Synopsys (SNPS) shares jumped 13% on Thursday after the chip-design software maker issued fiscal 2027 revenue and profit forecasts above analysts' expectations and announced multi-year agreements with OpenAI and Amazon Web Services. The company outlined its long-term growth targets at its 2026 Investor Day in New York, highlighting demand for chip-design and simulation tools as artificial intelligence investment drives increasingly complex semiconductor development.
AMZN's $1B+ Synopsys deal boosts custom chips and AWS growth, but heavy capex, competition and valuation temper the near-term outlook.
Synopsys is one of the best-performing stocks in the S&P 500 and Nasdaq today after the chip design software maker struck some major AI deals.
Wall Street analysts left Synopsys's Investor Day with sharply raised price targets and a growth outlook that surprised even the optimists, and the fresh deals with OpenAI and AWS may explain why the stock surged before most investors saw it
Synopsys, Inc. is rated Strong Buy with a $771 price target, driven by agentic AI integration and a robust EDA/IP growth outlook. SNPS's Factory 2 model and upcoming royalty business are expected to generate margin-accretive, recurring revenue starting in eFY28, supporting durable mid-teen growth. Major multi-year agreements, such as the $1B+ Amazon deal, and partnerships with OpenAI position SNPS for leadership in custom silicon and AI-driven chip design.
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.
Synopsys stock was rising as new partnerships with OpenAI and Amazon strengthen its case to be a beneficiary of artificial intelligence.
Synopsys is upgraded to a buy, positioned as a stable AI-enabler with resilient software-driven growth. SNPS's acquisition of Ansys secures an end-to-end chip design lifecycle, supporting predictable revenues and accelerating growth. Management projects mid-teen revenue and mid-20s non-GAAP EPS growth, with FY27 revenue targeted at up to $11.2 billion.
Synopsys, Inc. (SNPS) Analyst/Investor Day Transcript
Synopsys NASDAQ: SNPS used its Investor Day to outline a higher long-term growth outlook, driven by demand for application-specific silicon, AI-enabled engineering workflows and the integration of Ansys simulation technology.
Synopsys software sits inside nearly every advanced AI chip on the market, yet the stock trades at a fraction of its closest rival's multiple.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?