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Synopsys Inc

Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). The company was incorporated in 1986 and is headquartered in Sunnyvale, California.

Price · split & dividend adjusted
News & notes moving SNPS
Artificial Intelligenceimpact 4

Nvidia, Salesforce, CrowdStrike Lead After-Hours Moves

In after-hours trading, Nvidia rose 4% after beating expectations on both lines in the second quarter, with revenue more than doubling to $96.22 billion and adjusted earnings of $2.22 per share, versus analyst estimates of $92.17 billion and $2.10 per share. Salesforce soared 12% after reporting second-quarter revenue of $11.35 billion, slightly above the consensus estimate of $11.32 billion, and adjusted earnings of $5.90 per share, more than double year-over-year due to an investment gain. CrowdStrike Holdings gained 10% after beating consensus on revenue and earnings per share, while Okta surged 19% on stronger-than-expected results and raised full-year guidance. Urban Outfitters fell 3% despite in-line results, and Synopsys dropped 2% even after raising its annual forecasts.
CNBC·8hRead more ▾
Artificial Intelligence

Synopsys Q3 EPS and Revenue Beat, Raises Full-Year Guidance

Synopsys reported third-quarter non-GAAP earnings per share of $3.91, beating estimates by $0.24, and revenue of $2.48 billion, up 42.5% year-over-year and $40 million above consensus. The company raised its full-year revenue guidance to $9.715 billion at the midpoint, versus the consensus of $9.68 billion, and its non-GAAP EPS guidance to $15.07, versus the consensus of $14.77, citing continued AI-driven demand strength. Shares fell 1.4% in after-hours trading.
Seeking Alpha·9hRead more ▾
Artificial Intelligence2

Synopsys Q3 Earnings Preview: Consensus EPS $3.67, Revenue $2.44B

Synopsys is scheduled to report third-quarter fiscal 2026 results on Aug. 26, 2026, after market close. The company expects non-GAAP earnings per share between $3.63 and $3.69, while the Zacks Consensus Estimate is pinned at $3.67 per share, indicating a year-over-year increase of 8.3%. Synopsys anticipates revenues between $2.41 billion and $2.46 billion, with the consensus estimate pegged at $2.44 billion, suggesting a rise of 40% from the year-ago period. The company's performance is likely to have benefited from continued AI-driven demand for semiconductor design and engineering solutions, strength in the Design Automation business, and the Ansys business. However, weak design-start activity in industrial and automotive markets and a challenging environment in China might have remained headwinds. Synopsys has an Earnings ESP of +0.35% and carries a Zacks Rank #3, which does not conclusively predict an earnings beat.
Zacks Investment Research·2dRead more ▾
Semiconductors

Synopsys AI-Focused Design IP Strategy Drives Growth

Synopsys reported strong momentum in its Design IP business during the second quarter of fiscal 2026, driven by AI-related demand for high-speed interconnect and memory IP. The segment generated $454.2 million in revenue, accounting for 20% of the company's total, with a 12% sequential increase and an adjusted operating margin of 24.4%. The company's PCIe 7.0 IP achieved a win rate exceeding 90% and secured 18 new licenses, while UCIe design wins surpassed 150 lifetime wins and included a 64G tapeout on a 2nm process. Management expects muted IP growth for fiscal 2026 but believes the segment has begun recovering, with a strategy focused on high-value AI opportunities and hyperscaler customization. Synopsys shares have lost 15.7% year to date, and the stock trades at a forward price-to-sales ratio of 7.32X, below the industry average of 11.08X.
Zacks Investment Research·6dRead more ▾
Semiconductors

