Synaptics Incorporated

Onsemi announced a new agreement to acquire Synaptics for $123 a share in cash, revising the all-stock deal disclosed in June after an unsolicited competing proposal. Advanced Micro Devices said it would acquire World Labs, an AI model and research lab, in an all-stock transaction valued at nearly $8.2 billion. Hormel Foods agreed to acquire Brakebush Brothers, a value-added chicken provider, from the Brakebush family for approximately $1.055B, with the deal expected to close in the first quarter of fiscal 2027. Lynas Rare Earths agreed to acquire Australian peer Meteoric Resources in an all-stock deal valued at A$968M, or $672M. Mattel soared 19% after a report that the toymaker has recently received takeover interest from Authentic Brands, while Walgreens private-equity owner Sycamore is near a deal to sell the U.K. pharmacy chain Boots for close to $9 billion, including debt.

ON Semiconductor said it will acquire Synaptics in an all-cash transaction at $123 per share, replacing its original offer of 1.350 ON Semiconductor shares for each Synaptics share held. The revised deal values Synaptics at $5.7 billion, down from the original $7 billion, and represents a nearly 16 percent premium over Synaptics' closing price on Thursday. Synaptics shares surged 14.08 percent on Friday to close at $121.10, extending their winning streak to a fourth straight session and bringing the week's gain to 17.9 percent. Synaptics President and CEO Rahul Patel said the all-cash structure provides value certainty at a meaningful premium, and ON Semiconductor will finance the transaction with cash on hand and committed financing from Morgan Stanley. The deal is expected to close in the middle of next year, subject to approval by Synaptics shareholders, with Synaptics' board joining ON Semiconductor's board. The acquisition followed Synaptics' fourth-quarter results, in which net losses widened by 9,419 percent to $447.4 million from $4.7 million a year earlier, dragged by a $425.3 million non-cash charge tied to a valuation allowance against US deferred tax assets, while revenue rose 8.9 percent to $308 million.

Tesla shares rose 5% after the electric vehicle maker reported third-quarter deliveries of 486,532 vehicles, above the 461,100 units expected by analysts polled by FactSet. Broadcom rose more than 3% after Reuters reported it agreed to lend Anthropic up to $42 billion to finance infrastructure purchases, with investment banks seeking to raise $42 billion of Class A senior secured debt and $18 billion in Class B debt, according to Bloomberg. Nike fell almost 6% after its fiscal first-quarter revenue missed analyst expectations, with a 4% slide in sales tied to declines in China and plans to lay off staff in 2027. Synaptics surged 14% and ON Semiconductor rose more than 5% after ON Semi revised its buyout offer for Synaptics to $123 a share, or $5.7 billion. Seagate and Western Digital each tumbled 13% following a Nikkei report that Japan's Toshiba will double its hard disk drive production capacity for data centers and invest $380 million to expand facilities in the Philippines.

Nike shares fell more than 10% in premarket trading after the company missed revenue expectations against LSEG consensus for its fiscal first quarter, reporting sales down 4% on declines in its China business and announcing plans to lay off staff in 2027. Synaptics shares jumped over 14% and ON Semiconductor shares rose more than 7% following reports that ON Semiconductor will acquire Synaptics for $123 per share in cash, a transaction now valued at $5.7 billion, down from the prior agreement of $7 billion. Nexalin Technology shares dropped over 18% premarket after the medical device company announced a 10-year distribution and manufacturing deal with Inovanexa Medical Technologies on Thursday, clearing its Nexalin Sync neurostimulation device for distribution across seven South American countries. Vylor shares gained slightly after the seeds and genetics company was added to the S&P 500 on Thursday, following its spinoff from Corteva, which will move to the S&P MidCap 400. Seagate Technology and Western Digital shares fell over 11% and 8% respectively after a Nikkei report that Toshiba will double its production capacity for data-center hard disk drives and invest $380 million to expand facilities in the Philippines.

