Synopsys aims to rebound to $600 by 2027 amid AI chip demand and Ansys deal synergies.

Synopsys, a key player in AI chip design, faces stock pressure despite strong Q2 FY26 revenue growth and earnings beats. Challenges include $10 billion debt from the Ansys acquisition, softness in its Design IP segment, and a cautious analyst rating. Wall Street sees a 21% upside with a consensus target around $560, but the company could reach $600 by March 2027 if AI-driven demand, Ansys synergies, and institutional support materialize. Risks include delayed integration and geopolitical tensions affecting China exposure. Overall, the stock trades below its 52-week high but shows strong long-term earnings potential.