Synaptics (SYNA) — A Quiet Pivot Toward Edge Computing Creates a Compelling Setup
Synaptics trades around $73, and from where we sit, the setup heading into 2026 looks increasingly attractive as the company completes a meaningful transition in its business model.
For years, Synaptics was best known as a supplier of chips and components for mobile phones and PCs. That legacy exposure is precisely why the stock has lagged this year, down roughly 4% year to date. But that backward-looking view misses what is actually changing inside the company. Synaptics is repositioning itself as an Internet of Things semiconductor provider, with a growing focus on on-device, or “edge,” computing.
That shift matters. Edge devices such as smart appliances, wearables, and always-on connected hardware require local processing power, wireless connectivity, and low-latency performance. Synaptics is building directly into that demand with its Astra AI-native embedded compute platform, which provides the processing hardware and tools needed to run AI workloads directly on devices rather than in the cloud.
The opportunity is not small. Using Gartner data, the addressable edge AI compute market is estimated at roughly $5 billion in 2025, with expectations for 30% compound annual growth through 2029, pushing the market north of $13 billion. That kind of growth runway helps explain why the company’s pipeline is becoming a focal point for investors.
A key catalyst here is Synaptics’ partnership with Google, announced in January 2025, which integrates Google’s open-source machine learning core into the Astra hardware platform. Early customer samplings have already resulted in design wins, with initial revenue expected in the second half of 2026. That timing lines up well with the company’s broader transition and gives investors a clear milestone to watch.
While this write-up reflects our own view of the setup, it’s worth noting that Wells Fargo initiated coverage with an Overweight rating and a $95 price target, implying roughly 29% upside from recent levels. The firm highlighted the same edge IoT transition and Astra platform traction as key drivers. More broadly, analysts remain constructive, with the majority rating the stock a buy.
Taken together, Synaptics offers an interesting mix of near-term skepticism and longer-term optionality. The market still prices the company largely as a legacy mobile and PC supplier, while its fastest-growing opportunities sit in a market expanding at a double-digit pace. As pipeline updates turn into revenue over the next 12 to 18 months, that disconnect could start to close.
