Synopsys stock seen rising 22% in 12 months on AI chip demand and strong cash flow.

Synopsys shares have fluctuated significantly but show promise with a 24/7 Wall St. price target of $607.31, implying a 21.84% gain over the next year. The company reported strong Q1 FY2026 results with $2.41 billion revenue, driven by AI chip design demand and a solid $11.4 billion backlog. Management maintains optimistic full-year guidance and has improved cash flow, enabling debt reduction and share buybacks. Risks include U.S.-China export restrictions and high debt, but the overall outlook remains positive with potential for further gains if AI trends and Ansys integration continue to support growth.