Nike tumbled 9.6% in premarket trading to $31.79 after the athletic footwear and apparel giant reported mixed fiscal first-quarter 2027 results and issued a weaker-than-expected full-year outlook. Nike reported adjusted earnings of 48 cents per share, topping the 44-cent consensus estimate, but revenue of $11.21 billion missed expectations of $11.35 billion and declined 5% on a currency-neutral basis from a year earlier. Synaptics surged 13.8% in premarket trading after onsemi and Synaptics amended their merger agreement, converting the transaction from an all-stock deal into an all-cash acquisition at $123 per share, valuing Synaptics at about $5.7 billion. The change followed an unsolicited, non-binding proposal from an unnamed strategic party received by Synaptics on Sept. 2, prompting the two companies to renegotiate the deal structure and consideration. Moderna rose 2.2% in premarket trading to $193.15 after Nasdaq confirmed the biotechnology company will be added to the Nasdaq-100 Index effective Oct. 9, replacing Warner Bros. Discovery, while Fair Isaac fell 6.9% after Bloomberg reported the Federal Housing Finance Agency plans to require lenders to use credit data from only two of the three major credit bureaus for mortgages sold to Fannie Mae and Freddie Mac.

ON Semiconductor agreed to acquire Synaptics for $123 per share in cash, or approximately $5.7B, replacing the all-stock deal announced in June that was valued at about $7B. The revised transaction, which follows an unsolicited competing proposal, is expected to be immediately accretive to Onsemi's non-GAAP EPS and will be funded with cash on hand and committed debt financing from Morgan Stanley, with closing still expected by mid-2027; Synaptics' board unanimously approved the amended agreement. Synaptics shares rose 14% and Onsemi shares gained 6% on the news. ChronoScale Holdings climbed 6% after announcing an expansion with an existing AI infrastructure customer and a separate agreement with a new customer, bringing its contracted business to support a $1B annualized revenue run rate by Q3 2027, though the company cautioned the target depends on timely infrastructure deployment, power and equipment availability, and access to capital. Nike shares plunged 9% after reporting mixed FQ1 results, with revenue declining 4% Y/Y to $11B and a weaker-than-expected FY2027 outlook; Greater China sales plunged 22% Y/Y to $1.2B, Converse revenue fell 28%, Nike Direct declined 8%, and wholesale sales slipped 1%. Nike expects FY2027 revenue to decline by a high-single-digit percentage and adjusted EPS of $1.15-$1.35, excluding about $0.15 in restructuring costs, below the $1.67 consensus, with its PACE initiative targeting approximately $2.5B in savings through FY2031, including $1B in employee-related costs.

Synaptics Incorporated announced that its first CTS tactile sensing module, powered by the SN6012T controller, is now supported within NVIDIA's Isaac Sim robotics simulation framework, letting developers prototype and validate contact and force interactions for dexterous robotic hands, grippers, and other Physical AI systems. The CTS module and Synaptics' Astra Edge AI processors integrate with NVIDIA Holoscan to unify touch, vision, and motion data, which could simplify how robotics teams design and test human-object interactions before deploying physical hardware. Synaptics' narrative projects $1.6 billion in revenue and $21.2 million in earnings by 2029, requiring 9.4% yearly revenue growth and a $512.0 million earnings increase from -$490.8 million today, and yields a $130.33 fair value, a 34% upside to its current price. The most optimistic analysts were assuming about US$1.7 billion in 2029 revenue and US$190 million in earnings, leaving investors to weigh whether the CTS Isaac Sim integration strengthens the Physical AI and humanoid robotics story or highlights how early and uncertain that market still is.

Synaptics has agreed to be acquired by On Semi in an all-stocks deal worth $7 billion, as disclosed in the FPA Queens Road Small Cap Value Fund's second-quarter 2026 investor letter. The fund highlighted Synaptics as a key holding, noting its development of Astra, an integrated sensing, processing, and communication solution for IoT and edge AI, which was validated by a collaboration with Google Labs in 2025. Synaptics shares closed at approximately $95.08 on August 31, 2026, giving it a market capitalization of about $3.78 billion. The fund also reported a 27.02% return for the first half of 2026, outperforming its benchmark indices, and trimmed appreciated technology holdings during the AI-driven rally.

