Cirrus Logic Inc. CRUS recently teamed up with Intel Corporation INTC to unveil a reference design based on the new Intel Core Ultra processors (series 2), formerly codenamed Arrow Lake. The collaboration emphasizes CRUS’ commitment to innovation and delivering premium audio experiences for PC users across mainstream, premium and high-end market segments.

Investors responded positively to this partnership, with CRUS’ shares going up 2.7% and closing the session at $105.2 on Jan. 7.

Cirrus Logic, Inc. Price and Consensus

Cirrus Logic, Inc. price-consensus-chart | Cirrus Logic, Inc. Quote

The new Intel reference design is engineered to support a variety of audio architectures, ranging from simple two-speaker setups to complex six-speaker configurations. This versatility ensures compatibility with full-range speakers as well as tweeter-and-woofer combinations, giving OEMs (original equipment manufacturers) the flexibility to tailor the audio experience to different device categories. By integrating Cirrus Logic's high-quality audio codecs and amplifier chips with Intel's Core Ultra processors, the solution is likely to deliver an immersive audio experience. 

It offers enhanced sound quality, low power consumption and flexible audio configurations to meet the diverse needs of OEMs. A key aspect of this design is Cirrus Logic’s low-power IP, which is specifically engineered to enhance battery efficiency. It also streamlines the design and validation process for PC manufacturers. Comprehensive optimization and testing by both companies guarantee compatibility and high performance across different audio setups.

As user expectations for PC audio continue to rise, the partnership between Cirrus Logic and Intel is set to reshape the future of the PC industry. OEMs are expected to gain access to the Cirrus Logic reference design for the Intel Core Ultra processor (series 2).

With a strong foothold in low-power, high-precision mixed-signal processing, Cirrus Logic continues to innovate in the audio space. In December 2024, it introduced its new timing devices, the CS2500, CS2501 and CS2600. Specifically engineered to meet the evolving demands of automotive and professional audio applications, these devices are poised to transform how audio systems synchronize and perform.

Strong financial growth underscores CRUS's dedication to innovation and flexibility, driving its ongoing success and efforts to expand in the consumer electronics market. In the last reported quarter, the company’s revenues grew 12.6% year over year to $541.9 million. The top line was close to the high end of its guidance. The company attributes this strong revenue growth to heightened demand for products in the smartphone sector and significant expansion in the laptop market.

CRUS’ Zacks Rank & Stock Price Performance

CRUS currently carries a Zacks Rank #2 (Buy). Shares of the company have rallied 32.5% in the past year compared with the sub-industry's growth of 67.3%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are InterDigital, Inc. IDCC and Qualcomm Incorporated QCOM. IDCC presently sports a Zacks Rank #1(Strong Buy), while QCOM carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.

Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. It is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.

 

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