SNPS - Synopsys, Inc.
While the AI spotlight stays fixed on megacap darlings, one under-the-radar software company quietly sits at the center of every chip those giants design, and analysts are starting to notice the gap between its valuation and its growth.
Electronic design automation (EDA) company Synopsys NASDAQ: SNPS has recently experienced a resurgence in investor sentiment. Through mid-September, Synopsys shares were down more than 20% year-to-date (YTD).
Synopsys leads in Electronic Design Automation software, vital for AI chip production, with major contracts from Amazon and OpenAI accelerating its profile. SNPS posted 42% Y/Y revenue growth in Q3, with EDA software comprising 51.8% of total revenues and operating income surging 116% Y/Y. Valuation stands at a 8.8x forward price-to-revenue ratio, a 7% discount to its 3-year average, justified by robust deal flow and AI-driven demand.
After several years where the stock languished, Synopsys now has multiple bullish catalysts.
Synopsys's chip design software is becoming essential as AI makes chips more complex, fueling the company's growth. Nvidia invested $2 billion in Synopsys, and the pair are building agentic AI workflows for chip design and verification.
Before a single AI chip reaches a fab, it passes through Synopsys software, and that chokepoint keeps getting harder to route around.
Investors interested in Computer - Software stocks are likely familiar with Progress Software (PRGS) and Synopsys (SNPS). But which of these two stocks offers value investors a better bang for their buck right now?
ASML is enjoying strong demand for the machines that print the circuits on GPUs. Synopsys provides the software that every GPU is designed on.
Synopsys has beaten earnings estimates three times this year, yet shareholders have walked away from each report with less than they started.
In the race to dominate AI, most of the attention has fallen on the big cloud and AI giants snapping up chips by the truckload from the likes of NVIDIA Corporation NASDAQ: NVDA. Yet some of the smartest moves are arguably being made by those quietly building their own.
AI is changing how chips are designed and the companies that design them.
What happened Synopsys, Inc. (NASDAQ: SNPS) said Oct. 5, 2026 that it entered an accelerated share repurchase to buy back $1 billion of stock. JPMorgan Chase Bank, National Association is the counterparty to the agreement. Under the terms, Synopsys expects an initial delivery of approximately 1,735,000 shares. The company said the deal is an ASR.
SUNNYVALE, Calif., Oct. 5, 2026 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced that it has entered into an accelerated share repurchase agreement (ASR) with JPMorgan Chase Bank, National Association to repurchase an aggregate of $1 billion of Synopsys stock.
Synopsys CEO Sassine Ghazi discusses the company's artificial intelligence chip design partnerships with Amazon and OpenAI on ‘The Claman Countdown.' #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #theclamancountdown #synopsys #sassineghazi #ghazi #amazon #openai #artificialintelligence #ai #technology #tech #chips #semiconductors #chipdesign #aichips #innovation #markets #business
Synopsys just surged to lead the Nasdaq 100 after a blockbuster Investor Day packed with OpenAI partnerships, Amazon deals, and a raised earnings outlook.
Synopsys earns a buy rating, driven by AI-fueled chip complexity and the transformative Ansys acquisition, expanding its addressable market beyond traditional EDA. Q3 FY26 revenue surged to $2.477B, with Design Automation comprising over 80% of sales; non-GAAP EPS rose to $3.91. Ansys integration enables Synopsys to address system-level modeling, with Multiphysics Fusion technology signaling long-term growth beyond silicon design.
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.
Synopsys stock rose after the company's investor day presentation focused on growth from AI-assisted chip design tools.
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.