Apple Supplier Cirrus Logic Outperforms Tech Giant

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Apple stock has posted respectable gains over the past six months, but its supplier partner Cirrus Logic has been an even better investment. Cirrus Logic, which supplies audio, haptics, power management, and camera controller chips for iPhones, has seen its stock jump 33% in the past six months - nearly double Apple's gains. With Cirrus Logic's revenue and earnings growth outpacing Apple's, and the company trading at a significant discount to the tech giant, it may be a better way to capitalize on the growth of the AI smartphone market.

Why it matters

Cirrus Logic's strong performance and attractive valuation compared to Apple highlights how investors can sometimes find better opportunities in a company's supply chain rather than just focusing on the main product brand. This case study provides insights into how investors can identify potentially undervalued suppliers that may benefit from the success of their larger customers.

The details

Cirrus Logic, which derives 94% of its revenue from Apple, has seen its stock price jump 33% in the past six months, outpacing Apple's 11.6% gain. In its latest quarterly results, Cirrus reported a 4.4% year-over-year revenue increase and an 18% jump in earnings to $2.97 per share, exceeding expectations. The company is poised to end the current fiscal year with 20% earnings growth, outpacing the 16% average for S&P 500 companies. Cirrus is also trading at a significant discount to Apple, with a P/E ratio of 19 compared to Apple's 35.

• Cirrus Logic reported its latest quarterly results on February 3, 2026.
• In the third quarter of fiscal 2026 (ended December 27, 2025), Cirrus Logic derived 94% of its revenue from Apple.

What they’re saying

What’s next

Investors will be closely watching Cirrus Logic's future financial results and guidance to see if the company can continue to outperform Apple and the broader market.