NASDAQ:SNPS

Synopsys Inc (SNPS)

393.84
-22.47 (5.40%)
as of Sep 4, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconSep 5, 2026, 12:00 am

This summary was created by AI, based on 7 opinions in the last 12 months.

Synopsys Inc (SNPS-Q) is viewed as an indispensable player in the electronic design automation software industry, often described as the 'ultimate AI play'. While the company has encountered challenges, such as missed earnings expectations and revenue, particularly from its Design IP business significantly affected by external factors like China export restrictions, analysts believe the stock still offers solid growth potential. Notably, Synopsys' acquisition of a major designer software firm has contributed to recent volatility in its stock price, which has been down by 35% from last summer's high. Experts highlight the company's strong position alongside a key partner in Nvidia and note the appeal of the stock as a buying opportunity after the recent dip. There is an overall expectation for improved earnings growth in the future, despite current market skittishness due to their recent debt level resulting from acquisitions.

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Consensus
Positive
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Valuation
Undervalued
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CDNS
TOP PICK

Took off once the US 10-year rate came down. Profitable, but highly leveraged. Electronic design automation products to design and test integrated semiconductor circuits. Lots of horses. Leader in EDA, which will help semi industry with labour shortages. Buy here around $518, again just shy of $500. Shouldn't go under $470, and definitely not under $450. No dividend.

(Analysts’ price target is $611.38)
BUY

They do electronic design automation for all the chips, including Nvidia's. They report in two weeks. Is up 50% since breaking out in June.

BUY

Today they reported strong: in-line revenue, an earnings beat, and raised revenue and earnings guidance. Shares rallied after hours. That said, they said the CEO will resign to become the chair of the board.

DON'T BUY
Semi stocks have come down too far, but there are better and cheaper ones than SNPS.
Unspecified
One of two companies that dominate in the electronic design automation space. There is a technology overhang of software so the downside is that software is out of favour now. Also potentially affected by the shortage in semi-conductors, There is good growth in the old economy so investors already have their investment positions in software.
PAST TOP PICK
(A Top Pick Jun 10/21, Up 19.66%) Although down, it is good value. Makes software for testing chips and there are many chip designing/making companies. It is a long term compounder of capital and the runway is compelling.
TOP PICK
Shovels and pick axes for people who make computer chips. Virtual reality tools for designers. Instead of investing in a capital intensive miner, invest in the company that has the IP to help the miners manufacture new chips. (Analysts’ price target is $383.47)
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They saw some decline today but recouped somewhat. Sales missed estimates and they announced a small per share loss. Margins remain stable and they saw an analyst upgrade. Strong growth is expected for the next few years and their financial position remains healthy. Unlock Premium - Try 5i Free

PAST TOP PICK
(A Top Pick Jun 10/21, Up 14%) Correction represents an outstanding opportunity. The company represents outstanding value. World leader in design. Great long-term player, though will be volatile. Can easily buy it here.
PAST TOP PICK
(A Top Pick Aug 31/20, Up 32%) A very fine company. Has moved to the sidelines since he thinks the company has achieved maximum movement. Continues to watch this area. Has some steep competition so moved out. Prefers to be more oriented towards auto-motives and aerospace.
TOP PICK
Design and consulting for the semiconductor industry. All the big tech firms use them. Consistent long-term grower. Fabulous future. Lots of room to grow. On sale here. No dividend. (Analysts’ price target is $304.46)
TOP PICK
They produce design software that semi companies use to design their chips. This and another are the only companies to supply this service, a tailwind. SNPS is like the picks and shovels company in the gold rush, companies that were guaranteed to make money, the real money. (Analysts’ price target is $219.63)
PAST TOP PICK

(A Top Pick Jun 06/19, Up 23%) A maker of computer software for chip manufacturing. They are benefiting from the trend of more AI, cloud and autonomous driving. Chips are getting more complex and the need for software is increasing. He liked their recent earnings report. A time to add to a position.

TOP PICK

A past Top Pick. He likes how they are positioned for their software integrity and testing. As semi-conductor chips are becoming more complex their software is growing in demand. They are insulated from any shocks like in China as he expects companies to continue to funnel money into R&D. Yield 0% (Analysts’ price target is $175.17)

BUY

An electronic design automation company. He likes it because it is not super cyclical. Companies like AAPL-Q are designing their own chips and this gives them a barrier to entry. He has liked it over the long term.

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