Synaptics reported fourth-quarter revenue of $308 million, an 8.9% increase from a year ago, and earnings per share of $1.23, up from $1.01. Revenue exceeded the Zacks Consensus Estimate of $305 million by 0.98%, while EPS beat the consensus of $1.21 by 1.65%. Within the total, Core IoT product applications revenue was $104.6 million, above the $99.67 million analyst estimate, and Enterprise and Automotive product applications revenue was $164.3 million, topping the $161.9 million estimate, while Mobile product applications revenue came in at $39.1 million, below the $42.09 million estimate.

Onsemi expects its AI data center revenue to more than double in 2026, as the company guided third-quarter earnings per share to a range of $0.81 to $0.93. The chipmaker reported second-quarter revenue of $1.6 billion, with non-GAAP gross margin of 39.3% and non-GAAP diluted earnings per share of $0.74, all above the midpoint of its guidance. Management noted that supply is tightening in several growth areas, lead times are extending, and the company prioritized AI data center shipments over automotive and industrial segments in the quarter. Onsemi also announced an agreement to acquire Synaptics, with the transaction expected to close in mid-2027, and is implementing a second round of price increases to offset rising input costs. Free cash flow nearly quadrupled in the quarter, reaching $425 million, and the company returned $332 million to shareholders through share repurchases.

Synaptics Senior Vice President and Chief Strategy Officer Satish Ganesan disposed of 1,465 shares of common stock on July 17, 2026, in a non-discretionary transaction to cover tax obligations related to the settlement of restricted stock units. The shares were valued at about $167,000 based on an execution price of $114.05 per share, reducing his direct equity holdings by 2%. Ganesan continues to hold 61,834 shares directly, worth approximately $7.1 million at the market close. The company is pivoting toward the internet of things and edge computing, with core IoT sales jumping 31% last quarter and full-year IoT revenue expected to exceed $385 million, a more than 40% increase.

ON Semiconductor announced a definitive agreement to acquire AI edge solutions company Synaptics in an all-stock transaction valued at $7 billion. The deal aims to expand ON's capabilities from power and sensing technology into connected compute, targeting the physical AI market. Management expects the acquisition to add to earnings per share within 18 months of closing and to generate $200 million in synergies, primarily from operating expenses. The combined company is projected to have revenue of $7.8 billion, gross profit of $3.3 billion, and operating profit of $1.7 billion, with a total addressable market expanded by $30 billion to $243 billion by 2030. The announcement triggered a sharp sell-off in ON Semiconductor shares as investors reassessed the company's strategic shift.

Synaptics has surged 74.95% year to date, leading a basket of smartphone chip stocks poised to benefit from the next handset upgrade cycle driven by on-device AI, camera stacks, and RF complexity. The company reported fiscal Q3 2026 revenue of $294.20 million and an 8.17% beat on non-GAAP EPS of $1.09, with full-year Core IoT revenue expected to grow more than 40% year over year to over $385 million. Qualcomm, trading at a forward P/E in the low double digits, saw handset revenue fall 13% year over year to $6.024 billion but expects a bottom in Chinese handset revenues in Q3 FY26 and has authorized a $20 billion share repurchase program. Cirrus Logic delivered a 59.84% EPS beat at $1.95 in Q4 FY26, with full-year free cash flow surging 52.97% to $635.76 million, and is developing next-generation camera controllers to increase Apple silicon content per device. Qorvo posted a 39.48% EPS beat at $1.69 and a 670-basis-point gross margin expansion to 52.6%, while Skyworks Solutions, down 22.29% over the past year, reported a 10.10% EPS beat at $1.15 and expects a multi-generational Android design win to generate over $1.00 billion in revenue through 2030.

