Is Synaptics (SYNA) Shifting Its Competitive Edge With Surging IoT Growth and New AI Launch?

• On November 6, 2025, Synaptics Incorporated reported first-quarter revenue of US$292.5 million and a net loss of US$20.6 million, reflecting improved sales and a narrowed loss year-over-year.
• A significant highlight was a 74% annual increase in Core IoT revenue, fueled by the launch of Astra Edge AI processors and expanded design wins in key markets.
• We'll explore how Synaptics' strong Core IoT growth and new AI processor launch could influence its future business outlook.

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Synaptics Investment Narrative Recap

If you are considering Synaptics as an investment, the key story centers on its ability to scale Core IoT and AI-edge solutions, shifting away from legacy areas. The strong jump in Core IoT revenue and new Astra Edge AI processor launch are positives, but short-term momentum still depends most on execution in broadening customer adoption; the main risk remains whether Synaptics can successfully ramp its new solutions while managing channel expansion efficiently, recent events do not materially reduce this risk.

Among the company’s recent moves, the launch of its Astra SL2600 IoT Edge AI processors stands out. This product directly supports Synaptics’ focus on capturing growth from next-gen IoT and AI applications, aligning with management’s stated catalyst of expanding higher-ROI offerings and improving design win rates in new markets.

However, investors should also be aware, despite recent highlights, the early-stage expansion of Synaptics’ sales channels and customer base remains a material challenge...

Read the full narrative on Synaptics (it's free!)

Synaptics' outlook anticipates $1.4 billion in revenue and $199.2 million in earnings by 2028. This is based on a 9.6% annual revenue growth rate and an increase in earnings of $247 million from the current level of -$47.8 million.

Uncover how Synaptics' forecasts yield a $82.25 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members currently estimate Synaptics’ fair value between US$54.15 and US$84.49 across five independent views. While many see growth opportunities in AI-powered IoT, slow channel expansion could weigh on future results, so compare these perspectives before forming your own view.

Explore 5 other fair value estimates on Synaptics - why the stock might be worth as much as 28% more than the current price!

Build Your Own Synaptics Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Synaptics research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Synaptics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Synaptics' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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