First a message from our friends at Banyan Hill Publishing [ad] |
IDear Reader, |
Bloomberg just leaked details of a secret Apple initiative Steve Jobs personally set in motion before his death. |
Hidden inside Apple for more than a decade, this final vision from Steve Jobs is finally ready to see the light of day. |
Tim Cook, Apple's CEO, calls it: |
"Apple's Greatest Contribution to Mankind" |
And for good reason – this breakthrough technology could transform a $9 trillion industry virtually overnight. |
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(Click play for full details on this remarkable new tech) |
Yet very few investors have any clue what's coming next. |
While Wall Street fixates on iPhone sales, they're missing the secret partner – still trading around $30 a share – that sits at the very center of Apple's most disruptive innovation since the smartphone itself. |
And you have the rare opportunity to get in on the ground floor. |
To continue reading, click here... |
Regards,
Ian King
Chief Strategist, Strategic Fortunes |
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FEATURED ARTICLE |
Apple's "Secret" Stocks |
5 suppliers quietly riding Apple's machine — and why some look "cheap" anyway |
Hey there, bargain hunter — let's talk about a truth the market loves to ignore: |
Apple doesn't just print money for Apple.
It prints money for a small circle of companies that build the stuff Apple can't (or won't) build alone: leading-edge chips, radio frequency modules, audio components, and wireless brains that make an iPhone feel "magical." |
When investors say "I own Apple," what they usually mean is:
"I own the brand, the services flywheel, and the upgrade cycle." |
But Apple's supply chain offers a different kind of bet — often cheaper, often less loved, and sometimes with more upside-per-dollar when the cycle turns. |
Here's the catch (and why this works as a Cheap Investor idea):
Supply-chain stocks are routinely punished for being "too cyclical," "too concentrated," or "too boring." |
And that's exactly where mispricing can live. |
Below are five Apple-linked public stocks that fit the "secret stocks" framework, with concrete numbers, recent performance, analyst target ranges, and a Cheap Scorecard for each. |
These are not guaranteed winners. But they are the kinds of positions that look dumb in the moment — and smart later. |
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Before the list: the Cheap Investor rules for "Apple supplier" investing |
If you take nothing else from this piece, take this: |
Rule #1 — Don't buy suppliers like they're Apple.
Suppliers don't get Apple's brand moat or pricing power. They get volume, design wins, and margin pressure. |
Rule #2 — Concentration risk is real, but it's also a source of edge.
If Apple is 40%–80% of revenue, the stock can get irrationally discounted on fear — even if the business is still very profitable. |
Rule #3 — "Cheap" means mispriced versus normalized earnings power.
A supplier will always look expensive at peak earnings and cheap at trough earnings. The trick is to identify whether earnings are near a trough and the balance sheet can survive the wait. |
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The Cheap Investor "Secret Stocks" List |
1) Taiwan Semiconductor (TSM) |
The company that manufactures Apple's most important product: the chip brain |
Apple can design world-class silicon. But it still needs someone to manufacture it at the cutting edge. That "someone" is TSMC. |
What makes TSMC a supplier worth paying attention to isn't just Apple — it's the fact that TSMC sits at the center of both Apple and the AI buildout. |
That mix gives you something rare:
a supplier with scale + pricing power + demand tailwinds. |
The numbers that matter |
TSM is trading around $348.85 right now. Wall Street's average 12-month target sits near $381.67 (with a high cited up to $450 on MarketBeat's compilation). In a record Q3 2025, TSMC reported about $33.1B revenue, ~59.5% gross margin, and $14.77B net income.
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Why this could be "cheap" (relative to what it is) |
TSMC often trades like a "high-quality cyclical." But its position is closer to an infrastructure utility for advanced computing. |
If your mental model is still "chip cycle," you miss the point: |
Apple is still a massive anchor customer (multiple reports put Apple's revenue share in the low-to-mid 20% range historically). AI/HPC demand is now a structural demand curve — and in Q3 2025, HPC was a majority of wafer revenue in at least one widely reported breakdown.
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What could go wrong |
Geopolitical risk premium is permanent. Capex intensity is enormous; any demand hiccup creates volatility. AI demand dominance could shift customer concentration away from Apple over time (not necessarily bad, but it changes the narrative).
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Cheap Scorecard (1–10) |
Valuation vs quality: 7 Balance sheet resilience: 8 Moat durability: 10 Near-term volatility risk: 6 "Mispricing" potential: 7
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2) Qualcomm (QCOM) |
Apple exposure is a risk… but that's why the stock can get discounted |
Qualcomm is one of the most misunderstood "Apple ecosystem" trades. |
Why? Because investors hear "Apple is building in-house modems," and assume Qualcomm's future is a straight line down. |
Reality: it's messy, slow, and the company is diversified across Android premium tiers, autos, and now data center AI ambitions. |
The numbers that matter |
QCOM is around $137.34. Consensus target averages about $167.68, implying meaningful upside on the current print. In the December quarter, Qualcomm reported $12.25B revenue and $3.50 EPS (beats), but guided next-quarter revenue to $10.2–$11B, below consensus — a key reason the stock sold off.