Cantor Fitzgerald raised its price target on ON Semiconductor Corporation to $110 from $100 while maintaining a Neutral rating. Analyst Matthew Prisco cited the AI infrastructure buildout as a durable generational semiconductor cycle, projecting industry revenue could reach roughly $3 trillion by 2029 and potentially exceed $3.5 trillion by 2030. Separately, ON Semiconductor agreed to acquire Synaptics in an all-stock deal valued at about $7 billion, its largest acquisition, with Synaptics shareholders receiving 1.350 Onsemi shares per Synaptics share, a 19% premium based on the 10-day volume-weighted average closing prices. CEO Hassane El-Khoury said the deal would speed Onsemi's push into physical AI and expand its addressable market by $30 billion to $243 billion by 2030.

ON Semiconductor shares fell roughly 21% on Friday, their worst single-day loss since 2020, after the chipmaker announced its largest-ever acquisition, a $7 billion all-stock deal for Synaptics. The transaction values Synaptics at a 19% premium based on recent average prices, with Synaptics shareholders set to own about 12% of the combined company, diluting existing ON Semiconductor investors. CEO Hassane El-Khoury framed the move as an entry into physical AI, combining ON Semiconductor's power and sensing hardware with Synaptics' edge AI and wireless connectivity to target a $243 billion addressable market by 2030. The company projects roughly $200 million in annual cost savings, but analysts caution that meaningful earnings benefits may not materialize until 2028 or 2029, well after the expected mid-2027 closing. Synaptics shares gained about 3% on the day.

ON Semiconductor shares plummeted 23.7% after the company announced it will acquire Synaptics in an all-stock deal valued at nearly $7 billion. Rocket Companies gained 1.5% after NASA said the company will provide launch services for two missions researching the Sun's energy input into Earth. Sandisk tumbled 10.5% and Seagate Technology fell 12.2% amid a broader tech decline.

The tech sector remained in focus this week, with Micron's blowout earnings report cheering investors. Micron shares surged 15.7% on Thursday after its third-quarter results and guidance topped Wall Street expectations by a wide margin, prompting several brokerages to raise their price targets. Qualcomm presented a comprehensive data center strategy during its Investor Day, revealing Meta Platforms and Microsoft as early customers and setting a revenue target of more than $15 billion by fiscal 2029. ON Semiconductor announced an all-stock deal worth $7 billion to acquire Synaptics, but its shares closed 24% lower on Friday. Other notable developments included Apple raising prices on MacBook and iPad models due to memory shortages, Microsoft planning to increase Xbox console prices worldwide from August 1, and Oracle reducing its workforce by about 21,000 employees over the past year as part of a restructuring effort.

Three beaten-down AI chip stocks—Nvidia, ON Semiconductor, and Intel—stand out as potential buys amid the sector's sell-off. Nvidia shares have fallen about 18% from their 52-week high, trading at roughly 29 times earnings after reporting fiscal first-quarter revenue of $81.6 billion, up 85% year over year, with data center revenue climbing 92% to $75.2 billion. ON Semiconductor tumbled more than 23% on Friday to around $91 after announcing a $7 billion all-stock acquisition of Synaptics, its largest deal ever, even as its first-quarter revenue rose 5% and its AI data center business more than doubled. Intel's stock has surged from a 52-week low near $19 to around $128, driven by CEO Lip-Bu Tan's turnaround, with first-quarter revenue up 7% to $13.6 billion and a reported win with Tesla for its advanced 14A manufacturing process, though it remains profitable only on a non-GAAP basis and its foundry business lost $2.4 billion. Among the three, Nvidia appears the most compelling due to its dominant, fast-growing business and discounted valuation, while Intel is the most speculative and ON Semiconductor pairs a cyclical recovery with integration risk.

