Apple’s stock has performed solidly in the market over the past six months, achieving an impressive gain of 11.6%. This performance surpasses the S&P 500’s 5.8% rise during the same period. The tech giant’s success can be attributed to strong demand for its latest iPhone models, which contributed to a significant 16% increase in revenue for the first quarter of fiscal 2026, totaling nearly $144 billion. The company also reported a noteworthy 19% increase in adjusted earnings per share.
Looking ahead, Apple is poised to maintain its market momentum, fueled by the rising adoption of generative AI in smartphones and the robust performance of its high-margin services segment. However, investors might find an enticing alternative in Cirrus Logic, one of Apple’s key suppliers, which has outpaced Apple’s stock performance in the same timeframe.
Cirrus Logic has seen its stock soar by 33% over the past six months, nearly double Apple’s gains. Notably, Apple is Cirrus’ largest customer, accounting for an overwhelming 94% of its revenue as of the third quarter of fiscal 2026, which concluded on December 27, 2025. Cirrus specializes in manufacturing audio codecs, haptics, power management, and camera controller chips for smartphones, and its dependency on Apple appears to be a significant growth driver.
Following the release of its latest quarterly results on February 3, Cirrus stock jumped over 8%. The better-than-expected performance showcased revenue that exceeded the high end of the company’s guidance, driven by unexpectedly strong demand for smartphone components and a beneficial mix of end devices. Cirrus’ revenue increased by 4.4% year over year, complemented by an 18% surge in earnings, reaching $2.97 per share.
Analysts are optimistic about Cirrus’ future, predicting a 20% increase in earnings by the end of the current fiscal year, projecting earnings per share to reach $9.05. This exceeds the estimated 16% average growth expected among S&P 500 companies. Currently, Cirrus is trading at 19 times its earnings, which is a discount compared to the S&P 500’s average multiple of 25. In comparison, Apple trades at nearly 35 times its earnings, positioning Cirrus as a potentially better value stock amid its strong growth trajectory.
Market analysts, including Dan Ives from Wedbush Securities, suggest that Apple’s iPhone shipments might outstrip Wall Street expectations, which currently estimate 230 million units for the fiscal year. Some projections indicate Apple could ship as many as 250 million units, supported by a significant number of users who have not upgraded their devices in the last four years. This potential upgrade cycle could further amplify Apple’s and, subsequently, Cirrus’ growth prospects.
As the market acknowledges Cirrus’ rising growth trajectory, it may also lead to a higher earnings multiple for the company, potentially translating into further stock appreciation. Therefore, investors might find it prudent to consider adding Cirrus Logic to their portfolios, especially given its close ties to Apple’s ongoing success and promising market positioning.
