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Valued at a market cap of $94 billion, Synopsys, Inc. (SNPS) is a global leader in electronic design automation (EDA), silicon IP, and system simulation solutions, providing tools for chip design, verification, and manufacturing analytics. Headquartered in Sunnyvale, California, it plays a critical role in advancing AI-driven chip innovation across industries, like automotive, aerospace, and consumer electronics.
Shares of SNPS have underperformed the broader market over the past 52 weeks. SNPS has dropped 10.7% over this period, while the broader S&P 500 Index ($SPX) has gained 16.1%. However, shares of SNPS are up 25% on a YTD basis, outpacing SPX’s 10% rise during the same time frame.
Looking closer, Synopsys has also lagged behind the Technology Select Sector SPDR ETF Fund’s (XLK) 19.1% rise over the past 52 weeks and 12.9% gain in 2025.
On July 17, SNPS shares soared 1.4% after the company completed its acquisition of Ansys, creating a combined leader in silicon design, IP, and simulation solutions. The deal strengthens Synopsys’ ability to drive AI-powered product innovation and expands its total addressable market to $31 billion.
For the fiscal year ending in October 2025, analysts expect SNPS’ adjusted EPS to increase 6.2% year-over-year to $10.88. The company's earnings surprise history is robust. It beat the consensus estimates in the past four quarters.
Among the 20 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
The current consensus is bullish than two months ago when the stock had 15 “Strong Buy” suggestions.
On Aug. 11, Morgan Stanley analyst Lee Simpson reiterated an “Overweight” rating on Synopsys and raised the price target from $540 to $715, which is the Street-high target.
The mean price target of $646.84 represents a premium of 6.6% over current price levels.
On the date of publication, Kritika Sarmah 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.
