Cirrus Logic offers a cash-rich, highly profitable mixed-signal semiconductor story with meaningful re-rating potential if it can reduce Apple concentration through PC, HPMS, and pro-audio diversification.
Overview
Cirrus Logic is a highly specialized fabless mixed-signal semiconductor designer with leading positions in low-power audio, haptics, camera control, and power-management ICs. FY26 revenue reached a record $1.997 billion, up 5.3%, with Audio contributing 58% and HPMS 42%. The company benefits from deep customer integration, strong IP, and excellent cash generation, but faces extreme customer concentration, with Apple representing 91% of revenue. The investment case hinges on maintaining Apple design wins while expanding into PCs, consumer, automotive, and pro-audio markets.