Did Cirrus Logic's (CRUS) Automotive Haptics Push Just Shift Its Diversification Narrative?
- Cirrus Logic recently launched its first AEC-Q100-qualified automotive haptic driver family (CS40L51, CS40L52 and CS40L53), bringing its closed-loop haptics technology from consumer devices into in-cabin automotive interfaces such as displays, steering wheels and smart surfaces.
- This move extends Cirrus Logic’s mixed-signal and haptics capabilities into the early-stage automotive user-experience market, potentially broadening its addressable end markets beyond core smartphone and PC applications.
- We’ll now examine how Cirrus Logic’s AEC-Q100-qualified automotive haptics launch could influence its diversification-focused investment narrative and future growth profile.
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Cirrus Logic Investment Narrative Recap
To own Cirrus Logic, you need to believe its audio and mixed-signal strengths can translate into durable earnings, even as smartphones remain the core revenue driver. The new AEC-Q100-qualified automotive haptic drivers support that diversification story, but they do not immediately change the key near term catalyst, which remains execution with major smartphone customers, or the biggest risk around customer concentration and potential normalization after recent supply chain pull ins.
The launch of Cirrus Logic’s first automotive qualified haptic driver family sits alongside its ongoing capital return program, including a US$500,000,000 share repurchase authorization announced in May 2025. While buybacks may appeal to some shareholders, many will likely still focus on how quickly newer markets such as automotive and PCs can scale to reduce dependence on a few large smartphone customers.
Yet investors should also be aware that if non smartphone markets remain small for longer than expected, the company’s exposure to any shift in major customer orders...
Read the full narrative on Cirrus Logic (it's free!)
Cirrus Logic's narrative projects $1.9 billion revenue and $295.7 million earnings by 2028.
Uncover how Cirrus Logic's forecasts yield a $140.00 fair value, a 14% upside to its current price.
Exploring Other Perspectives
Four Simply Wall St Community fair value estimates for Cirrus Logic span a wide US$84.85 to US$252.74, reflecting very different expectations. When you set that against the company’s heavy reliance on a handful of smartphone customers, it becomes even more important to compare several views on how diversification efforts might influence future performance.
Explore 4 other fair value estimates on Cirrus Logic - why the stock might be worth over 2x more than the current price!
Build Your Own Cirrus Logic Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Cirrus Logic research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Cirrus Logic research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cirrus Logic's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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