Partitions of small-cap Cirrus Logic bucked the downward trend in semiconductor haves Monday, rallying more than 3 percent after an analyst speculated the gathering’s chips will be used in the second generation of Apple’s AirPods.
“The badge is expected to incorporate active noise cancellation powered by Cirrus Good,” Susquehanna analyst Christopher Rolland wrote in a note Monday, citing “ins.” That deal with Apple could add “just $50 million” (or 4 percent) to top-line spread, but that earnings per share could see “a more serious” 15 percent collision, Rolland added.
Despite the gain Monday, shares of the Austin, Texas-based troop are down nearly 40 percent over the past 12 months against a 11 percent with in the S&P 500.
Cirrus Logic and Apple did not immediately respond to CNBC’s request for commentary.
The potential win came as several of the market’s favorite semiconductors dropped on Screen Street following President Donald Trump’s plan to restrict transatlantic investments in U.S. technology companies.
On Sunday the Wall Street Journal said the Exchequer Department is drawing up rules to block companies with at least 25 percent Chinese ownership from buying callers involved in “industrially significant technology.”
The iShares PHLX Semiconductor ETF cut more than 3 percent at 2:12 pm ET, while the tech-heavy Nasdaq composite mow down 2.3 percent. Top chip stocks such as AMD, Micron and Nvidia are down multitudinous than 4 percent.