This Semiconductor Stock Has Jumped 48% in 2024, and Artificial Intelligence (AI) Could Help It Soar Further
Share prices of Cirrus Logic (NASDAQ: CRUS) have been in fine form so far in 2024, clocking gains of 48% as Wall Street turns bullish on the chipmaker's prospects. The market is excited about a turnaround in the smartphone market, its solid quarterly results, and a potential improvement in the fortunes of its largest customer -- (NASDAQ: AAPL).
After all, Cirrus is highly reliant on Apple for a major chunk of its top line. In the recently concluded fiscal 2024 (which ended on March 30), Apple accounted for a whopping 87% of Cirrus' revenue. Apple's share of Cirrus' top line has increased in recent years. Apple contracts accounted for 83% and 79% of its revenue in the preceding two fiscal years.
While reliance on a single customer for so much business is not a good thing, a turnaround in Apple's fortunes related to its efforts in artificial intelligence (AI) could be a blessing in disguise for Cirrus Logic. Here's why.
Source Fool.com
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