Up 69% in 2024, this booming artificial intelligence (AI) growth stock could continue to climb

Semiconductor specialist Cirrus Logic (NASDAQ: CRUS) may not be a household name like some of its industry peers, but the company has posted impressive results in the market so far this year, with gains of 69% at the time of writing.

Cirrus, known for supplying chips for Apple‘s (NASDAQ: AAPL) products, has exceeded the broader market Nasdaq-100 Technology Sector The index rose 10% by a wide margin. The good news is that Cirrus’ exceptional growth is here to stay and the company could end the year strong thanks to its largest customer. In addition, the arrival of artificial intelligence (AI)-compatible smartphones are likely to unlock a massive long-term growth opportunity for Cirrus Logic.

Let’s take a closer look at why investors should consider buying Cirrus Logic stock before it’s too late.

Cirrus Logic’s recent results point to a promising future

Cirrus Logic reported its fiscal 2025 first-quarter results (for the three months ended June 29) on August 6. The company’s revenue rose 18% year over year to $374 million, handily beating the consensus estimate of $318 million. Additionally, Cirrus’ adjusted earnings jumped 67% year over year to $1.12 per share, beating Wall Street’s estimate of $0.61 per share.

The good news doesn’t stop there, as Cirrus expects its fiscal second-quarter revenue to be between $490 million and $550 million. The midpoint of the guidance range is $520 million, well above Wall Street’s estimate of $485 million. Cirrus posted revenue of $481 million in the same quarter last year, indicating that its revenue is on track to grow 8% year over year.

Cirrus’ revenue could come in closer to the upper end of its guidance range thanks to its biggest customer, Apple, which accounted for 88% of its revenue in the most recent quarter. Cirrus management noted on its recent earnings call that its revenue exceeded the upper end of its initial guidance range thanks to “stronger-than-expected smartphone shipments.”

With Apple being Cirrus’ largest customer, this better-than-expected performance means that Cirrus received more orders for its chips in the latest quarter. This is not surprising, as Apple appears to be preparing for an aggressive rollout of its next-generation iPhones which are all ready to support generative AI features.

Apple’s iPhone 16 is set to hit shelves next month, and the tech giant is expected to ship 90 million units of its updated smartphone lineup this year. That would be a 10% increase from last year. But at the same time, supply chain reports indicate that Apple is stockpiling 120 million displays, suggesting that it could end up manufacturing more units than the market is currently anticipating.

The story continues

If so, Cirrus Logic’s growth in the current quarter should once again exceed expectations. But more importantly, the integration of Apple’s suite of generative AI capabilities…