Cirrus Logic, Inc. (CRUS), Apple Inc. (AAPL): More Optimism Is Expected for This Small-Cap Tech Company

A potential venture between Apple Inc. (NASDAQ:AAPL) and China Mobile Ltd. (ADR) (NYSE:CHL), could further lift Apple’s share price. While China Mobile is aggressively pushing forward with its TD-LTE 4G development and expecting to receive a 4G license in China this year, there is a strong incentive for China Mobile to work out a deal with Apple soon. Apple is also urgently seeking a new growth driver. This leads to potential upsides for Cirrus Logic, Inc. (NASDAQ:CRUS), which remains a loyal supplier for Apple.

Bottom Line

Despite mixed first quarter earnings, Cirrus Logic, Inc. (NASDAQ:CRUS)’s share price may be ready for recovery as a result of Apple Inc. (NASDAQ:AAPL)’s upcoming positive developments. Furthermore, with Cirrus Logic’s diversification into LED lighting market, more growth potential is expected in the longer term. Based on its current valuation and the healthy balance sheet, the upside potential outweighs the downside risk at the current price for Cirrus Logic.

Nick Chiu has long positions in China Mobile. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple, China Mobile, and Cirrus Logic.

The article More Optimism Is Expected for This Small-Cap Tech Company originally appeared on Fool.com.

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