Investor Relations Update As of May 6, 2025 Safe Harbor Statement Except for historical information contained herein, the matters set forth in this presentation contain forward-looking statements, including industry market projections; our revenue growth opportunities; our ability to fuel product and application diversification; our ability to maintain our leadership position in smartphone audio; our ability to increase HPMS content in smartphones; our ability to leverage our strength in audio and HPMS to e ...

Group 1: Semiconductor Industry Overview - Trade tensions have created opportunities in the semiconductor sector, leading to some chip stocks being undervalued [1][3] - The semiconductor industry has historically generated significant wealth for investors, particularly during technological booms [2] Group 2: NXP Semiconductors - NXP's stock has decreased by 18% in 2025, influenced by trade-related volatility and its reliance on international markets [4][5] - The company derives only 14% of its 2024 revenues from American customers, with 36% from China, making it vulnerable to trade disruptions [5] - NXP's shares are currently trading at 17.5 times adjusted earnings and 14.4 times forward-looking earnings estimates, near two-year lows, indicating potential undervaluation [6] - The market has already priced in a significant slowdown in NXP's business due to tariff tensions, suggesting it may be a good investment opportunity [7] Group 3: Cirrus Logic - Cirrus Logic is trading at 15.5 times adjusted earnings and 12.5 times forward earnings, which are multiyear lows, making it appear undervalued compared to NXP [8] - The company is known for its long-standing relationship with Apple, supplying audio circuits for various devices, but is now expanding its market reach beyond Apple products [9][10] - Cirrus Logic has begun to diversify its client base and product offerings, which may enhance its growth potential despite current market challenges [11]

Company Performance - Cirrus Logic (CRUS) shares increased by 16.5% to close at $90.23, following a notable trading volume, contrasting with a 23.9% loss over the past four weeks [1] - The rise in share price is linked to President Trump's announcement of a 90-day suspension on reciprocal tariffs, excluding China, which positively impacted market indices and lifted many stocks, including Cirrus Logic [2] - Company-specific factors such as growing momentum in the laptop market and increased design wins with customers for next-generation flagship smartphones are contributing to the stock's performance [3] Product Demand and Partnerships - Strong demand for Cirrus Logic's latest custom-boosted amplifier and 22nm smart codec is driving growth [4] - Partnerships with Intel and other top OEMs are enhancing the company's presence in the laptop market [4] - The ongoing share buyback program reflects the company's confidence and commitment to shareholder value [4] Earnings Expectations - Cirrus Logic is expected to report quarterly earnings of $1.15 per share, representing a year-over-year decline of 7.3%, with revenues projected at $379.99 million, up 2.2% from the previous year [5] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [6] Industry Context - Cirrus Logic is part of the Zacks Electronics - Semiconductors industry, where another company, Allegro MicroSystems, Inc. (ALGM), saw a 22.7% increase in its stock price, although it has returned -25.7% over the past month [6] - Allegro MicroSystems has an unchanged EPS estimate of $0.05 for its upcoming report, reflecting an 80% decline from the previous year, and currently holds a Zacks Rank of 3 (Hold) [7]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [4] - The Momentum Score identifies stocks with upward or downward trends based on recent price changes and earnings estimate revisions [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize investment success, it is recommended to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower Zacks Ranks, even with high Style Scores, may still face downward price trends due to negative earnings outlooks [10] Company Spotlight: Cirrus Logic - Cirrus Logic, a fabless semiconductor supplier based in Austin, TX, holds a Zacks Rank of 2 (Buy) and a VGM Score of A, making it a notable investment opportunity [11] - The company has a Momentum Style Score of B, with shares increasing by 3.1% over the past four weeks [11] - For fiscal 2025, Cirrus Logic's earnings estimate has been revised upwards by three analysts, with the Zacks Consensus Estimate rising by $0.61 to $7.02 per share, and an average earnings surprise of 50.1% [12]

Group 1 - Cirrus Logic (CRUS) has returned 10.3% year-to-date, outperforming the Computer and Technology sector, which has lost about 0.9% on average [4] - The Zacks Rank for Cirrus Logic is currently 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the consensus estimate for Cirrus Logic's full-year earnings has increased by 8.1%, reflecting improved analyst sentiment [3] Group 2 - Cirrus Logic is part of the Electronics - Semiconductors industry, which consists of 44 companies and currently ranks 131 in the Zacks Industry Rank [5] - The average performance of the Electronics - Semiconductors industry has been a loss of 2.6% year-to-date, indicating that Cirrus Logic is performing better than its peers [5] - Affirm Holdings (AFRM), another stock in the Computer and Technology sector, has returned 6% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][6]

