After a strong multi-year rally, Synopsys (NASDAQ: SNPS) shares have pulled back in recent months, bringing the stock closer to a key technical support zone. The company, a leader in electronic design automation (EDA) software, has been a consistent performer, benefiting from the growing complexity of semiconductor design and rising demand for AI-driven chips.
Recently, Zacks.com users have been paying close attention to Synopsys (SNPS). This makes it worthwhile to examine what the stock has in store.
In the latest trading session, Synopsys (SNPS) closed at $395.6, marking a -1.29% move from the previous day.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
In the closing of the recent trading day, Synopsys (SNPS) stood at $409.11, denoting a -1.74% move from the preceding trading day.
In the closing of the recent trading day, Synopsys (SNPS) stood at $442.93, denoting a -2.73% move from the preceding trading day.
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.