Synaptics Incorporated’s (SYNA) Market to Expand with AI on the Edge

Synaptics Incorporated (NASDAQ:SYNA) is one of the 10 Most Undervalued Semiconductor Stocks to Invest in. On December 11, Barclays’ analyst Thomas O’Malley reaffirmed his Buy rating on the company with a price target of $78. Synaptics Incorporated (NASDAQ:SYNA) enjoys a consensus Buy rating with a median upside potential of 6.9%.

The upside also received a boost on December 5 when Northland Capital Markets initiated coverage of the company with a Strong Buy rating. The coverage highlighted SYNA’s forward earnings estimates, where the research firm expects FY26 earnings of $1.11 and FY27 earnings of $1.92.

While the stock’s 6% YTD decline has kept the shares undervalued, the outlook looks bright if management’s guidance is anything to go by. Even this year, the company’s revenue growth was driven by its Core IoT portfolio, which grew 74% YoY. The growth is expected to continue, as per CEO Rahul Patel, who mentioned the next-generation Synaptics Astra Edge AI processors, which are going to power the next generation of computing at the edge.

“Astra introduces a new class of AI-native silicon, built from the ground up to power the next wave of intelligent devices at the Edge.”

The company’s intentions to target this emerging market are what make it an exciting and undervalued play to bet on. The CEO noted that while the company is currently relying on existing markets, once AI on the Edge becomes the norm, SYNA’s market will expand significantly.

“Our big area of focus right now is to tap into the existing markets. However, on a going-forward basis, as AI… comes to the far end of the Edge… we see our marketplace expanding dramatically.”

Synaptics Incorporated (NASDAQ:SYNA) is a semiconductor equipment maker that develops products like displays, touch systems, biometrics, audio, wireless, and voice processing for various devices. It was founded in 1986 and is based in San Jose, California.

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Disclosure: None. This article is originally published at Insider Monkey.