Synaptics (SYNA) AI Stock Analysis

• Market Cap: $2.75B
• Dividend Yield: N/A
• Average Volume (3M): 737.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: 13.24%
• EPS Growth: -129.14%
• Country: US
• Employees: 1,716
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.21
• Shares Outstanding: 38,729,740
• 10 Day Avg. Volume: 754,117
• 30 Day Avg. Volume: 737,314
• PEG Ratio: 0.39
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 23.97
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 2.77
• Enterprise Value/Gross Profit: 6.42
• Enterprise Value/Ebitda: 34.62
• 1Y Price Target: $102.40
• Price Target Upside: 44.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 4.43
• Revenue Forecast (FY): $1.19B

• Rating: 61 Neutral
• Price Target: $75.00 ▲(5.59% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by weak profitability (loss-making TTM) despite improving cash flow, while supportive technical momentum and a generally positive earnings call (execution and IoT growth) provide offsets. Valuation remains a constraint due to the negative P/E and lack of dividend yield data.

Positive Factors

Core IoT revenue growth

Sustained 53% YoY growth in Core IoT signals durable demand for Synaptics' connectivity solutions and shifts revenue toward a higher-growth, higher-value segment. This improves product mix, supports recurring design wins across IoT customers, and strengthens long-term revenue diversification beyond mobile and PC.

Positive cash generation and liquidity

Consistent positive operating and free cash flow provides financial flexibility to fund R&D, product sampling, and targeted capital allocation without heavy reliance on external financing. Over 2–6 months this supports execution of product roadmaps and disciplined buybacks or reinvestment while absorbing cyclical variability.

Product traction and integrated Edge AI roadmap

Sampling of Astra processors and a clear Wi‑Fi/Bluetooth roadmap indicate tangible product progress and early design traction. Integration of processors and connectivity builds a differentiated platform for Edge AI, improving long-term pricing power and creating higher switching costs for OEMs if execution continues.

Negative Factors

Negative profitability and returns

TTM negative operating and net margins and a negative ROE indicate the company has yet to consistently convert gross profitability into operating profits. Persistent loss-making reduces reinvestment capacity and the balance sheet's ability to compound value until operating leverage is restored.

Rising inventory and working-capital build

A deliberate inventory build increases working-capital intensity and ties cash to stock that risks obsolescence in semiconductor cycles. Over months this can pressure liquidity, reduce cash returns, and amplify margin downside if end-market demand softens or product mix shifts unfavorably.

Timing risk for Astra revenue contribution

Key next‑generation Edge AI products (Astra) are multi-quarter-to-multi-year revenue opportunities, delaying material upside. This extends execution risk and means near-term growth must come from existing lines; any delays or slower adoption push out the anticipated margin and revenue benefits.

Synaptics Business Overview & Revenue Model

Company Description

Synaptics Incorporated develops, markets, and sells semiconductor product solutions worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes or over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in automobiles, notebook personal computers (PCs), PC peripherals, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.

How the Company Makes Money

Synaptics makes money primarily by selling semiconductor chips and related software/firmware solutions to original equipment manufacturers (OEMs) and device makers, either directly or through distributors. Revenue is generally recognized from product sales of its ICs (and associated software/firmware value) that enable features such as touch input, fingerprint/biometric functions, display interfacing, and device connectivity (e.g., Wi‑Fi/Bluetooth and other connectivity components, depending on the product line). Key revenue streams typically include: (1) human interface products (e.g., touch controllers and related interface ICs/software) sold into PCs and other devices; (2) connectivity products (wireless and wired connectivity solutions) sold into IoT, consumer electronics, and embedded applications; and (3) other mixed-signal interface solutions sold across end markets. The company’s earnings are influenced by design wins in customer platforms, unit volumes of customers’ end products, product mix (higher-value integrated solutions vs. discrete components), and pricing/competition in semiconductor markets. Synaptics also relies on external silicon foundries and outsourced assembly/test providers to manufacture its chips; while these are essential to delivering products, specific revenue-sharing arrangements with such partners are not publicly detailed in a way that can be stated generically here without risking inaccuracy, so they are null.