Synopsys Leverages AI to Accelerate Chip Design and Drive Growth

Synopsys is integrating AI across its product portfolio to automate engineering processes, accelerate design cycles, and enhance customer productivity, driving solid design wins. The company has introduced XSO.ai to embed AI capabilities directly into its solutions, while DSO.ai has optimized more than 700 cumulative tape-outs and VSO.ai has been deployed across as much as 90% of SoC blocks in certain chips. Synopsys is also advancing agentic generative AI for more autonomous engineering workflows, with productivity gains including up to 50% faster knowledge assistance and 70% faster workflow assistance. Shares of SNPS have lost 12.5% year to date, and the Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $14.49, indicating 12% year-over-year growth. Synopsys currently carries a Zacks Rank #2 (Buy).
Zacks Investment Research·14dRead more ▾
Quantum Computing

GlobalFoundries Q2 revenue tops guidance on data center strength

GlobalFoundries reported second quarter 2026 revenue of $1.786 billion, up 9% sequentially and 6% year-over-year, exceeding the high end of its guidance. Non-IFRS gross margin reached approximately 29.9%, up 470 basis points year-over-year, and the company guided third quarter revenue to $1.885 billion plus or minus $25 million with gross margin of approximately 30.5%. Communications infrastructure and data center revenue surged 62% year-over-year, driven by silicon photonics and silicon germanium demand, and the company now expects full-year 2026 growth of 50% to 60% for that end market, up from prior expectations of high 30s percentage growth. CEO Timothy Breen highlighted a $375 million U.S. Department of Commerce grant for quantum manufacturing, a $300 million award for silicon photonics development, and the completion of the Synopsys ARC processor IP acquisition, while CFO Sam Franklin announced a quarterly dividend of $0.12 per share payable October 9, 2026.
The Motley Fool·14dRead more ▾
Semiconductors

Synopsys unveils autonomous chip-design agents with Nvidia, yet stock lags

Synopsys demonstrated fully autonomous chip-design verification agents at the DAC Chips to Systems Conference on July 26, built with Nvidia's agentic AI infrastructure. The orchestrator agent runs the entire verification cycle independently, compressing weeks of work and validating RTL up to 50 times faster while improving coverage by an additional 20%. The company also introduced an autonomous thermal-management workflow and an analog/mixed-signal flow that boosts productivity up to three times, alongside GPU acceleration across more than 20 EDA and multiphysics products. Revenue climbed 42% year-over-year in the fiscal 2026 second quarter, prompting raised full-year guidance, while fiscal 2025 revenue reached nearly $7.1 billion. Yet the stock carries a roughly 12% year-to-date decline even as the company keeps gaining ground in the tools that design nearly every AI chip. That gap between what the business is doing and where the shares sit is the story here.
Insider Monkey·15dRead more ▾
Semiconductors

Synopsys Certifies AI Design Software for Intel's 14A Chip Node

Synopsys has certified its AI-powered electronic design automation software for Intel's upcoming 14A manufacturing process, extending a collaboration that already covers Intel's 18A and 18A-P nodes. The certification, announced at the DAC Chips to Systems Conference, integrates power, thermal, and electromagnetic analysis into the design flow and extends Synopsys's 3DIC Compiler platform to support Intel's EMIB and EMIB-T advanced packaging. New interface IP tied to the node, including PCIe 7.0 and 224G SerDes, aims to accelerate chip tapeouts. The move deepens Synopsys's position in advanced chip design, though the company is navigating margin pressure from its $35 billion Ansys acquisition and multiple class-action lawsuits.
Insider Monkey·16dRead more ▾
Semiconductorsimpact 4

Synopsys Unveils Agentic AI Chip Design Tools with Microsoft and AMD

Synopsys has introduced autonomous agentic AI workflows for chip design, developed with Microsoft and already being evaluated by AMD. The two workflows, announced at the DAC Chips to Systems Conference, target debug closure and implementation on Azure, with early evaluations showing a 25% to 40% reduction in debug cycle time. AMD is actively assessing the tools for its next-generation products. The launch comes as Synopsys reported 42% year-over-year revenue growth in its fiscal 2026 second quarter and raised full-year guidance, though shares had fallen 12% year to date as of July 16 amid margin pressure from its $35 billion Ansys acquisition and legal overhang.
Insider Monkey·16dRead more ▾
Semiconductors

