Cirrus Logic Surges as Apple Tariff Relief Boosts Growth Outlook

Cirrus Logic experiences a 23% stock jump thanks to tariff relief for Apple, its largest client. With earnings per share growing significantly and robust AI sales anticipated, investors may find this a prime time to buy shares.

Date: 17-05-2025

AI Rating: 7

**Cirrus Logic's Stock Outlook**
Cirrus Logic has seen a notable increase in its stock price, reflecting investor optimism following tariff exemptions for its largest customer, Apple. With Apple accounting for 89% of Cirrus's revenue, any positive news regarding tariffs directly impacts Cirrus's outlook.

The report indicates that Cirrus Logic's adjusted earnings per share (EPS) increased by 14% to $7.54, which is a strong indication of profitability despite challenging market conditions for Apple. This growth suggests robust profit margins and effective cost management, setting a positive tone for potential investors.

**Tariffs and Revenue Growth**
The recent tariff reprieve underlines a potential for revenue growth for Cirrus Logic. With Apple's sales previously at risk due to high tariffs on imports from China, the stabilization in U.S.-China trade relations could foster an environment for increased sales of Cirrus's components in Apple's products, particularly the new AI-enabled iPhones.

Moreover, the report notes Cirrus's year-over-year revenue growth of 6% in fiscal 2025. While this number appears modest, the 14% growth in the fourth quarter highlights momentum potentially driven by increased orders from Apple as it diversifies the products Cirrus supplies.

**Profit Margins and Future Expectations**
The improved sales performance, driven by AI innovations in Apple’s product line, points towards enhanced profitability. Cirrus Logic's price-to-earnings (P/E) ratio is currently below 18, indicating it may still be undervalued considering the projected earnings growth. Analysts have updated their growth forecasts favorably post-report, creating an excellent investment sentiment.

Cirrus Logic's strong association with Apple's innovation, particularly with projections of compounded growth in AI-integrated devices, paints a compelling narrative for long-term investment. Given all these factors, the overall outlook for Cirrus Logic remains positive in the short term, with strong earnings likely helping maintain stock valuation amid market volatility.

Stocks: AAPL CRUS