Synaptics (SYNA) just rolled out its Astra SL2600 Series, a new line of multimodal Edge AI processors built for next-generation smart devices. This launch highlights innovation in Edge AI and positions the company for future industry growth.

Following the Astra SL2600 Series announcement, Synaptics has generated renewed attention in the market. The most recent 7-day share price return of nearly 12% stands out against a year-to-date decline of almost 16%, while its one-year total shareholder return is down just over 2%. Despite the recent momentum, longer-term returns have lagged. This reflects a mix of optimism for future growth and ongoing investor caution.

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With Synaptics’ stock rebounding after its product launch but still trading below analyst targets, investors face a key question: is there hidden value in its shares, or has the market already priced in its next wave of growth?

Most Popular Narrative: 15.6% Undervalued

Based on the most followed narrative, Synaptics’ fair value sits comfortably above its last close, suggesting room for upside even after this week’s post-launch surge.

“Synaptics' accelerated focus on Core IoT, evidenced by 53% YoY growth in FY25 and a strong pipeline of Wi-Fi 7 and Edge AI products, positions the company to benefit from the expanding proliferation of connected devices across industrial, enterprise, and consumer markets. This expansion should boost top-line revenue and reduce dependency on legacy markets.”

Curious what powers that double-digit undervaluation? The secret is bold predictions about future sales growth and a dramatic shift in margin potential if targets are hit. Wondering how Synaptics could defy past losses and re-rate on par with industry heavyweights? Uncover the earnings leap and margin turnaround driving this narrative’s higher target.

Result: Fair Value of $82.25 (UNDERVALUED)

However, the narrative could shift if Synaptics struggles to grow its customer base or faces continued competitive pressure. Either of these factors may limit gains.

Build Your Own Synaptics Narrative

If you see a different story in Synaptics’ numbers or want to dig deeper on your own terms, you can build your own thesis in just a few minutes. Do it your way.

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.

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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.