GlobalFoundries reports second-quarter revenue of $1.786 billion, exceeding guidance

GlobalFoundries announced second-quarter 2026 revenue of $1.786 billion, with non-IFRS gross margin of 29.9% and non-IFRS diluted earnings per share of $0.46, all exceeding the high end of its guidance ranges. Net income was $167 million, non-IFRS net income reached $256 million, and non-IFRS adjusted EBITDA came in at $587 million. The company also highlighted recent strategic moves, including a letter of intent for a $300 million U.S. CHIPS R&D award for silicon photonics, the completion of acquisitions of Photeon Technologies' integrated voltage regulator business and Synopsys' ARC Processor IP Solutions business, and the launch of Quantum Technology Solutions backed by an expected $375 million U.S. grant. GlobalFoundries paid its first-ever quarterly cash dividend of $0.12 per share in July and approved another $0.12 per share dividend payable in October.
GlobeNewswire·21dRead more ▾
Artificial Intelligence

Semiconductor IP Market to Reach $18.64 Billion by 2032

The global semiconductor IP market is projected to reach $18.64 billion by 2032, growing at a compound annual growth rate of 10.2% from 2026, according to a new report from ResearchAndMarkets.com. The market was valued at an estimated $9.30 billion in 2025. Security IP is expected to be the fastest-growing design IP segment, while hard IP is projected to outpace soft IP, and the RISC-V architecture is positioned for the fastest growth. Asia Pacific is forecast to remain the fastest-growing regional market, driven by investments in semiconductor self-sufficiency and expanding chip design ecosystems. Key players profiled include Arm, Synopsys, Cadence, Rambus, Alphawave Semi, and SiFive.
ResearchAndMarkets.com·22dRead more ▾
Artificial Intelligence

Nvidia Uses Its Own Vera CPU to Accelerate Next-Generation Chip Design

Nvidia announced that its Vera CPU is now being used in electronic design automation workflows to develop the company's next-generation CPUs and GPUs, with early testing on Cadence and Synopsys tools showing up to 1.5 times faster verification and simulation performance. Vera packs 88 custom Olympus cores and a new memory architecture, and Nvidia is running clusters of it in a data center to speed up CPU-bound stages of chip design. The company expects Vera to open roughly $200 billion in addressable server CPU revenue and is guiding to around $20 billion in Vera sales this fiscal year. In contrast, AMD is evaluating new autonomous agentic AI workflows from Synopsys and Microsoft to accelerate its own chip design, rather than using its own silicon. Nvidia trades near 22 times forward earnings, while AMD trades closer to 66 times forward earnings.
Yahoo Finance·23dRead more ▾
Semiconductors

Synopsys and Keysight certify tools for Intel's 14A and 18A P foundry nodes

Synopsys and Keysight Technologies have certified advanced electronic design automation and electromagnetic simulation tools for Intel's latest 14A and 18A P foundry nodes. The certification expands Intel Foundry's design ecosystem for artificial intelligence and high performance computing customers using these advanced manufacturing processes. The new tool support is intended to help reduce design risk and shorten time to market for chips built on Intel process technology. Intel is working to position its foundry business as a supplier for AI and high performance computing chips, areas that attract heavy investment across the semiconductor industry. Certification of Synopsys and Keysight tools on 14A and 18A P gives chip designers more options to develop complex products on Intel's process technology.
Simply Wall St·27dRead more ▾
Artificial Intelligenceimpact 4

Nvidia commits $5 billion to AI safety startup and expands data center leases

Nvidia is committing $5 billion to Safe Superintelligence, a new AI safety startup led by former OpenAI chief scientist Ilya Sutskever. The company is also entering multibillion-dollar AI data center lease deals, including a large buildout with Hut 8 in Texas, and expanding its Agent Toolkit platform through new partnerships with Synopsys, Siemens, and Cadence to support chip and system design automation. These moves extend Nvidia's reach into AI safety research and large-scale infrastructure, adding another layer of influence in how future AI-capable hardware and software are created and deployed.
Simply Wall St·29dRead more ▾
Robotics & Physical AI

