We recently published a list of 10 Most Oversold Semiconductor Stocks in 2024. In this article, we are going to take a look at where Synaptics Incorporated (NASDAQ:SYNA) stands against other most oversold semiconductor stocks in 2024.
The semiconductor industry is a crucial pillar of global technological development, providing essential components for various industries, from consumer electronics to industrial automation. Despite its long-term growth potential and innovation, several semiconductor companies underperformed significantly in 2024. These companies were impacted by internal and external factors such as geopolitical tensions and changing regulatory landscapes. For 2024, even the broader Philadelphia Semiconductor Index (SOX), which tracks the performance of the largest U.S.-traded semiconductor companies, returned 19.2%, lagging behind the S&P 500 Index’s 23% return.
In a mid-2024 CNBC interview, Stacey Rasgon, Managing Director at Bernstein Research, highlighted that U.S. semiconductor companies are at a disadvantage due to these restrictions, potentially limiting their growth and competitiveness in the global market. He also attributed uncertainties in Taiwanese businesses to comments from Mr. Trump, the then-presidential candidate, regarding Taiwan.
Certain sectors within the semiconductor industry also faced weaker-than-expected demand in 2024, particularly in consumer electronics and traditional automotive sectors. Despite strong growth prospects in AI, data centers, and automotive technologies, companies more exposed to legacy industries experienced slower demand, leading to weaker earnings. Deloitte’s 2025 global semiconductor industry outlook described this as a “tale of two markets”: companies in the generative AI chip market outperformed, while those without exposure (such as automotive, computer, smartphone, and communications semiconductor companies) underperformed.
While the long-term outlook for the semiconductor sector remains positive, short-term volatility and external challenges are creating headwinds for many companies. Companies most exposed to geopolitical tensions, regulatory shifts, and supply chain issues are likely to experience continued underperformance.
Our Methodology
To determine the 10 most oversold semiconductor stocks in 2024, we began by shortlisting all U.S.-listed semiconductor companies with a current market price of over $10 to avoid penny stocks. From these stocks we filtered the stocks which posted negative returns in 2024. We then ranked the bottom 10 companies in descending order based on their 2024 performance. Additionally, we included data on hedge fund holdings in these companies as of Q4 2024 to provide further insight into investor interest.
Note: All pricing data is as of market close on February 19.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A technician inspecting a newly-manufactured semiconductor product.
Synaptics Incorporated (NASDAQ:SYNA)
Share price return in 2024: -31%
Number of Hedge Fund Holders: 27
Synaptics Incorporated (NASDAQ:SYNA) is a global developer and fabless supplier of premium mixed-signal semiconductor solutions that enable interaction with connected devices and data. The company provides connectivity, sensors, and AI-enhanced processor solutions to OEMs that design IoT products and devices for automobiles, enterprise workspace devices, and consumer devices. It serves markets including IoT, personal computers (PCs), enterprise and automotive sectors, and mobile devices. The company’s innovative solutions for fingerprint sensors, OLED displays, and touchscreens have been increasingly in demand as more industries, particularly automotive and mobile, adopt advanced interactive technologies.
In 2024, Synaptics Inc. (NASDAQ:SYNA) encountered several operational challenges, including a decline in demand and a reduction in customer inventory. Revenue for the nine months ending March 2024 declined by 37%, with decreases in revenue from its Enterprise and Automotive products and Core IoT product applications. The company’s share price consistently declined throughout the year, resulting in a 31% YTD loss. As the business stabilizes and works towards recovery, the share price remains down 3.6% in 2025. After the recently released in-line Q2 2025 results (FY ending June), a Mizuho analyst maintained his Buy recommendation with a price target of $90, down from $95 earlier. The analyst believes that the results indicate that trends are improving and the company is moving past its low point.
Overall, SYNA ranks 8th on our list of most oversold semiconductor stocks in 2024. While we acknowledge the potential of SYNA to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SYNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
