Cirrus Logic Stock (NASDAQ: CRUS) Hits New ATH’s After 61% Gain

Cirrus Logic stocks (NASDAQ: CRUS) have experienced a strong rally over the past 12 months, adding 61% as investor confidence strengthens. The semiconductor name's impressive performance and bullish sentiment from Wall Street underscores the potential that lies ahead for Cirrus Logic, particularly as it takes strides in the artificial intelligence (AI) sphere.

The last 12 months have been strong for many AI names, and the sentiment building in CRUS has pushed the stock to new all time highs of $128.64.

Cirrus Logic's deep connection with Apple, as its largest customer, contributes significantly to its top-line figures—with Apple accounting for a commanding 87% of Cirrus Logic's revenue in fiscal 2024. The tech giant's reliance on Cirrus Logic's expertise in audio codecs, camera controllers, fast-charging chips, and haptics solutions for smartphones signals a symbiotic relationship that is robust and instrumental to Cirrus Logic's financial stability.

For the fourth quarter of fiscal 2024, Cirrus Logic reported a robust revenue of $372 million, surpassing the estimates set by Wall Street analysts. This financial milestone is underscored by the notable increase in non-GAAP earnings per share (EPS), which spiked by 35% year over year to $1.24—nearly double what the consensus anticipated.

Analysts are not only encouraged by the company's recent performance, but they are also optimistically looking ahead at the burgeoning AI smartphone market. The expansion in this market segment is expected to benefit Cirrus Logic enormously. Additionally, the forecasts from analysts like those at JPMorgan, who predict a 10% increase in iPhone sales to 244 million units in fiscal 2025, add to the positive outlook, especially with the potential ramp-up in 2026.

Despite a nearly 6% decline in revenue in fiscal 2024 compared to the prior year, analysts are forecasting a turnaround and expect a modest improvement in the current fiscal period. Cirrus Logic's current trading multiple at 26 times trailing earnings presents a value proposition for investors, especially when juxtaposed with the Nasdaq-100's higher trailing earnings multiple of 32.

The stock market continues to respond to Cirrus Logic's operational undertakings and its pivotal partnership with Apple. As the company maneuvers through fiscal 2025, all eyes will be on how it leverages the AI advancements in smartphones and navigates the challenges and opportunities that lie ahead in the semiconductor industry. With a slate of predictions in its favor and a strategic anchor in Apple's iPhone sales, Cirrus Logic's financial horizon looks filled with promise.