Synopsys stock down but poised for 9.4% gain by end-2026 amid strong AI chip design demand.

Synopsys shares have declined over 10% in the past month, trading at $448.38, pressured by high debt and profit compression despite strong Q2 2026 results with 42% revenue growth and raised guidance. The company remains a key player in chip design software, essential for AI chip development, supporting a constructive outlook with a 24/7 Wall St. price target of $490.68 by year-end 2026, implying about 9.4% upside. Risks include integration challenges and legal issues, but growth in AI-driven markets and expanding margins could drive recovery. Longer-term projections see potential stock gains up to $860 by 2030 if Synopsys continues executing well and AI demand holds.