Moderna shares surged on Friday, making it one of the top performers in the S&P 500, after the company held its investor day and outlined plans beyond its COVID vaccine business, focusing on next-generation approaches to treat autoimmune diseases. Netflix stock traded higher in what could be a relief bounce after shares recently hit their lowest level in about 20 months, driven by competition, engagement questions, and concerns over potential M&A needs, with the stock nearly halved over the last year. ON Semiconductor shares plummeted after the company announced a nearly $7 billion all-stock deal to buy Synaptics, aiming to expand into physical AI and boost its long-term market opportunity, though investors are digesting the details of the acquisition.

Micron Technology surged more than 15% on Thursday after a blowout fiscal third quarter, with EPS of $25.11 on revenue of $41.46 billion, both well above consensus, and fourth-quarter revenue guidance of $49 to $51 billion also beating estimates. Apple fell 6.4% over the week on reports of 15% to 25% price hikes on Macs, iPads, and accessories, which Morgan Stanley called unprecedented in at least 15 years. ON Semiconductor plunged 24% on Friday after announcing an all-stock acquisition of Synaptics for about $7 billion, a roughly 19% premium, leading TD Cowen to downgrade the stock to Hold. Strategy tumbled more than 28% as Bitcoin slid below $60,000, renewing balance-sheet concerns. Defensive rotation boosted large-cap pharma, with Johnson & Johnson up 9.4%, Merck gaining 11.4%, and Eli Lilly jumping 7.6%.

TD Cowen downgraded onsemi to Hold from Buy, arguing that the planned all-stock acquisition of Synaptics complicates the investment thesis despite long-term confidence in automotive and datacenter growth. The brokerage lowered its price target to $110 from $115, citing limited upside after this year's sharp rally. The deal, announced late Thursday, values Synaptics at an enterprise value of about $7 billion and is expected to close in mid-2027. TD Cowen believes the acquisition adds strategic breadth but dilutes onsemi's pure-play narrative, introducing greater exposure to consumer and wireless markets. The firm noted limited detail on revenue synergies and expects meaningful earnings accretion only in 2028 or 2029, with roughly 12% equity dilution for existing shareholders.

On Semiconductor announced an all-stock deal to acquire Synaptics for nearly $7 billion, its largest acquisition ever, which it estimates will increase its total addressable market by $30 billion. On Semiconductor shares fell more than 15% premarket, while Synaptics rose 2.5%. Memory stocks declined, with Micron down more than 4.5% and Sandisk off a similar amount, while Seagate Technology and Western Digital each fell about 3.5%. Chipmakers also dropped, with Arm Holdings and Marvell Technology down about 4%, Advanced Micro Devices off 3.5%, and Intel tumbling 3%, partly weighed by a report that OpenAI may delay its IPO until 2027. Rocket Lab rose 1.5% after NASA selected it to provide launch services for two missions studying the Sun's energy input and ice clouds. Apple bucked the trend, edging up 0.5% after its worst day in over a year. Energy stocks fell as oil prices dropped more than 3% to below $70 per barrel, with APA Corporation down more than 1.5% and Diamondback Energy, Constellation Energy, and Occidental Petroleum each off about 1%.

ON Semiconductor agreed to acquire Synaptics in an all-stock deal valued at $7 billion, sending ON shares down 13% while Synaptics rose 6%. Under the fixed exchange ratio, Synaptics shareholders will receive 1.35 ON shares for each Synaptics share, and the combined company targets a total addressable market of $243 billion by 2030. The transaction is expected to be accretive to adjusted earnings within 18 months of closing and generate $200 million in annual synergies. Separately, Titan Mining surged 42% after the U.S. Army awarded it long-term leases to build a graphite purification facility at two military bases, part of a broader Pentagon push for domestic critical-minerals processing. Wise Group gained 7% on plans for a share buyback exceeding $500 million and reiterated medium-term targets of 15%–20% net revenue CAGR and a 15%–20% income before tax margin. Nano-X Imaging dropped 12% after reporting first-quarter revenue of $4.3 million, missing estimates, and withdrawing its 2026 outlook due to going-concern uncertainty.