Synaptics has maintained a perfect four-quarter earnings beat record and trades at a low price-to-sales multiple relative to semiconductor peers, but high short interest of 20% and a quality score just below the minimum threshold reflect real concerns about operating profitability and return metrics.
Thesis pillars
- Quality Below Floor Concern→Stable
- High Short Interest Signal↑Improving
- Four Quarter Earnings Beat Record↑Improving
- +1 more pillar — see the Why tab for full reasoning
Synaptics Incorporated (SYNA) Stock Analysis
Breakout setup
Technology · Semiconductors
Sell if holding. Engine safety override at $102.52: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: High short interest: 11%; Below-average business quality.
Synaptics designs and sells AI-enabled edge semiconductor solutions — touch, display, biometrics, wireless (Veros), and processor (Astra) products — as a fabless supplier to OEMs and ODMs in mobile, PC, IoT, and automotive markets. The company draws a significant portion of... Read more
Sell if holding. Engine safety override at $102.52: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: High short interest: 11%; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 54, MACD bullish. Score 5.2/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 41d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Synaptics Incorporated
About Synaptics Incorporated
Synaptics operates a fabless semiconductor model, depending on third-party, predominately Asia-based contract manufacturers and fabricators to produce chips across its Astra AI processor, Veros wireless connectivity, and Natural ID biometric product families, plus more than 500 touch-related patents supporting its mobile touch business. A significant portion of revenue comes from a limited number of large OEM and ODM customers, a concentration the company says makes it highly dependent on the purchasing behavior of a few buyers.
Synaptics sells its semiconductor solutions to OEMs and ODMs, often through their contract manufacturers, supply chain partners, or distributors, who place purchase orders, take title on delivery, and pay Synaptics directly; the company reaches customers through direct sales employees, outside sales representatives, distributors, and value-added resellers. Its fabless model outsources silicon wafer fabrication to third-party manufacturers and packaging and test to third-party processors, keeping capital expenditures and working capital requirements low and deferring most manufacturing costs until products ship and are invoiced. In January 2025 Synaptics acquired assets and non-exclusive licenses to Broadcom's Wi-Fi technology, including licenses to three developed technologies and rights to eight roadmap technologies through September 2027, intended to accelerate its Edge AI strategy and expand the Veros wireless roadmap to Wi-Fi 8, Wi-Fi 7, UWB, and GPS/GNSS products. Key inputs — silicon wafers, substrates, and packaging materials — are sourced from a limited number of foreign suppliers, and the company generally provides contract manufacturers only six-month rolling forecasts rather than long-term capacity commitments.
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A regulatory cliff sits on top of Synaptics' Asia-heavy supply chain: on August 6, 2025 the U.S. government proposed a 100% tariff on imported semiconductors and chips, with possible exemptions only for companies that invest in U.S. manufacturing, a policy the 10-K says could materially impact sourcing strategy and component costs if adopted since Synaptics relies on global foundry partners, many based in Asia, for a significant portion of its silicon. Separately, expanded U.S. export restrictions on China and Russia — covering foreign-produced items, advanced technologies, and the Entity List — could bar Synaptics from serving affected customers, who the filing says may then turn to domestic solutions or competitors not subject to the same restrictions.
See also: Technology · Semiconductors
From Synaptics Incorporated's most recent 10-K filing, extracted August 30, 2026.
Recent developments
updated 2026-09-25Recent Developments — Synaptics Incorporated
Latest news
- NEWS Akamai, Atlas Energy Solutions, People And Other Big Stocks Moving Higher On Friday — benzinga Sep 25, 2026 positive
- NEWS 5 Stocks In The Spotlight Last Week: Wall Street's Most Accurate Analysts Weigh In — benzinga Sep 21, 2026 neutral
- NEWS ON Semiconductor CEO Dismisses AI Slowdown Fears — benzinga Sep 17, 2026 neutral
- NEWS Qnity Hires Former Synaptics CFO Ken Rizvi — benzinga Aug 21, 2026 neutral
- NEWS Synaptics CFO Resigns, Company Skips Successor Search Before Merger — benzinga Aug 21, 2026 negative
Generated 2026-09-25T19:42:08Z.
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Thesis
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Quality Signals
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Rating Breakdown
3 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Unprofitable operations — net margin -41.0%. Quality floor flags this regardless of sector context.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $102.52: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: High short interest: 11%; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 54, MACD bullish. Prior stop was $95.34. Score 5.2/10, moderate confidence.
Take-profit target: $113.39 (+10.6% upside). Prior stop was $95.34. Stop-loss: $95.34.
Quality below floor (2.8 < 4.0).
Synaptics Incorporated trades at a P/E of N/A (forward 14.7). TrendMatrix value score: 6.4/10. Verdict: Sell.
19 analysts cover SYNA with a consensus score of 3.6/5. Average price target: $130.
What does Synaptics Incorporated do?Synaptics designs and sells AI-enabled edge semiconductor solutions — touch, display, biometrics, wireless (Veros), and...
Synaptics designs and sells AI-enabled edge semiconductor solutions — touch, display, biometrics, wireless (Veros), and processor (Astra) products — as a fabless supplier to OEMs and ODMs in mobile, PC, IoT, and automotive markets. The company draws a significant portion of revenue from a limited number of large OEM/ODM customers and depends on third-party, predominately Asia-based contract manufacturers and fabricators to produce its chips.