Please ensure Javascript is enabled for purposes of website accessibility

How Cirrus Logic, Inc. Stock Rose 12.2% in March

By Anders Bylund - Apr 7, 2017 at 5:21PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The audio chip specialist sat idly by, watching Samsung open the gates to a high-def audio market in Android phones.

What happened

Shares of Cirrus Logic (CRUS -1.22%) gained 12.2% in March 2017, according to data from S&P Global Market Intelligence.

So what

The company didn't post any significant news of its own last month, but Cirrus shares had some bouncing to do after an overly harsh plunge following February's third-quarter report. Along the way, smartphone giant Samsung (NASDAQOTH: SSNLF) announced high-definition audio support for the upcoming Samsung Galaxy S8 flagship phone, paving the way for more interest in Cirrus' market-leading audio chips.

Woman on bus, with smartphone and headphones.

Image source: Getty Images.

Now what

High-quality audio has been the traditional hallmark of Apple 's iPhones, where Cirrus has been the sole supplier of audio solutions for many years. The larger Android market has resisted following suit in order to save a few pennies on component costs. It is not absolutely certain that Cirrus will provide the audio chips for the Galaxy S8, as Samsung may have developed an in-house solution rather than reaching out to the market leader, but the mere presence of high-def audio in this market-defining handset should open up the floodgates for that selling point in the larger Android sector. Not every smartphone builder comes with a chip-design division, so Cirrus should expect phone builders to come knocking in search of a few strong audio chips.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Cirrus Logic, Inc. Stock Quote
Cirrus Logic, Inc.
$78.49 (-1.22%) $0.97

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.