U.S. Robotics Stocks Gain as Physical AI, Surgical Competition, and Defense Autonomy Accelerate

The American robotics industry has entered a decisive acceleration phase in 2026, with June and July emerging as a landmark period across physical AI, surgical systems, defense autonomy, and elder care. In June, BMW Group announced plans to deploy Figure AI's third-generation Figure 03 humanoid at its Spartanburg plant, while NEURA Robotics closed a Series C worth up to $1.4 billion, and humanoid startups have raised $8.6 billion in 2026, 1.8 times the full-year 2025 total. On July 22, the FDA granted de novo authorization to Johnson & Johnson's Ottava system for ten general surgery procedures, breaking a long era of single-platform dominance, and Medtronic unveiled its AI-native Touch Surgery Aide platform. Defense robotics drew fresh capital with Mach Industries raising $300 million and Shifters securing $10.2 million, while the global elder care assistive robot market is projected at $3.9 billion in 2026, reaching $9.8 billion by 2033. Synopsys raised its fiscal 2026 revenue guidance to $9.665 billion at midpoint, AMD unveiled its Ryzen AI Embedded X100 Series for robotics, Manhattan Associates reaffirmed full-year guidance of $1.15 billion in revenues, and UiPath targets fiscal 2027 ARR of approximately $2.06 billion.
Zacks Investment Research·30dRead more ▾
Semiconductors

Synopsys introduces first autonomous EDA workflows on Microsoft Discovery with AMD

Synopsys announced new autonomous agentic AI workflows for chip design, developed with Microsoft and available for evaluation on Microsoft Discovery, with AMD actively evaluating them for next-generation products. The company introduced two workflows: a fully-autonomous debug closure workflow that initial results show can reduce debug cycle time by 25 to 40 percent, and a fully-autonomous implementation and closure workflow that improves quality of results. These are the first EDA applications available on Microsoft Discovery, building on a previously announced agentic specification-to-RTL workflow. Synopsys is showcasing the workflows at the 2026 DAC Chips to Systems Conference, where customers can request evaluation access.
PR Newswire·30dRead more ▾
Semiconductors2impact 4

Synopsys unveils agentic AI advancements powered by Nvidia tech

Synopsys has expanded its collaboration with Nvidia to introduce new agentic AI capabilities, including an autonomous chip verification agent that speeds time-to-validated RTL by up to 50 times while boosting coverage by 20 percent. The companies also demonstrated Synopsys' first fully autonomous computer-aided engineering workflow for thermal management and electronic device cooling, capable of autonomously executing set-up, pre-processing, and post-processing in a fraction of the time required for manual approaches. At the DAC Chips to Systems Conference, Synopsys showcased an expanded portfolio of more than 20 GPU-accelerated EDA and multiphysics products, including an 18 times speedup of PrimeSim SPICE simulations. Ravi Subramanian, chief product management officer at Synopsys, said the close collaboration with Nvidia continues to accelerate next-generation AI technologies by combining Synopsys' domain expertise with Nvidia's advanced AI infrastructure.
Seeking Alpha·31dRead more ▾
Artificial Intelligenceimpact 4

NVIDIA Expands Agent Toolkit with PhysicsNeMo and CUDA-X for Autonomous AI Engineers

