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Synopsys upgraded to buy on strong AI-driven growth and chip design expansion

Analyst Insights
01 Oct 2026
Seeking Alpha
View Source
Bullish
Synopsys upgraded to buy on strong AI-driven growth and chip design expansion

Synopsys has been upgraded to a buy rating due to its stable growth driven by AI and software. The company's acquisition of Ansys enhances its chip design lifecycle capabilities, supporting predictable revenue streams and accelerating growth. Management forecasts mid-teen revenue growth and mid-20s non-GAAP EPS growth, targeting up to $11.2 billion in revenue by fiscal year 2027. Trading at 28 times earnings, Synopsys may see a valuation boost as it resumes $1 billion in share buybacks and continues deleveraging.

Synopsys (SNPS) shares are trading at USD 448.50 as of Oct 01, 2026 18:13 WIB on Pluang, up 3.12% for the day. This price is closer to its 52-week low of USD 367.70 than its 52-week high of USD 534.56, suggesting room for growth relative to its recent peak. The stock's market cap stands at $83.35 billion, with strong buy interest from Pluang investors, as 92% of order activity is buy versus 8% sell.

More News (SNPS)

Synopsys raises growth outlook and price targets after strong Investor Day and new AI partnerships.

Synopsys raises growth outlook and price targets after strong Investor Day and new AI partnerships.

Synopsys impressed Wall Street at its Investor Day, leading BofA and KeyBanc to raise price targets to $600 and $605 respectively, citing a strong growth outlook driven by AI demand. The company reported fiscal Q3 2026 revenue of $2.48 billion, beati...

Analyst Insights
Bullish
4 hours ago
Synopsys rated Strong Buy with $771 target on AI integration and growth in semiconductor design.

Synopsys rated Strong Buy with $771 target on AI integration and growth in semiconductor design.

Synopsys, Inc. is rated Strong Buy with a $771 price target due to its integration of agentic AI into its electronic design automation (EDA) platform and a strong outlook for growth in EDA and intellectual property (IP). The company’s Factory 2 model...

Analyst Insights
Bullish
5 hours ago
Synopsys raises 2027 revenue target to $11.15B, plans $1B share buyback amid AI-driven growth.

Synopsys raises 2027 revenue target to $11.15B, plans $1B share buyback amid AI-driven growth.

Synopsys announced an updated long-term growth strategy driven by AI expansion, expecting 15% revenue growth in fiscal 2027 to about $11.15 billion. The company is expanding its silicon IP business and partnering with OpenAI to develop AI-powered chi...

Market News
Bullish
1 day ago
OpenAI and Synopsys partner to develop GPT-Synopsys, an AI model revolutionizing chip design with advanced automation.

OpenAI and Synopsys partner to develop GPT-Synopsys, an AI model revolutionizing chip design with advanced automation.

OpenAI and Synopsys have formed a multi-year strategic partnership to create GPT-Synopsys, a specialized AI model that integrates OpenAI's advanced AI with Synopsys' electronic design automation (EDA) tools. This collaboration aims to accelerate semi...

Market News
Bullish
1 day ago
Synopsys and Amazon sign $1B+ deal to boost custom chip and AI engineering for AWS infrastructure.

Synopsys and Amazon sign $1B+ deal to boost custom chip and AI engineering for AWS infrastructure.

Synopsys and Amazon have entered a multi-year agreement worth over $1 billion to accelerate the development of Amazon's custom silicon chips and AI-powered cloud infrastructure. This deal expands Synopsys' silicon IP business with Amazon as the lead ...

Market News
Bullish
1 day ago
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