Is It Finally Time to Buy This Incredibly Cheap Semiconductor Stock?

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].