NVIDIA announced an expansion of its Agent Toolkit for engineering, adding re-architected PhysicsNeMo libraries and updated CUDA-X libraries to enable autonomous AI engineers with AI physics skills, accelerated solvers, and quantum chemistry capabilities. The toolkit now includes NVIDIA cuISS for iterative sparse solvers, cuDSS for direct sparse solvers, and cuEST for quantum chemistry, while the Nemotron 3 Ultra open model leads in agentic register-transfer level coding for chip design. Cadence, Siemens, and Synopsys are among the industry leaders using these technologies to advance autonomous engineering workflows, with Cadence reporting up to 20x faster multiphysics performance and Siemens achieving more than 10x faster library characterization. Samsung, Synopsys, and TSMC are integrating NVIDIA cuEST into their GPU-accelerated pipeline to achieve up to a 50x speedup for key quantum-chemistry workloads.
GlobeNewswire·31dRead more ▾
SNPS2

Synopsys Insider Selling Raises Questions Ahead of Investor Day

Synopsys faces contrasting signals as insider selling, including share sales by the President and CEO, undercuts optimism ahead of its September 30 Investor Day in New York City. The company reported third-quarter fiscal 2026 results on August 26 and plans to use the Investor Day to review financial performance and business outlook, with analysts expecting higher earnings per share than the prior-year quarter. The event is seen as key for framing the Ansys integration story and addressing revenue concentration risk with major IP customers. Community fair value estimates for the stock range from $492.11 to $559.58, suggesting potential upside from current levels.
Simply Wall St·33dRead more ▾
Artificial Intelligence2impact 4

Cadence and Synopsys shares fall after Kimi K3 designs chip without proprietary EDA tools

Shares of Cadence Design Systems and Synopsys fell roughly 9% on Friday after Moonshot AI's Kimi K3 model autonomously designed a functional semiconductor chip in 48 hours using only open-source tools, bypassing the proprietary electronic design automation software that underpins both companies' businesses. The 2.8-trillion-parameter open-weight Mixture-of-Experts model produced a 4mm² die running at 100MHz on the Nangate 45nm Open Cell Library, completing 13 modules across 3.981mm² and achieving a simulated inference throughput of 8,721 tokens per second without human intervention. The selloff drew comparisons to the January 2025 DeepSeek shock, with Bernstein analyst Robin Zhu noting that K3 represented another instance where China's top AI labs have surprised global investors, while Bank of America analysts said the demonstration raises the capability ceiling for Chinese AI models. The 45nm process node used is several generations behind the 3nm and 2nm nodes where Cadence and Synopsys tools remain deeply embedded, and Moonshot has not clarified whether any licensed IP blocks were included in the design. Full model weights are scheduled for public release on July 27 alongside a technical report detailing the exact EDA toolchain and methodology, which will allow independent developers and analysts to reassess the competitive threat.
Investing.com·40dRead more ▾
SNPS

U.S. stocks extend selloff as semiconductors slump and Moonshot AI debuts Kimi-K3

Wall Street's major averages slid on Friday as global technology stocks declined, led by semiconductors and the debut of Moonshot AI's Kimi-K3. The benchmark S&P 500 was last down 0.5%, the Nasdaq Composite fell 1.1%, and the Dow was flat. The semiconductor sector slumped, with top decliners including Synopsys, Advanced Micro Devices, Intel, and ON Semiconductor. Chinese AI startup Moonshot debuted Kimi-K3, a 2.8 trillion-parameter system that claims to be the world's largest open-weight AI model. On the economic front, export prices unexpectedly fell in June while import prices rose, and industrial production rose less than expected.
Seeking Alpha·40dRead more ▾
Semiconductors

Synopsys to Discontinue Legacy Manufacturing Analytics Products and Shift Resources to AI Chip Design Software

Synopsys plans to discontinue selected semiconductor manufacturing analytics products, including tools used to monitor production anomalies, while reallocating resources toward higher-margin chip-design and AI-design offerings. The company said the products being retired were legacy diagnostic tools outside customers' critical production paths and that it would continue honoring contractual support obligations. The decision follows Synopsys' $35 billion acquisition of Ansys in 2025, which broadened its engineering-software capabilities, and underscores its focus on software used to design increasingly complex chips before fabrication begins.
Reuters·42dRead more ▾
Artificial Intelligence2

