Will Cirrus Logic's (CRUS) Automotive-Grade Haptics Launch Redefine Its Diversification Narrative?

• In December 2025, Cirrus Logic launched its first AEC-Q100 automotive-qualified closed-loop haptic drivers, the CS40L51, CS40L52 and CS40L53, aimed at delivering high-definition tactile feedback across in-cabin interfaces such as displays, steering wheels and smart surfaces.
• This move extends Cirrus Logic’s haptics expertise from consumer electronics into automotive, potentially opening a new end market where consistent, premium tactile user experiences are becoming a key interior design differentiator for automakers.
• We’ll now examine how Cirrus Logic’s AEC-Q100-qualified automotive haptics launch could reshape its diversification-focused investment narrative and long-term opportunities.

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Cirrus Logic Investment Narrative Recap

To own Cirrus Logic, you need to believe its core smartphone audio business can stay resilient while newer mixed signal niches in PCs and autos gradually matter more. The new AEC Q100 automotive haptic drivers support that diversification story, but are unlikely to change the near term reality that customer concentration in smartphones remains the biggest swing factor for results.

The recent US$500 million share repurchase program, with over US$445 million already deployed, is the clearest related development for shareholders, as it amplifies the effect of any future diversification success on per share earnings. At the same time, committing this level of capital to buybacks means misjudging demand trends or overestimating the pace at which new markets like automotive scale could increase the financial strain if growth disappoints.

Yet investors should also weigh how heavily Cirrus Logic still leans on a small group of smartphone customers...

Read the full narrative on Cirrus Logic (it's free!)

Cirrus Logic's narrative projects $1.9 billion revenue and $295.7 million earnings by 2028. This implies a 0.3% yearly revenue decline and an earnings decrease of $54.4 million from $350.1 million today.

Uncover how Cirrus Logic's forecasts yield a $140.00 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates span about US$92 to US$253 per share, showing how far opinions can stretch on Cirrus Logic. Against that backdrop, the tension between meaningful diversification efforts and ongoing customer concentration risk in smartphones is central to how you might interpret the company’s future earnings resilience and explore alternative views.

Explore 3 other fair value estimates on Cirrus Logic - why the stock might be worth over 2x more than the current price!

Build Your Own Cirrus Logic Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cirrus Logic research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Cirrus Logic research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cirrus Logic's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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