Synaptics Pivots to AI Chips for IoT Devices As Smartphone Sales Slow

Synaptics is a mobile chip supplier for Apple that has underperformed peers due to slowing iPhone growth and excess inventory.
Synaptics is pivoting to 'edge AI' chips for IoT devices and expects 12% annual growth through 2027.
Synaptics has reduced its smartphone chip exposure from 80% to 20% of revenue.
Share price is down but trades at 27x forward earnings due to growth potential.
Key focus areas are sensing, processing, and connectivity chips to capitalize on spatial computing trend.

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Posted 10/1/2023, 4:05:00 PM