Synopsys Stock Could Hit $1,100 by 2030, but Base Model Targets $668

Synopsys shares have dropped 19.53% over the past year despite a 42% year-over-year revenue jump in Q2 FY2026, as Ansys amortization charges crushed GAAP net income by 95.05% to just $17.1 million. Management raised non-GAAP EPS guidance to a midpoint of $14.76, and the stock currently trades around $443.37. A bull-case model from 24/7 Wall St. suggests a path to $1,100 per share by 2030, implying a 148.1% gain and a forward P/E of 74 times today's earnings, though the base case lands at a more conservative $667.60. Achieving the bull target requires Ansys synergies to drive sustained margin expansion, a recovery in Design IP market share, and continued compounding of AI-driven chip design demand through the decade.
24/7 Wall St.·46dRead more ▾
Semiconductors2impact 4

Synopsys to Discontinue Semiconductor Manufacturing Management Software

Synopsys, a major U.S. semiconductor design company, plans to discontinue a suite of manufacturing process management software used by chipmakers worldwide, according to six people familiar with the matter. The move aims to redirect resources toward higher-margin areas such as artificial intelligence design. Two of the people said Synopsys notified more than 10 semiconductor manufacturers in April and May, including Samsung Electronics, SK Hynix, Kioxia Holdings, and Kolbo, of its decision to end support. The affected products include equipment engineering systems and fault detection and classification tools, which are part of a factory automation software suite that monitors and detects anomalies. The company has already cut dozens of jobs and plans to finalize discussions on maintenance obligations by July.
Reuters·51dRead more ▾
SNPS

Synopsys Rated Zacks Rank #1 Strong Buy Amid Steady Earnings Estimates

Synopsys has been assigned a Zacks Rank #1 (Strong Buy), indicating potential near-term outperformance. The consensus earnings estimate for the current quarter stands at $3.68 per share, reflecting 8.6% year-over-year growth, while full-year estimates of $14.75 and $17.18 for the current and next fiscal years imply increases of 14.3% and 16.4%, respectively. Revenue projections show a 40.3% jump to $2.44 billion for the current quarter, with annual estimates of $9.69 billion and $10.68 billion. The stock has declined 8.7% over the past month, compared with a 1.4% drop in the S&P 500 and a 20.3% loss in its industry. Synopsys topped consensus EPS and revenue estimates in three of the last four quarters, though it receives a Value Style Score of F, signaling a premium valuation relative to peers.
Zacks Investment Research·55dRead more ▾
Artificial Intelligence2

Piper Sandler Upgrades Synopsys to Overweight, Raises Price Target to $550

Piper Sandler upgraded Synopsys to Overweight from Neutral and raised its price target to $550 from $450. Analyst Clarke Jeffries cited expectations for a faster-than-anticipated recovery in Synopsys' intellectual property business, noting improving expectations for Intel's 18A-P manufacturing node as a practical alternative to constrained Taiwan Semiconductor Manufacturing capacity. Jeffries said the shift could speed up the recovery of intellectual property demand at Intel, Synopsys' largest customer. Separately, Synopsys reached a settlement with Elliott Investment Management, appointing managing partner Jesse Cohn to its board and expanding the board to 11 members. Cohn will also join the corporate governance and nominating committee and said the firm is on the right path to benefit from rising AI investment and growing engineering complexity.
Reuters·59dRead more ▾
Semiconductors

Synopsys Shares Down 5.3% Since Last Earnings Despite Q2 Beat and Raised Guidance

