Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL) Is Back: That’s Great News For These Stocks

To be sure, Apple works with other vendors, such as Synaptics, Incorporated (NASDAQ:SYNA) and Atmel Corporation (NASDAQ:ATML), but Cypress Semiconductor Corporation (NASDAQ:CY) is especially well-positioned to deliver a greater amount of content to Apple.

“Cypress can leverage its manufacturing assets and processes to help optimize cost for performance and best serve the highest volume opportunities,” said analysts at Lazard, whose $16 price target is more than 40% above current levels. Lazard’s analysts speculate that Cypress may play a key role in Apple’s upcoming iWatch launch.

Shares of Cypress Semiconductor Corporation (NASDAQ:CY) have been in the doghouse for an extended period, dropping 25% over the past two years while the Nasdaq composite index rose more than 40%. Much of the blame goes to a bungled launch of its previous touchscreen technology, known as Gen 4.

In recent meetings with analysts, Cypress management noted that the current Gen 5 hardware and software are performing more smoothly. The company anticipates robust demand in the coming year as Gen 5 systems start to ship to customers.

At first blush, Cypress looks to be a great dividend growth story. The company’s dividend was given a 63% boost in 2012 to $0.44 a share, good for a nearly 4% yield. But management appears committed to keeping the divided at current levels for the near future, even as analysts see earnings per share rising from $0.54 this year to $0.85 next year.

Risks to Consider: A disappointing launch of Apple’s new products, or a broader slowdown in consumer electronics spending would keep these stocks from rising.

Action To Take–> Both of these companies generate considerable cash flow, sport strong balance sheets and generate solid margins. Short-term investors focus on quarter-to-quarter trends, but both Cirrus and Cypress are setting the stage for continued industry leadership through their heavy R&D spending.

P.S. — Regardless of whether Apple’s iWatch creates an entirely new market for wearable computers, when you get in on the ground floor of a promising new trend or technology, the profits that can follow can change your life forever. Andy Obermueller’s Game-Changing Stocks is devoted to finding the next life-changing investing idea. Click here for more groundbreaking investment plays.

– David Sterman

The article Apple Is Back: That’s Great News For These 2 Stocks originally appeared on StreetAuthority and is written by David Sterman.

David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.

Warren Buffett’s Top 5 Stocks
Buffett’s firm, Berkshire Hathaway, holds dozens of stocks. But these five make up 75% of its portfolio… worth $65 billion. Click here to get Buffett’s top 5 stocks plus his 16 latest buys, FREE.


DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.