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AI chip-design firm Synopsys posts 42% revenue growth but trades at a discount to peers, signaling undervaluation.

Analyst Insights
01 Sep 2026
24/7 Wall Street
View Source
Bullish
pluang ai news

Synopsys reported a strong Q3 with 42.37% revenue growth to $2.477 billion and raised its full-year guidance, driven by AI-driven design complexity and successful integration of Ansys. Despite this, the stock trades at a lower forward P/E of 27 compared to its main rival Cadence's 43, even though Synopsys is growing faster. The company’s advancements in AI workflows and broadening IP portfolio support a bullish outlook with a price target of $552.60, implying nearly 25% upside. Risks include debt from the Ansys acquisition and export controls on China, but the market may be underestimating Synopsys's growth potential.

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