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With a market cap of $72.3 billion, Synopsys, Inc. (SNPS) is a leading provider of electronic design automation (EDA) software and intellectual property (IP) solutions for the semiconductor and electronics industries. Itoperates across two main segments, Design Automation and Design IP, delivering AI-driven EDA tools, reusable IP blocks, and system-on-chip (SoC) infrastructure to accelerate innovation and time-to-market.
Companies valued at more than $10 billion are generally considered “large-cap” stocks, and Synopsys fits this criterion perfectly. The company offers a comprehensive suite of tools and technologies that support the entire chip design process, from concept and logic synthesis to functional verification and manufacturing.
Despite this, shares of the Sunnyvale, California-based company have declined 25.4% from its 52-week high of $624.80. SNPS stock has increased 4.7% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 5.7% rise over the same time frame.
In the longer term, SNPS stock is down 3.9% on a YTD basis, underperforming NASX’s marginal gain. Moreover, shares of Synopsys have declined nearly 17% over the past 52 weeks, compared to NASX’s 15.3% return over the same time frame.
Despite recent fluctuations, the stock has been trading mostly below its 50-day and 200-day moving averages since last year.
Despite reporting better-than-expected Q2 2025 adjusted earnings of $3.67 per share on May 28, Synopsys shares fell 1.6% the next day. The drop followed news that the Trump administration ordered the company to halt sales to Chinese chipmakers, jeopardizing a significant revenue stream, as China accounted for 16% of Synopsys' $6.1 billion in 2024 revenue. Investor sentiment was further weighed down by the ongoing U.S.-China chip tensions, including unresolved scrutiny over past dealings with Huawei.
Moreover, Synopsys has underperformed its rival, Microsoft Corporation (MSFT). MSFT stock has gained 11.4% over the past 52 weeks and nearly 10% on a YTD basis.
Despite the stock’s weak performance, analysts remain bullish on Synopsys. The stock has a consensus rating of “Strong Buy” from 18 analysts in coverage, and as of writing, SNPS is trading below the mean price target of $597.50.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
