Synopsys stock seen rising 23% after strong Q2 and AI-driven growth outlook

Synopsys reported a strong Q2 FY26 with 42% revenue growth and raised its full-year guidance, driven by AI demand in semiconductor design. Despite a recent stock pullback, analysts remain bullish, projecting a 23% upside to $561.40 and a potential rise to $667 if Ansys acquisition synergies accelerate. Risks include high debt and export controls to China, but the company’s non-GAAP earnings and cash flow remain strong. Long-term projections show continued growth if AI-driven complexity and Ansys integration proceed as expected.