Synopsys stock seen undervalued with 25% upside amid strong AI-driven growth and raised guidance.

Synopsys shares have fallen 15.45% this year despite strong fundamentals, including a 42.4% revenue increase and raised 2026 guidance. The company benefits from AI demand in silicon design and engineering simulation, with a price target of $496.97 implying 25.13% upside. Key growth drivers include AI agentic EDA adoption and synergies from Ansys integration, while risks involve China export controls and high P/E valuation. The stock is viewed as attractively priced compared to competitors Cadence and Autodesk, with bullish scenarios reaching above $570 in 12 months.