Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of audio chip designer Cirrus Logic (Nasdaq: CRUS) jumped 12.7% in early trading today and might climb even higher.

So what: A Wall Street analyst upped Cirrus from hold to buy and kicked his target price up by 40%. The reason for this drastic upgrade: His checks indicate that Apple (Nasdaq: AAPL) is indeed working up an iPhone model compatible with networks like the ones found at Verizon (NYSE: VZ) Wireless and Sprint Nextel (NYSE: S), which should lead to dramatic increases in Cirrus' audio chip sales.

Now what: It gets even better: Cirrus is reportedly improving its chips to Apple's specifications and raising its unit prices significantly. Apple saves money because the new versions of these chips integrate functions of separate chips from other designers, and Cirrus obviously wins because of higher revenue per iPhone, iPad, or iPod. The only caveat to this reasoning is, of course, that those Verizon-compatible iPhones are still just a rumor -- albeit one reported from plenty of independent sources now.

Interested in more info on Cirrus Logic? Add it to your watchlist.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. Apple is a Motley Fool Stock Advisor pick. The Fool owns shares of Apple and Cirrus Logic. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.