Core Viewpoint - Cirrus Logic (CRUS) shares have increased by 6.5% over the past four weeks, closing at $107.48, with analysts suggesting a potential upside based on price targets [1] Price Performance - The stock has shown a 6.5% gain in the last four weeks [1] - The closing price for the last trading session was $107.48 [1] Analyst Price Targets - The mean price target from Wall Street analysts is $135.83, indicating a potential upside of 26.4% from the current price [1]

Group 1 - The article emphasizes a long-term investment perspective on Cirrus Logic, Inc. (NASDAQ: CRUS), highlighting the company's future potential and direction [1] - The author has extensive experience in investing, having navigated multiple market crashes over the decades, which informs their analysis of CRUS [1] - The article reflects a commitment to both buy-and-hold strategies and trading systems, indicating a balanced approach to investment [1] Group 2 - The author holds a beneficial long position in CRUS shares, indicating confidence in the company's performance [2] - The article is presented as an independent opinion, with no external compensation influencing the analysis [2] - There is no business relationship with any company mentioned, ensuring the analysis is unbiased [2]

Core Viewpoint - Cirrus Logic reported better-than-expected fiscal Q3 2025 results, driven by strong demand for its semiconductors used in smartphones and laptops, exceeding its revenue guidance range [1][2]. Financial Performance - Cirrus Logic achieved quarterly revenue of $556 million, surpassing its guidance of $480 million to $540 million, despite a 10% decline from the previous year [2]. - Analysts project earnings growth of 7% for the current fiscal year, with expectations of double-digit growth in fiscal 2027 [9][10]. Customer Dependency - Apple accounted for 91% of Cirrus' revenue in the latest quarter, raising concerns about reliance on a single customer [4]. - Despite this dependency, Cirrus management maintains a strong relationship with Apple, indicating ongoing design activity across various products [4]. Market Trends - Sales of Apple's iPads and MacBooks have increased by 15% year-over-year, attributed to the introduction of AI features [4]. - A potential recovery in iPhone sales is anticipated, with Apple expected to ship at least 240 million iPhones in 2025, up from 232 million in 2024 [5][7]. Product Diversification - Cirrus is diversifying its market presence, with audio solutions now being featured in laptops and supplying components for a flagship smartphone from a leading Android OEM [8]. Valuation and Growth Potential - Cirrus is currently trading at 19 times earnings, presenting an attractive investment opportunity with a potential 29% price increase based on a 12-month median price target of $135 [11].

Market Overview - The stock market has shown resilience despite a volatile start to 2025, with key indicators such as the January CPI and Nvidia's earnings expected to influence future movements [1] - Bullish fundamentals for the stock market are anticipated to remain intact in the near future [1] Investment Strategy - Investors are advised to be cautious about purchasing stocks that may be overpriced as the market approaches all-time highs [2] - There are numerous value stocks available for investment, particularly those with strong earnings outlooks [2] Screening Methodology - The screening process utilizes the Research Wizard to identify top value stocks, focusing on Zacks Rank 1 (Strong Buys) or 2 (Buys) [3] - The screen prioritizes stocks with price-to-earnings (P/E) ratios and price-to-sales (P/S) ratios below the industry median [4][7] - It also considers quarterly earnings rates above the industry median and incorporates upgrades and estimate revisions to select the best stocks [4] Featured Stock: Cirrus Logic, Inc. (CRUS) - Cirrus Logic is highlighted as a strong value stock, specializing in low-power, high-precision mixed-signal processing solutions [5] - The company aims to maintain its leadership in smartphone audio and increase its high-performance mixed-signal content in smartphones [6] - Cirrus Logic has exceeded earnings estimates by an average of 50% over the past four quarters, with a notable 24% beat in Q3 FY25 [8] - The stock has appreciated nearly 1,400% over the last 15 years, significantly outperforming the Tech sector's 640% growth [8] - Despite recent underperformance, the stock is currently trading at a 50% discount to its 10-year highs and a 30% discount compared to the Tech sector [10]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, focusing on undervalued stocks [3] Growth Score - The Growth Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings outlook changes, helping investors identify optimal buying opportunities for high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, serving as a comprehensive indicator for selecting stocks with the best overall potential [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] Stock Example: Cirrus Logic (CRUS) - Cirrus Logic, a fabless semiconductor supplier, holds a 2 (Buy) rating on the Zacks Rank and has a VGM Score of A, making it attractive for momentum investors [12] - The stock has seen a 4.5% increase over the past four weeks, with two analysts raising earnings estimates for fiscal 2025, leading to a Zacks Consensus Estimate of $6.83 per share [12][13] - Cirrus Logic has an average earnings surprise of 50.1%, indicating strong performance potential [13]