James Altucher is back with another Apple supplier prediction. This time, through his Microcap Millionaire newsletter, he's teasing a sub-$1 billion company that he believes could benefit enormously as Apple moves more of its AI processing and chip development in-house.

The mystery stock: CEVA (NASDAQ: CEVA)

CEVA doesn't manufacture chips. It licenses semiconductor designs and intellectual property, then collects royalties when its technology ends up inside devices and Apple is the interesting part. Apple has been developing its own modem chips to reduce its dependence on Qualcomm, and CEVA technology has reportedly played a role in that effort. Apple's first C1 modem already appeared in the iPhone 16e.

The potential catalyst is what comes next. If Apple expands its internally designed modem across significantly more iPhones — and eventually other devices — CEVA could collect royalties across a MUCH larger installed base. CEVA also has technology for neural processing units, wireless connectivity and on-device AI, so the opportunity potentially extends beyond just the modem.

Altucher is predictably going nuts with the numbers, suggesting the stock could eventually rise 23,000%+. I'm definitely not buying that prediction. CEVA's revenue has basically gone nowhere for years, its existing relationship with Apple hasn't produced a royalty explosion yet, and the stock is already priced for substantial future earnings growth.

But there is an interesting setup underneath all the hype, Apple wants to control more of the technology inside its devices. CEVA owns IP Apple may need to accomplish that. If Apple's internally designed chips start appearing across hundreds of millions of devices, CEVA suddenly becomes a much more interesting company.

This is one I'll be watching rather than chasing before Apple's announcement.