Synaptics Financial Statement Overview

Summary

Mixed fundamentals: modest TTM revenue growth and clearly improving free cash flow support stability, but the income statement is the key drag with negative operating and net margins and negative ROE despite a more manageable leverage profile.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up (about +3.2%), showing modest top-line stabilization after prior declines. However, profitability is weak: the company is operating at a loss (negative operating margin and negative net margin in TTM), and results have deteriorated versus the prior year when net income was positive (FY2024). Gross margin remains solid for the group, but the core issue is that operating costs are outweighing gross profit, pressuring earnings quality and visibility.

Balance Sheet

Leverage appears manageable with debt at roughly two-thirds of equity (debt-to-equity around 0.63 in TTM), an improvement from higher leverage in earlier years. Equity is still meaningful relative to total assets, supporting balance-sheet flexibility. The key weakness is returns: return on equity is negative in TTM, reflecting the current loss-making profile and reducing the balance sheet’s ability to compound value until profitability improves.

Cash Flow

Cash generation is a relative bright spot: TTM operating cash flow and free cash flow are both positive, and free cash flow improved sharply versus FY2024 (which was negative). That said, cash conversion is not perfect—operating cash flow is only about 70% of net income in TTM (indicating weaker cash conversion relative to accounting results), and the free-cash-flow-to-net-income figure is less supportive given net income is negative. Overall, liquidity looks better than earnings suggest, but consistency remains a watch item.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.14B	1.07B	959.40M	1.36B	1.74B	1.34B
Gross Profit	493.60M	480.40M	439.80M	715.90M	943.10M	611.20M
EBITDA	91.50M	69.40M	49.90M	339.30M	498.20M	289.90M
Net Income	-61.90M	-47.80M	125.60M	73.60M	257.50M	79.60M
Balance Sheet
Total Assets	2.56B	2.58B	2.83B	2.61B	2.86B	2.23B
Cash, Cash Equivalents and Short-Term Investments	437.40M	452.50M	876.90M	934.30M	876.00M	836.30M
Total Debt	836.00M	880.20M	1.07B	1.03B	1.04B	914.80M
Total Liabilities	1.18B	1.19B	1.36B	1.37B	1.59B	1.26B
Stockholders Equity	1.38B	1.39B	1.47B	1.24B	1.27B	967.20M
Cash Flow
Free Cash Flow	144.80M	106.20M	-31.70M	297.30M	401.60M	298.10M
Operating Cash Flow	190.60M	142.00M	135.90M	331.50M	462.70M	319.20M
Investing Cash Flow	-246.10M	-297.90M	-157.70M	-6.00M	-482.70M	-522.60M
Financing Cash Flow	-104.30M	-331.40M	-25.10M	-221.30M	14.30M	274.10M

Synaptics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYNA, the sentiment is Negative. The current price of 71.03 is below the 20-day moving average (MA) of 76.45, below the 50-day MA of 82.52, and below the 200-day MA of 72.25, indicating a bearish trend. The MACD of -2.92 indicates Positive momentum. The RSI at 33.05 is Neutral, neither overbought nor oversold. The STOCH value of 26.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYNA.

Synaptics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIOD	73 Outperform	$2.97B	34.57	3.55%	―	10.45%	4.37%
FORM	73 Outperform	$7.19B	82.61	5.43%	―	2.29%	-69.81%
SIMO	73 Outperform	$4.21B	4.07	15.21%	2.22%	-2.26%	9.74%
POWI	64 Neutral	$2.58B	90.19	3.17%	2.27%	10.50%	-52.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYNA	61 Neutral	$2.75B	-48.27	-4.45%	―	13.24%	-129.14%
VSH	55 Neutral	$2.26B	-219.07	-0.43%	2.67%	-0.84%	-189.44%

Synaptics Corporate Events

Synaptics Adds Independent Director to Strengthen Board Oversight

Synaptics has expanded its board of directors from eight to nine members and appointed Venkatesh (Venk) Nathamuni as an independent director and Audit Committee member, effective January 1, 2026, a move announced in a January 5, 2026 press release following the board’s December 29, 2025 decision. Nathamuni, currently Executive Vice President and Chief Financial Officer of Jacobs Solutions and a seasoned semiconductor and finance executive with more than three decades of leadership experience, is deemed an audit committee financial expert under SEC rules and will receive standard non-employee director compensation, reinforcing Synaptics’ financial oversight, governance capabilities, and strategic focus as it pursues its growth plans in AI-driven semiconductor markets.

The most recent analyst rating on (SYNA) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Synaptics stock, see the SYNA Stock Forecast page.