Jason Luongo
Growth-Stock Options Trader, LEAPS & Income Strategies
Synaptics stands to benefit as AI moves out of data centers into physical devices, a read-through from Micron's results. Micron said L2+ vehicles carry 5x the memory and storage of average cars and humanoid robots carry 10x that of L2+ vehicles. Physical AI needs local compute, sensing, connectivity and low-power inference, which is Synaptics' lane. x.comÂ
ON Semiconductor is back to reasonable multiples after Friday's sell-off tied to Synaptics. Per Mizuho, as many as six analog OEMs are raising prices into the second half of 2026 as demand for select components stays very tight, with NXP, Texas Instruments, Infineon, STMicro and others noting increases of up to 5-30% as AI servers drive demand. x.comÂ
Synaptics remains a cheap edge-computing play at 14x next-twelve-month earnings for 23% expected growth in FY26. It is not a buy this week while everything is rising, but it is among the names that would offer a huge opportunity if the S&P 500 calms down and drops back toward the 662 level. x.comÂ
Synaptics' fundamentals are starting to inflect after a two-year base, with EPS expected to rise from $2 in 2024 to $6-7 by 2028 and revenue recovering toward steady growth. It designs Wi-Fi, touch and IoT connectivity and interface chips for smart devices and edge computing. x.com x.comÂ
Onsemi's Synaptics deal matters more than most investors realize, marking a major move into physical AI through Synaptics' edge AI compute, connectivity and software, with far greater exposure to robotics and intelligent edge systems. Shares fell 21% on the all-stock structure's dilution, a short-term negative against long-term strategic benefits; an all-cash or mixed deal would have been preferable. x.com x.comÂ
Nordic Semiconductor, Ambiq Micro and CEVA look unattractive as edge AI silicon suppliers, with the full argument set out in a new Substack article. x.comÂ
AI on the edge is barely factored into Nvidia's and AMD's valuations, yet it is likely to become a multi-trillion-dollar market. As Larry Ellison explains, real-time models for autonomous driving, robotics and industrial automation need ultra-low-latency compute inside the device, using chips very different from data center GPUs. Investors see the data center buildout but are still missing edge AI. x.comÂ
Ambarella has become a pure-play edge AI chip company as AI inference migrates from the cloud to devices. Edge AI silicon is now 80% of the business, and revenue rose 37.2% to $390.7 million last fiscal year. Latency, bandwidth costs and privacy push inference onto drones, cars and robots, which its CV3-AD chips serve locally. A Hanwha agreement could bring up to $800 million, and non-GAAP EPS of $0.11 marks a profitability inflection, though GAAP results still show a loss. x.comÂ
Soitec offers a barbell in semiconductors, pairing a cyclical recovery with hyper-growth exposure. As smartphone and auto inventories normalize, its core business should recover, while it also gains explosive exposure to AI edge and cloud infrastructure and to EV silicon carbide adoption, making it a powerhouse for 2026 and beyond. x.comÂ
Ambarella's appeal as a perfect acquisition target is playing out sooner than expected. Edge AI chips make up 80% of its revenue, which hit a record $391M in FY2026, up 37%, and it has 370+ customer projects in production, a Hanwha deal worth $800M+ and a 15-year CVflow software moat with switching costs measured in years. Its CV3-AD chip also handles camera, radar and lidar on a single die. x.comÂ