These Chipmakers Called Biggest Beneficiaries Of iPhone 16

Apple‘s (AAPL) iPhone 16 handsets will provide a business lift for a number of component suppliers. Cirrus Logic (CRUS) and Broadcom (AVGO) are the biggest beneficiaries, according to KeyBanc Capital Markets.

↑
X

NOW PLAYING
Finding What’s Being Rewarded In Every Market Cycle

Cirrus Logic will benefit from Apple using its parts for camera upgrades on the iPhone 16 series, KeyBanc analysts Brandon Nispel and John Vinh said in a client note late Monday. Apple introduced its latest handsets at a product launch event Monday.

“Positive implications” for Cirrus Logic include the iPhone 16 Pro upgrade to the tetraprism lens design, joining the Pro Max model, they said. Cirrus Logic also likely will provide the haptics driver for the new camera control button and controllers for new Ultra Wide cameras across the iPhone 16 family.

Meanwhile, Apple’s move to upgrade all iPhone 16 handsets to the Wi-Fi 7 standard will give a sales boost to Broadcom, they said.

The Apple event had “moderately positive implications” for Analog Devices (ADI) because it’s likely to make the force sensor for the camera control button, they said.

IPhone 16 Suppliers On IBD Tech Leaders List

Meanwhile, the iPhone 16 has “slightly positive implications” for Qualcomm (QCOM), Nispel and Vinh said. That’s because Qualcomm is likely to see increased radio-frequency chip content in the iPhone 16. Skyworks Solutions (SWKS) is seen losing RF content to Qualcomm this round, they said.

KeyBanc rates Analog Devices, Broadcom, Cirrus Logic and Qualcomm as overweight, or buy. The firm rates Skyworks as sector weight, or neutral.

Elsewhere in the Apple supply chain, Taiwan Semiconductor Manufacturing (TSM) is producing the A18 and A18 Pro chips for the iPhone 16 lineup. Those chips are made at 3-nanometer scale. The industry measures circuit widths on chips in nanometers, which are one-billionth of a meter.

Taiwan Semi on Tuesday reported sales for the month of August that were up 33% year over year in local currency, keeping it on track to meet third-quarter targets.

Apple, Broadcom and Cirrus Logic are on the IBD Tech Leaders list.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

YOU MAY ALSO LIKE:

Apple Intelligence Won’t Be Available For iPhone 16 Launch

Nvidia Gross Margin Concerns Are Overblown: Analyst

Broadcom Narrowly Beats Quarterly Targets, Disappoints With Sales Outlook

Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks

See Stocks On The List Of Leaders Near A Buy Point