Synopsys shares have fallen 5.3% since its last earnings report, underperforming the S&P 500. The company reported fiscal second-quarter non-GAAP earnings of $3.35 per share, beating the Zacks Consensus Estimate by 5.7%, while revenue jumped 41.9% year over year to $2.28 billion, exceeding estimates by 1.1%. Design Automation revenues, which include EDA, Ansys and Other, rose 62.3% to $1.82 billion, representing 80% of total revenues, with Ansys alone contributing 28.7% of total revenues. Synopsys raised its full-year fiscal 2026 revenue guidance to a range of $9.625 billion to $9.705 billion and lifted its non-GAAP earnings per share target to $14.72 to $14.80. The stock currently carries a Zacks Rank #2, or Buy, with upward estimate revisions over the past month.
Zacks Investment Research·61dRead more ▾
Semiconductors

Synopsys Co-Founder Shortlisted for Lifetime Achievement Award

Synopsys co-founder Alberto Sangiovanni-Vincentelli has been shortlisted for a Distinguished Lifetime Achievement Award, highlighting his role in shaping electronic design automation and the broader semiconductor industry. The recognition underscores the depth of expertise behind Synopsys, whose stock closed at $461.5, with a return of 8.1% over the past three years and 67.1% over the past five years, though it is down 3.6% over the past year and 12.1% over the past 30 days. The award shortlisting draws attention to the company's long-running role in core chip design tools, even as recent performance has lagged. Analysts have set a price target range of $403.85 to $650, with a midpoint of $563.74, about 18% above the current price, while Simply Wall St estimates the stock is trading close to fair value with only a 0.6% gap. Key risks to monitor include recent dilution and a decline in net profit margins to 8.9% from 21.7% last year.
Simply Wall St·63dRead more ▾
Semiconductors

Synopsys Rated High-Conviction Buy With 23% Upside Target

Synopsys carries a 90% confidence BUY rating with a $561.40 price target, implying 23% upside from its current price of $455.51. Despite second-quarter revenue surging 42% year-over-year to $2.3 billion, the stock has drifted 3% year-to-date, creating a fundamental disconnect driving the bullish call. The $35 billion Ansys acquisition extends Synopsys's moat into multi-physics simulation, with the bull case projecting $667 within 12 months if synergies accelerate. Management raised full-year guidance to $9.625 billion to $9.705 billion in revenue and $14.72 to $14.80 in non-GAAP earnings per share. Risks include roughly $10 billion in long-term debt and export-control overhang into China.
24/7 Wall St.·65dRead more ▾
Artificial Intelligence2

Synopsys launches AI-powered Multiphysics Fusion chip design platform

Synopsys announced the launch of its new Multiphysics Fusion platform, combining its AI-powered chip design tools with Ansys analysis technology to help customers develop advanced AI chips faster. The platform delivers up to 3x faster timing signoff and up to 10x faster design closure, and has been validated by NVIDIA, Samsung Electronics, MediaTek, and Cisco Systems. Early users are already seeing benefits, with MediaTek reporting runtimes 10 times faster than before, while NVIDIA said pilot designs achieved up to 5x faster design closure and as much as 86% IR fix rates. The first Multiphysics Fusion solutions cover timing signoff, design closure, multi-die designs, and analog and photonic workflows. Synopsys stock is trading slightly lower at about $458.61, down roughly 2.16% year-to-date, and the new platform could provide a positive catalyst if customer adoption and AI semiconductor spending remain strong.
Seeking Alpha·69dRead more ▾
Semiconductors

Synopsys Stock Trends on Zacks with Strong Earnings Estimate Revisions

Synopsys has been one of the most searched-for stocks on Zacks.com recently. Over the past month, shares of the chip design software maker have returned negative 7.5 percent, while the Zacks Computer - Software industry lost 9.4 percent. The Zacks Consensus Estimate for current-quarter earnings is $3.68 per share, up 2.2 percent over the last 30 days, and the current fiscal year estimate of $14.75 has risen 3.4 percent. Synopsys holds a Zacks Rank #2, or Buy, reflecting positive earnings estimate revision activity. The company reported revenues of $2.28 billion in its latest quarter, a 41.9 percent year-over-year increase, and topped consensus EPS estimates three times in the past four quarters.
Zacks Investment Research·69dRead more ▾