Synopsys (SNPS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Marvell Technology gains an edge over Synopsys in the fast-growing AI and data center interconnect market as Synopsys faces margin and competition pressures.
Synopsys is upgraded from Hold to Buy, with a 12% upside to $502, following successful Ansys integration and resilient financials. Post-Ansys deal, SNPS aggressively manages debt, optimizes operations, and divests non-core assets, supporting double-digit growth prospects. Q3 saw 14% revenue growth, driven by EDA segment strength, despite Design IP weakness from China export restrictions and a major customer issue.
Synopsys' AI-driven EDA push can't offset falling margins, Design IP weakness, and a stretched valuation that make the stock a sell.
Synopsys' EDA dominance, deep client integration, and IP portfolio ensure resilience; recent weakness stems from execution timing, not competitive or structural erosion. Rising chip complexity, AI-driven design, and the Ansys acquisition expand long-term TAM across automotive, aerospace, and industrial markets, sustaining durable multi-year growth visibility. Current softness in IP merely reflects short-term operational missteps, not decay.
In the closing of the recent trading day, Synopsys (SNPS) stood at $453.35, denoting a +1.28% move from the preceding trading day.
In the most recent trading session, Synopsys (SNPS) closed at $448, indicating a +2.07% shift from the previous trading day.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Synopsys (SNPS) stock should be on your watchlist. Here is why.
In the closing of the recent trading day, Synopsys (SNPS) stood at $484.41, denoting a -1.01% move from the preceding trading day.
Synopsys (SNPS) reported earnings 30 days ago. What's next for the stock?
SNPS' record $10.1 billion backlog, fueled by AI-driven tools and the Ansys boost, signals strength amid rising EDA competition.