Synopsys, Inc. Website

Synopsys, Inc.

NasdaqGS-SNPS

Company Overview

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. The company offers Fusion Design Platform that provides digital design implementation solutions; Verification Continuum Platform that provides virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, it provides Platform Architect solutions for SoC architecture analysis and optimization; virtual prototyping solutions; and HAPS FPGA-based prototyping systems, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, the company offers security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Mountain View, California.

  • Name

    Synopsys, Inc.

  • CEO

    Sassine Ghazi

  • Website

    www.synopsys.com

  • Sector

    Software

  • Year Founded

    1986

Company Statistics

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Bulls Say

  • Synopsys’ wide moat stems from high customer switching costs and intangible assets that virtually no other software vendor or startup can match.

  • Secular tailwinds will drive new chip design starts, raise R&D intensity, and open up new markets for semiconductor-focused EDA tools, leading to excess revenue growth for 10 or more years.

  • Synopsys’ margins should only improve, supported by improving IP margins, greater AI-driven wallet share, and internal AI/ML optimizations that enhance operational efficiency.

Bears Say

  • Slower growth in IP revenue and even lower margins could continue as the business transitions to more custom, chiplet-focused sales.

  • The Ansys acquisition is complex, and may not produce the synergies or growth Synopsys is counting on.

  • Geopolitical tensions with China and China’s focus on supporting domestic companies could affect Synopsys’ ability to do business in the region and lead to slower revenue growth.

Source: Morningstar Analysis - Sep 15, 2025

What's happening

Nov 6, 2025 - Dec 6, 2025

Synopsys Inc. Soars on Nvidia Partnership Despite Mixed Analyst Sentiment

  • Nvidia's $2 billion investment in Synopsys boosts investor confidence and stock performance.
  • Mizuho analyst reiterates an Outperform rating, enhancing positive market sentiment.
  • Wells Fargo expresses caution with a downward price target adjustment due to disappointing Q3 results.

Over the past month, Synopsys Inc. (SNPS) saw a significant increase of 14.1% in its stock price, outperforming the S&P 500's return of just 1.2%. This impressive performance can be largely attributed to key developments that positively influenced investor sentiment surrounding the company.

A pivotal factor driving SNPS's upward trajectory was Nvidia’s announcement on December 1st regarding a strategic partnership that included a $2 billion investment in Synopsys common stock at $414.79 per share. This collaboration aims to integrate Nvidia’s AI technologies with Synopsys’ engineering solutions, which enhances design capabilities across various industries such as semiconductor and automotive sectors. The news generated substantial interest among investors, resulting in notable gains for SNPS shares immediately following the announcement.

In addition to this partnership, Mizuho analyst Siti Panigrahi reiterated an Outperform rating on Synopsys after Nvidia’s investment became public knowledge, further bolstering positive sentiment around the company's future prospects. Social media discussions also highlighted this momentum by emphasizing how Nvidia’s backing is perceived as strong endorsement amid rising research and development spending within technology sectors.

However, not all news was favorable during this period; Wells Fargo maintained an Equal-Weight rating while adjusting its price target downward due to disappointing financial results from Q3 2025. The reported revenue fell short of expectations at $1.740 billion with net income dropping by 43% year-over-year due to challenges within their Design IP business segment.

Despite these bearish signals from analysts like Wells Fargo, overall market enthusiasm remained robust throughout December driven largely by strategic partnerships and industry trends favoring companies involved in electronic design automation (EDA). Citi initiated coverage with a Buy rating and set an ambitious price target of $580 based on anticipated growth opportunities linked to increasing chip complexity driven by artificial intelligence innovations.

Ultimately, while some caution persisted regarding specific operational challenges faced by SNPS reflected through analyst ratings adjustments, overwhelming bullish sentiment stemming from strategic partnerships allowed it to significantly outperform both the broader S&P index—by overperformance of 12.9%—as well as its sector peers; specifically, Synopsys Inc outperformed the Information Technology (XLK) sector by 64.4%.

NasdaqGS:SNPS