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Why this could be "cheap" |
This is where the Cheap Investor mindset kicks in: |
The market tends to price Qualcomm as if: |
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But even cautious reporting notes Apple represented about $8.8B of Qualcomm's fiscal 2025 revenue in some estimates and commentary — large, yes, but also not the whole enterprise. |
When fear rises, the valuation discount can overshoot. |
Also important: Qualcomm's weakness right now is partly tied to a memory supply constraint that pressures handset builds — which is cyclical and can normalize. |
What could go wrong |
Apple modem transition accelerates faster than expected. Smartphone units stagnate longer due to component shortages and pricing. Competitive pricing pressure erodes margins.
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Cheap Scorecard (1–10) |
Valuation discount vs narrative: 8 Balance sheet resilience: 7 Moat durability: 7 Customer concentration risk: 5 "Mispricing" potential: 8
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3) Skyworks Solutions (SWKS) |
When Apple sneezes, Skyworks catches pneumonia — and that's where "cheap" sometimes hides |
Skyworks is one of the purest "Apple supplier" stocks you can buy. That's both the opportunity and the hazard. |
The numbers that matter |
SWKS is around $62.10. Average target: about $70.50 (MarketBeat compilation). Apple accounted for 72% of Skyworks' revenue in one referenced quarter (a jaw-dropping concentration figure). Skyworks recently posted EPS $1.54 vs $1.40 est. on $1.04B revenue, plus improved guidance in a MarketBeat recap.
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Why this could be "cheap" |
Skyworks gets punished because investors fear: |
Apple in-sourcing RF content shifts unit declines
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But "cheap" can show up when: |
the market prices in a worst-case share loss, while the business remains profitable and cash-generative, and the downside scenario is already partially priced.
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You're not buying Skyworks to be "right about iPhone."
You're buying it when expectations are low enough that stability becomes a catalyst. |
What could go wrong |
Apple shifts RF content to competitors faster than expected. Android recovery fails to offset Apple exposure. Margin compression persists.
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Cheap Scorecard (1–10) |
Valuation discount vs fear: 8 Balance sheet resilience: 7 Moat durability: 6 Concentration risk: 3 "Mispricing" potential: 8
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4) Qorvo (QRVO) |
The "other RF supplier" — often hated at the exact moments it becomes interesting |
Qorvo is similar to Skyworks in that it's heavily tied to smartphone RF content, with Apple frequently described as its largest customer. |
But Qorvo has a different mix (including defense/infra exposure and power management), and its stock can whip around violently on guidance. |
The numbers that matter |
QRVO is around $83.72. Consensus target: $93.56 average. Recent quarter: Qorvo reported $993.0M revenue, 46.7% gross margin, and $192.1M operating income (GAAP), per its release. A Barron's recap noted Qorvo beat a quarter but guided the next quarter below Street expectations (classic "beat/guide down" pain trade).
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Why this could be "cheap" |
These are the setups Cheap Investors hunt: |
the stock gets hit on guidance (short-term), but the company still shows real profitability and margin structure, and the market's imagination goes negative.
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If the smartphone cycle stabilizes and RF content remains sticky, QRVO's multiple can normalize quickly. |
What could go wrong |
Handset softness extends due to component constraints. Apple design changes reduce content per device. Management execution misses on margin recovery.
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Cheap Scorecard (1–10) |
Valuation discount vs whiplash: 7 Balance sheet resilience: 7 Moat durability: 6 Guidance volatility: 4 "Mispricing" potential: 7
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5) Cirrus Logic (CRUS) |
Apple audio is boring… and boring is where returns get made |
Cirrus Logic is the definition of a "secret stock":
Most people don't know what it does — but Apple customers feel it every time they listen. |
Cirrus is deeply tied to Apple's audio and mixed-signal components. The concentration is high, and that scares investors. But high concentration also means: if Apple demand is steady, Cirrus can be a cash machine. |
The numbers that matter |
CRUS is around $142.78. Average target: $145.43 (range $110 to $163). Apple represented roughly 87% of Cirrus revenue in fiscal 2024 per one summary. In one recent report recap, Cirrus posted 26% earnings growth and 4% revenue growth in a quarter (IBD).
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Why this could be "cheap" |
Cirrus often trades as if: |
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But "cheap" shows up when: |
the market prices concentration risk twice, while the company keeps posting resilient margins, buybacks, and steady earnings.
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Also: Apple's product cadence can quietly lift Cirrus content with upgrades (audio features, haptics, etc.). It doesn't need a "supercycle" — it needs normalcy. |
What could go wrong |
Apple reduces content or switches suppliers. A single iPhone cycle disappoints and hits volumes. Concentration risk becomes reality rather than perception.
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Cheap Scorecard (1–10) |
Valuation vs stability: 7 Balance sheet resilience: 8 Moat durability: 7 Concentration risk: 3 "Mispricing" potential: 6
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The Cheap Investor Action Plan |
If you're building an "Apple secret stocks" basket, don't do it like a gambler. Do it like a bargain hunter with a checklist. |
Step 1: Build a 2-tier basket |
Core (lower drama): TSM, QCOM Satellite (higher upside, higher volatility): SWKS, QRVO, CRUS
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Step 2: Scale in over time |
These names can be volatile around: |
iPhone demand headlines guidance resets supply chain constraints
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So don't swing at once. Accumulate. |
Step 3: Watch 3 simple signals |
iPhone demand tone (stabilizing vs weakening) gross margin trend in supplier earnings analyst target trend (are targets stabilizing, rising, or being cut?)
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investing involves risk, including the potential loss of principal. Always do your own research before making investment decisions. |
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