Cirrus Logic Stock Breaks Out On Apple Partnership

Cirrus Logic (CRUS) stock jumped on Thursday after customer Apple (AAPL) named the fabless chipmaker to its American Manufacturing Program.

Apple said it is working with Bosch, Cirrus Logic, TDK and Qnity Electronics (Q) to manufacture essential materials and components in the U.S. for its products sold around the world.

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Apple’s American Manufacturing Program is planning to spend $400 million with the new partners through 2030.

In a news release, Apple said it is working with Cirrus Logic and chipmaker GlobalFoundries (GFS) to establish new semiconductor process technologies at GlobalFoundries’ facility in Malta, New York. The collaboration will enable Cirrus Logic to develop mixed-signal solutions for several Apple products, including advanced integrated circuits to power Face ID systems.

Cirrus Logic specializes in low-power, high-precision mixed-signal processing solutions. It is known for high-end audio and voice technology found in smartphones and other electronic products.

In afternoon trades on the stock market today, Cirrus stock rose more than 6% to 152.86.

With the move higher, Cirrus Logic stock broke out of a flat base at a buy point of 146.88, according to MarketSurge charts.

Cirrus Logic Stock Is On Tech Leaders List

On Feb. 4, CRUS stock broke out of a cup-with-handle base at a buy point of 133.87. That breakout occurred after Cirrus Logic posted better-than-expected results for its fiscal third quarter ended Dec. 27.

The Austin, Texas-based company earned an adjusted $2.97 a share, up 18% year over year, on sales of $580.6 million, up 4.5%, in fiscal Q3.

Barclays analyst Tom O’Malley said the Apple announcement hints at new Cirrus Logic content in iPhones.

“We think the press release indicates a new socket for powering Face ID where the company does not have content today,” O’Malley said in a client note. “Given it is a new process technology, it will likely take several years to build up, which likely suggests a 2028 timeline.”

O’Malley rates Cirrus Logic stock as equal weight, or neutral, with a price target of 120.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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