Core Thesis - Synaptics Incorporated (SYNA) is positioned as a high-conviction turnaround story, driven by accelerating earnings growth and a strategic pivot toward Edge AI and wireless connectivity [1][4] Company Overview - Synaptics is headquartered in San Jose and designs semiconductors for various markets including mobile, PC, smart home, industrial, and automotive [1] - The company operates under a fabless model, focusing on R&D and platform design, serving as a strategic silicon and software partner to global OEMs [2] Financial Performance - After a challenging fiscal 2024, Synaptics has returned to strong profitability with earnings growth of 35-70% year-over-year, supported by a 74% surge in Core IoT sales [3] - Revenue growth has stabilized in the low teens, with a manageable debt ratio of 0.32 and healthy liquidity [3] - Negative free cash flow in seven of the last eight quarters is attributed to elevated R&D spending and acquisition-related integration costs [3] Valuation and Market Position - SYNA is trading at discounts to semiconductor peers on P/S and EV/Sales metrics, despite a reasonable P/E of 22.9x [4] - The bull case relies on the successful integration of Broadcom's wireless assets, margin expansion toward 15%+ by FY2027, and increasing adoption of Astra silicon as Edge AI demand grows [4] - Analysts maintain a broadly bullish outlook with price targets clustered around $95–$106, indicating potential asymmetric upside as AI transitions from cloud to edge [4]