Shares of small-cap Cirrus Logic bucked the downward trend in semiconductor stocks Monday, rallying more than 3 percent after an analyst speculated the company’s chips will be used in the second generation of Apple’s AirPods.

“The device is expected to incorporate active noise cancellation powered by Cirrus Logic,” Susquehanna analyst Christopher Rolland wrote in a note Monday, citing “contacts.” That deal with Apple could add “just $50 million” (or 4 percent) to top-line growth, but that earnings per share could see “a more serious” 15 percent bump, Rolland added.

Despite the gain Monday, shares of the Austin, Texas-based company are down nearly 40 percent over the past 12 months against a 11 percent gain in the S&P 500.

Cirrus Logic and Apple did not immediately respond to CNBC’s request for comment.

The potential win came as several of the market’s favorite semiconductors dropped on Wall Street following President Donald Trump’s plan to restrict foreign investments in U.S. technology companies.

On Sunday the Wall Street Journal said the Treasury Department is drawing up rules to block companies with at least 25 percent Chinese ownership from buying companies involved in “industrially significant technology.”

The iShares PHLX Semiconductor ETF fell more than 3 percent at 2:12 pm ET, while the tech-heavy Nasdaq composite fell 2.3 percent. Top chip stocks such as AMD, Micron and Nvidia are down more than 4 percent.