Synaptics Worth A Look As IoT Grows And Margins Recover
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Stephen Simpson20.55K FollowersFollow5ShareSavePlay(9min)CommentsSummarySynaptics is pivoting toward AI-native IoT solutions, highlighted by Astra processors and collaborations with Google and Broadcom.Legacy segments remain challenged, and between weaker legacy lines and a lack of commercial scale in new business, operating margins remain well off prior highs.I anticipate revenue growth acceleration and margin recovery as IoT edge-AI and communications offerings gain traction and legacy markets stabilize.SYNA appears undervalued below the mid-$80s, with fair value in the high-$80s to low-$90s if high-teens operating margins are achieved. Sumedha Lakmal/iStock via Getty Images Times have been tougher for semiconductor companies not strongly leveraged to datacenter/AI spending, and that includes Synaptics Incorporated (SYNA), as growth in the IoT business has been offset by weakness in legacy mobile, auto, andThis article was written byStephen Simpson20.55K FollowersFollowStephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).Analyst’s Disclosure:I/we have a beneficial long position in the shares of AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.