What happened

Shares of Cirrus Logic (NASDAQ:CRUS) gained 12.9% last month, according to data from S&P Global Market Intelligence. In a month nearly devoid of real news from the digital-audio chip designer, the surge rested mainly on two simultaneous analyst notes.

So what

By July 24, Cirrus shares were trading in line with the S&P 500 market benchmark's performance for the month.

That's when analyst firm OTR Global issued a research note on the supply chain behind Apple (NASDAQ:AAPL) and its popular iPhone line, indicating that audio specialist Cirrus and digital-microphone maker Knowles Corp. (NYSE:KN) should see a big increase in iPhone-related orders when Cupertino rolls out its next generation of updated smartphones. Susquehanna followed suit, noting that Cirrus had won the contract to provide noise-canceling systems for the AirPods2 series of wireless earbuds.

Knowles shares surged 13% higher that day, boosted even further by an earnings report that seemed to confirm OTR Global's thesis. Meanwhile, Cirrus investors gave that stock a 4% single-day lift that turned into several days of positive momentum.

Close-up shot of a woman holding up two wireless earbuds in her well-manicured hands

Image source: Getty Images.

Now what

Cirrus presented its own quarterly report at the very end of July, crushing analyst estimates across the board. Even so, the stock is trading 19% lower year to date, after coming down from some lofty highs in the summer of 2017.

You can buy Cirrus shares for the low price of 12.5 times forward earnings, or 2.3 times the company's book value. I see plenty of room for further gains from this affordable plateau, especially if Cirrus finally gets a foot in the door of the larger market for Android devices.