15 AI Stocks That Are On Sale

9. Cirrus Logic, Inc. (NASDAQ:CRUS)

Number of Hedge Fund Holders: 24

Expected Earnings Growth: 3%

P/E Ratio: 17.9

Cirrus Logic, Inc. (NASDAQ:CRUS) is a semiconductor company that develops low-power, high-precision, mixed-signal processing solutions internationally. It is based in Austin, Texas.

A major plus point for Cirrus Logic, Inc. (NASDAQ:CRUS) is its close collaboration with Apple since this company is a key chip supplier to the iPhone maker. With analyst expectations for the iPhone 16 improving in light of the launch of Apple Intelligence, some analysts like Keybanc’s John Vinh expect Cirrus Logic, Inc. (NASDAQ:CRUS) to benefit from its continuing provision of the iPhone’s audio chips.

There is also the possibility for greater collaboration between the two companies since Vinh noted that there is a possibility that Cirrus Logic, Inc. (NASDAQ:CRUS) will also be providing the haptics driver for the iPhone 16’s new camera button. Additionally, increasing demand for AI is expected to aid Cirrus Logic, Inc. (NASDAQ:CRUS) indirectly. Since Apple Intelligence is only available on the newest iPhone models, there’s a general expectation that more people will upgrade their models in the coming months, meaning Cirrus Logic, Inc. (NASDAQ:CRUS) will reap the profits from higher sales of the new models as well.

Since Cirrus Logic, Inc. (NASDAQ:CRUS) generated about 87% of its revenue from its relationship with Apple in 2023, many expect the current developments to be in favor of this chip maker. However, some also consider this heavy reliance on the big tech giant to be a red flag for Cirrus Logic, Inc. (NASDAQ:CRUS). Despite these concerns, as long as the AI boom continues, the current pricing of Cirrus Logic, Inc. (NASDAQ:CRUS) makes the stock seem like a steal.

In total, 24 hedge funds were long Cirrus Logic, Inc. (NASDAQ:CRUS) in the second quarter, with a total stake value of $290.7 million.