/assets is 0.00%, liquidity/assets is 62.87% and receivables-plus-cash/assets is 60.91%; liquidity and receivables exceed the examined limits. Interest income is 2.34% of revenue.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 62.87% and receivables-plus-cash/assets is 60.91%, above the examined MSCI total-assets limits; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 62.87%, above the examined Malaysia 33% limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; liquidity and receivables failure is independently documented.
Business-activity disclosure
Credo designs high-speed connectivity chips, active electrical cables and optical solutions for data centers and AI infrastructure. Semiconductor and networking activity is generally permissible, while downstream customer and end-use revenue remains qualitative.
Limitation: The filing does not classify data-center, cloud, AI or customer end uses by a universal Sharia category.
Purification
Credo discloses interest income of $31.300 million, but ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Credo's May 2, 2026 Form 10-K.
- No interest-bearing debt is reported; operating lease liabilities are excluded.
- Cash and cash equivalents are $1,164.952 million and short-term certificates of deposit are $278.334 million.
- Accounts receivable is $233.377 million and fiscal-year revenue is $1,335.116 million.
- The filing discloses $31.300 million of interest income from cash and short-term investments.
- High-speed connectivity semiconductors and cables are generally permissible, but no universal prohibited-revenue numerator is disclosed.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Designing and selling high-speed connectivity semiconductors is generally permissible at the activity level. Credo has no interest-bearing debt, but its cash, certificates of deposit and receivables are unusually high relative to assets; disclosed interest income is 2.34% of revenue and no universal prohibited-revenue numerator is disclosed.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Credo's Business Activity
Credo's high-speed connectivity portfolio includes:
- Active electrical cables (AECs): Reliable in-rack and rack-to-rack data links
- SerDes chiplets and DSPs: High-speed data movement within systems
- Line-card and optical solutions: Retimers and DSPs for data-center networking
Designing and selling these semiconductors is permissible at the activity level — enabling efficient data movement in data-center and AI-computing systems.
Concerns to Be Aware Of
1. Interest Income on Cash
Cash and short-term certificates of deposit total $1,443.286 million, or 62.87% of assets, above the examined liquidity limits. Disclosed interest income is 2.34% of fiscal-year revenue; ZakatInvest does not prescribe a fixed purification percentage.
2. Debt Ratio
Credo reports no interest-bearing debt, so the debt/assets calculation is 0.00%. That pass does not offset the liquidity and receivables failures, and a market-cap denominator is not calculated here.
3. Customer Concentration and Cyclicality
As a fast-growing supplier with meaningful customer concentration among large data-center buyers, Credo's revenue can be lumpy and valuation-sensitive. This is a business consideration rather than a Sharia screen concern.
Filing-Based Ratios (May 2, 2026)
These calculations use Credo's fiscal-year 2026 Form 10-K and total-assets denominators:
- Debt / assets: 0.00% — passes the examined debt limit
- Cash + certificates of deposit / assets: 62.87% — fails the examined liquidity limits
- Receivables + cash / assets: 60.91% — fails the examined FTSE and MSCI limits
- Interest income / revenue: 2.34%; no fixed purification percentage asserted
Methodology Interpretation
On the stored total-assets calculations, FTSE Yasaar and MSCI Islamic financial screens fail on liquidity and receivables; Malaysia SAC also fails its liquidity comparison. These are comparisons with published methodologies, not claims of index membership or an external agency verdict.
Bottom Line
Credo Technology (CRDO) has a generally permissible connectivity business, but the current filing-based quantitative screen fails because liquidity/assets and receivables plus cash/assets exceed the examined limits. This is not a universal halal certification; investors should consult a qualified scholar and review updated filings.
For Muslim investors seeking semiconductor exposure, CRDO sits alongside other halal-screened names like NVIDIA (NVDA) and Applied Materials (AMAT).
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