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Here's How Much a $1000 Investment in Cirrus Logic Made 10 Years Ago Would Be Worth Today

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Cirrus Logic (CRUS - Free Report) ten years ago? It may not have been easy to hold on to CRUS for all that time, but if you did, how much would your investment be worth today?

Cirrus Logic's Business In-Depth

With that in mind, let's take a look at Cirrus Logic's main business drivers.

Headquarters in Austin, TX, Cirrus Logic is a fabless semiconductor supplier, which develops, manufactures and markets analog, mixed-signal, and audio DSP integrated circuits (ICs).

The company’s chips are used in a wide range of industrial and consumer markets including portable and non-portable media players, smartphones, tablets, home-theater receivers, automotive entertainment systems, televisions, docking stations, as well as wearables which includes, smart watches, action cameras, smart bands and VR headsets.

Apart from this, its mixed-signal converter chips are used in energy-related applications such as digital utility meter and LED controllers for the incandescent light-bulb replacement market.

In fiscal 2021, Cirrus Logic’s revenues logged $1.37 billion.

The company has two reportable segments – Audio and High-Performance Mixed-Signal.

Audio product lines include smart codecs, analog-to-digital converters, digital-to-analog converters, boosted amplifiers and standalone digital signal processors.

High-Performance Mixed-Signal products include haptic driver and sensing solutions, camera controllers and power-related components.

Audio products represented 81% of fiscal 2021 revenues while High-Performance Mixed-Signal products made up the remaining 19%.

Cirrus Logic sells products through both — direct and indirect sales channels. The company’s list of customers includes worlds’ leading electronic manufacturers. Notably, Apple Inc. is the company’s largest customer representing nearly 83% of its fiscal 2021 sales.

Some of the company’s primary competitors include AAC Technologies, AKM Semiconductor, Analog Devices, ams AG, Dialog Semiconductor, DSP Group, ESS Technology, GoerTek, Infineon Technologies, Knowles, Maxim Integrated Products, NXP Semiconductors, Qualcomm, Realtek Semiconductor, Skyworks Solutions, ST Microelectronics, Synaptics and Texas Instruments.

As of Mar 27, 2021, the company employees more than 1,481 people globally.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Cirrus Logic ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in March 2012 would be worth $3,718, or a gain of 271.80%, as of March 4, 2022, and this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 218.59% and gold's return of 8.69% over the same time frame.

Looking ahead, analysts are expecting more upside for CRUS.

Cirrus Logic is benefiting from strong demand for high-performance mixed-signal content shipping for smartphones, fast-charging ICs and haptic solutions. Customer engagement across its portfolio remains strong. Increase in penetration of its audio solutions in smartphones is a positive. Growth opportunities in voice biometrics and closed-loop controllers are likely to be the key catalysts. Although shares have underperformed the industry in the past year, these factors are like to help it grow in 2022. Nonetheless, its near-term prospect looks gloomy as it might not be able to fully capitalize on opportunities from strong semiconductor demand due to global supply chain constraints. Intensifying competition from semiconductor stalwarts, and adverse currency translations, as well as a volatile macroeconomic environment are other challenges.

Shares have gained 5.76% over the past four weeks and there have been 6 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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