NASDAQ:SNPS
Synopsys Inc (SNPS-Q)
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Apr 16, 2025, 12:00 amThis summary was created by AI, based on 4 opinions in the last 12 months.
Synopsys Inc (SNPS-Q) is well-regarded due to its strong competitive position in the duopoly market for computer chip design software. Experts highlight that the company's acquisition of Ansys positions it to further strengthen its grip in this industry, which is anticipated to grow significantly. There are some concerns regarding delays due to UK regulatory approvals, which analysts believe could stabilize the stock and allow it to lead in its sector once resolved. The stock's connection to growing sectors like AI and its critical role in powering Nvidia's GPU chips have contributed to a rise in share prices, despite some recent pullbacks. Analysts are optimistic about future growth, suggesting that the current price presents a buying opportunity.
EPS of $3.39 missed estimates of $3.81. Revenue of $1.74B missed estimates of $1.77B. Synopsys missed fiscal 3Q results due to a major shortfall in its Design IP business (25% of total sales), which fell 7.7% to $428 million, lower by about $125 million than consensus. The factors for the weakness included China export restrictions that disrupted design starts, with an impact on customers beyond the six-week BIS ban, challenges at a major foundry customer and road-map decisions that yielded unfavorable results. Design Automation grew 24% on traction in digital (Fusion Compiler) and its hardware-assisted verification. Fiscal 2025 revenue guidance of $7.045 billion at the midpoint is lower than expected, given Ansys' quarterly sales of $600 million. Mixed end markets remain, with industrial, autos and mobile trailing AI/high-performance computing. Some drop in the stock is certainly warranted, but 34% seems harsh. Good earnings growth is still forecasted, but investors are a bit skittish because of the new large debt level with the Ansys deal. We would not expect much for the balance of the year and would not add here, but we think it is still a solid company with a good overall outlook.
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Premium contentHowever, if you want a higher return and can swallow the risk, then SNPS on the Nasdaq could more your speed. The tech company enjoys a duopoly in semiconductor design. Their Anysys acquisition should add value, while AI will continue to be a tailwind. Its EBITDA per share growth lies in the top 10% com-pared with peers globally. Earnings are robust and have beaten in the last four quarters with room to spare.
Still owns this and CDNS and Ansys stock, a peer, which dominate this space. The stock is stuck because it's stuck in UK regulations, though he expects it to be approved next year. When it does, SNPS will be the king of this space. His price target is $648. They last beat the top and bottom lines. Buy this at $440-460 or even now.
Their software is powering Nvidia to make GPU chips. SNPS shares have run up as a result, though weakened in the past month. Price-to-cash flow is estimated to fall between 2025 and 2026, so the street expects the company to grow a lot. He believes AI will continue to grow. SNPS's valuation isn't extreme like others in AI.
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)
Synopsys Inc(SNPS-Q) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 3
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 3
Synopsys Inc(SNPS-Q) Frequently Asked Questions
What is Synopsys Inc stock symbol?
Synopsys Inc is a American stock, trading under the symbol SNPS-Q on the NASDAQ (SNPS). It is usually referred to as NASDAQ:SNPS or SNPS-Q
Is Synopsys Inc a buy or a sell?
In the last year, 3 stock analysts published opinions about SNPS-Q. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Synopsys Inc.
Is Synopsys Inc a good investment or a top pick?
Synopsys Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Synopsys Inc.
Why is Synopsys Inc stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Synopsys Inc worth watching?
3 stock analysts on Stockchase covered Synopsys Inc In the last year. It is a trending stock that is worth watching.
What is Synopsys Inc stock price?
On 2025-09-17, Synopsys Inc (SNPS-Q) stock closed at a price of $425.4.
The competitor to CDNS. Just finished acquisition of third-largest designer software firm. Digestion problems on that, so stock dropped 35% on reporting. Report was good, but "whisper" numbers were a heck of a lot higher.
Great place to buy. He'd actually sell some puts at just a little bit lower, to get some income. If you get hit at your strike price, then you're buying a little bit lower.