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Here's Why Synaptics Looks Like a Smart Investment for the Long Run

August 20, 2014 | About:

Synaptics (NASDAQ:SYNA) looks like the following hot pick in the semiconductor industry. The Samsung supplier is now up handsomely in 2014; however its prospects show that there is a whole other world to come. Also, Synaptics' late acquisition of Renesas has opened new possibilities as it may turn into an Apple (AAPL) supplier now.

The organization is required to release its results for the final quarter at the end of July. Determined by development in biometric solutions, vast touchscreen display coordination, and expansion in China, Synaptics is relied upon to report solid results.

Solid development is normal

Synaptics' final-quarter revenue is normal in the scope of $300 million-$310 million, up from its previous direction of $275 million to $295 million. This will be an increase of around 30% to 35% from the year-prior quarter. Also, the organization expects its full-year revenue to be between $933 million and $943 million, an increase of 41%-42% contrasted with the earlier year. Synaptics' better-than-anticipated performance in both mobile and PC products is relied upon to drive this performance.

Also, Synaptics expects its unique supplies producer partners to convey high volume products going ahead. It is now picking up footing as the organization as of late increased the creation of its single layer on-cell solution for Chinese customers.

It is observing positive trends with respect to the selection of its single layer on-cell solutions in the passage level smartphone market. Also, its in-cell solutions are picking up footing in the mid-to-top of the line market. So, the organization is also attempting to tap the high-volume plan smartphone advertise in countries like China.

This acquisition could be a solid catalyst

Synaptics' display integrations solutions are popular with the item classification surpassing more than 40% of its mobile shipments in the previous quarter. In addition, Synaptics' acquisition of Renesas may have something to do with the organization's trust.

The organization believes that the acquisition will stretch its addressable market by 150%. So the acquisition has most likely permitted Synaptics to purchase its path into Apple. Furthermore, the organization believes that Renesas will help it convey a coordinated touch and display driver solution, conveying a holding-nothing-back one solution. The organization is now seeing strong interest for display incorporation solutions.

More slender, lighter and responsive are the attributes that Apple looks to convey with every new version of the iphone. The smartphone organization is attempting to bring out a progressive gadget this time with bigger displays and could ship as many as 180 million iphones this year. In the event that Synaptics can arrive a spot at Apple, it will have the capacity to grow its market considerably.

Development is driving improvement in smartphones

Development is at the center of Synaptics' development. The organization had a strong presence recently at the Mobile World Congress in Barcelona, where it showcased display and other energizing cutting-edge solutions. Synaptics also appreciated a rich presence at the Samsung Unpacked occasion, where the Galaxy S5 was advertised.

It leveraged Synaptics' stylus technology that has made it the first-ever smartphone in the industry with sensitivity down to 1 millimeter, permitting the use of basically any stylus, including the normal pen or pencil. Its common ID item family comes with a seamless touch confirmation experience with cutting edge security features to give greatest gadget and information insurance.

Going ahead, it is normal that Samsung will at the end of the day tap Synaptics for its phablet, the Galaxy Note 4. So the organization's development has empowered to manufacture a strong relationship with Samsung.


Solid item development and the developing appropriation of biometric solutions are tailwinds for Synaptics. The organization's fiscal performance is relied upon to enhance at a fast pace going ahead. This is the reason, it looks set to proceed with its fabulous run on the stock business.

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