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About

Synopsys is the world leader in electronic design automation software used by chip designers to architect, simulate, and verify semiconductor designs before fabrication. The company also provides silicon IP blocks and application security testing tools, giving it multiple revenue streams tied to the chip industry. Investors value Synopsys for its essential role in enabling every new generation of processors, from mobile chips to AI accelerators.

AI Stocks

Synopsys AI-driven chip design tools dramatically reduce the time and cost of creating custom AI accelerators, positioning the company as both an enabler and beneficiary of the artificial intelligence boom.

Growth Stocks

With a near-duopoly position in EDA software, a growing silicon IP business, and expanding applications in security testing, Synopsys offers durable double-digit revenue growth with high recurring revenue.

Tech Stocks

Synopsys provides the electronic design automation software that chip designers use to create every new processor, making it an indispensable tool in the semiconductor technology ecosystem.

Key Financials SNPS

Price $437.09
Change (1D) +3.25%
Change (30D) -6.95%
Change (60D) +12.01%
Change (90D) -8.60%
Change (180D) -5.48%
Change (1Y) -14.25%
Change (5Y) +57.14%
P/E Ratio 73.46
EPS (TTM) $5.95
52-Week Range $365.74 โ€” $651.73
50-Day MA $475.85
Volume 1.74M

Data updated Feb 15 ยท Source: Twelve Data

4.3 2 reviews

AI Reviews

๐Ÿค–
4.1 /5

Synopsys is the undisputed leader in electronic design automation (EDA), providing essential software tools for semiconductor chip design"a critical enabler of the AI revolution. The company holds a dominant duopoly position alongside Cadence Design Systems, creating a formidable competitive moat with extremely high switching costs.

The bull case centers on secular tailwinds: surging AI chip complexity drives demand for increasingly sophisticated design tools, and Synopsys is embedding AI directly into its platforms (DSO.ai) to accelerate chip development. Revenue growth has been consistently strong, and the pending Ansys acquisition could create a powerful design-to-simulation platform.

However, the current valuation demands scrutiny. A P/E of 73.5x is steep, and the stock sits roughly 33% below its 52-week high, reflecting investor concerns about growth deceleration and regulatory risks around the Ansys deal. The 14% decline over the past year underperforms the broader tech sector significantly.

The bear case includes potential antitrust complications, customer concentration in cyclical semiconductor firms, and a premium valuation that leaves little margin for disappointment. Still, Synopsys's mission-critical position in chip design makes it a high-quality long-term holding, though current prices may warrant patience for a better entry point.

Category Ratings

AI Stocks
4.2
Growth Stocks
3.8
Tech Stocks
4.3
Feb 15, 2026
AI-Generated Review Generated via Anthropic API. This is an automated evaluation, not a consumer review. Learn more
๐Ÿค–
4.4 /5
Synopsys (SNPS) stands as a critical infrastructure play in the semiconductor industry, holding a dominant duopoly position in Electronic Design Automation (EDA). As the demand for AI-optimized hardware accelerates, chipmakers rely heavily on Synopsys software to manage increasing design complexity. The company's integration of AI into its own tool suite enhances its competitive moat and recurring revenue potential. However, the investment case requires caution regarding valuation; with a P/E ratio exceeding 73 and the stock trading significantly below its 52-week high of $651, expectations are high while technical momentum is currently bearish. Additionally, the complex pending acquisition of Ansys introduces execution risk and uncertainty regarding capital allocation. While the long-term thesis is robust given the secular trends in silicon, the current premium valuation suggests limited margin for error for short-term investors.

Category Ratings

AI Stocks
4.6
Growth Stocks
4.2
Tech Stocks
4.4
Feb 12, 2026
AI-Generated Review Generated via Google API. This is an automated evaluation, not a consumer review. Learn more
Synopsys Screenshot

Added: Feb 11, 2026

synopsys.com