Cirrus Logic stock rises 48% in 2024 with strong ties to Apple and AI potential

From Nasdaq: 2024-06-28 04:15:00

Cirrus Logic (NASDAQ: CRUS) stock has soared 48% in 2024 as Wall Street sees potential in the chipmaker’s ties to Apple. Apple contributes 87% of Cirrus’ revenue, and its AI push could benefit both companies. Cirrus posted strong Q4 results and guidance, showing optimism for future growth in AI-enabled devices like smartphones and PCs.

Apple’s integration of AI features in new iPhone models could lead to solid upgrade cycles and higher sales, with estimates projecting 244 million iPhone units sold in fiscal 2025, up 10% from the current year. The AI smartphone market is expected to see strong growth, offering opportunities for Apple to leverage this technology in its devices, benefiting suppliers like Cirrus Logic.

Cirrus Logic’s revenue in fiscal 2024 saw a slight decline, but analysts expect growth in the current fiscal year. With the company’s positioning in the AI market and strong relationship with Apple, investors are advised to consider buying CRUS stock at its current valuation, which is still relatively low at 26 times trailing earnings compared to tech sector averages. Analysts are bullish on Cirrus’ future prospects.

The Motley Fool’s Stock Advisor team has identified 10 top stocks with potential for significant returns, but Cirrus Logic did not make the list. However, historical data shows the success of past recommendations like Nvidia, with potential returns in the hundreds of thousands. The Stock Advisor service offers guidance for investors looking to build a successful portfolio and make informed investment decisions.AND as (*Stock Advisor returns as of June 24, 2024)



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