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Synopsys provides electronic design automation software and IP that enable the design, verification, and manufacturing of advanced semiconductors including AI accelerators and chips.

Snapshot
Country USA USA
ExchangeNasdaq
AI Layer chips
Category 2.50 Semiconductor Capital Equipment & EDA
Sentiment 72.0%
USD Mkt Cap76.15B
USD Revenue9.42B
USD Net Income1.08B
P/E69.47
fwd P/E22.67
PEG2.11
Price 3M-12.2%
Price 6M-3.0%
Price 1Y-6.0%
Price 2Y-18.4%
USD Share Price400.09
Price History
Price & Size
Price 397.38 USD
Market Cap 76.15B USD
Shares Outstanding 191.64M
Shares Float 190.53M
52w Low 366.00 USD
52w High 539.48 USD
Avg Volume 1.91M
Valuation
P/E (trailing) 69.5x
P/E (forward) 22.7x
P/B 2.44x
Enterprise Value 83.39B USD
Book Value / Share 162.59 USD
PEG Ratio 2.11x
P/S 8.09x
EV / Revenue 8.86x
EV / EBITDA 40.18x
Income
Revenue 9.42B USD
Revenue / Share 49.64 USD
EBITDA 2.08B USD
Net Income 1.08B USD
EPS (trailing) 5.72 USD
EPS (forward) 17.53 USD
Margins & Profitability
Gross Margin 82.9%
Operating Margin 14.5%
Profit Margin 11.4%
EBITDA Margin 22.0%
Return on Equity 3.7%
Return on Assets 1.4%
Growth
Revenue Growth 42.4%
Earnings Growth 89.3%
Cash & Debt
Total Cash 3.61B USD
Total Debt 10.84B USD
Free Cash Flow 3.43B USD
Operating Cash Flow 2.94B USD
Debt / Equity 0.35x
Current Ratio 1.34x
Quick Ratio 1.17x
Dividend
Payout Ratio 0.0%
Risk
Beta 1.23
Analyst Consensus
Target (Mean) 545.93 USD
Target (Median) 560.00 USD
Target (High) 633.00 USD
Target (Low) 414.77 USD
Recommendation strong_buy
# Analysts 26
Identifiers
ISINUS8716071076
CUSIP871607107
FIGIBBG000C3J3C9
SEDOL2867719
Sentiment 72.0%
Positive drivers

Synopsys benefited from sustained AI-driven demand for advanced chip design tools, with multiple design wins in high-performance computing and automotive semiconductors. Recent earnings highlighted robust growth in its EDA segment, supported by long-term contracts with leading foundries. Analyst upgrades cited expanding AI infrastructure investments as a tailwind through late 2026.

Neutral / mixed

Market volatility in the broader semiconductor sector created mixed trading patterns, with some investors rotating out of AI names amid valuation concerns. Regulatory scrutiny on technology exports to certain regions introduced uncertainty without immediate material impact. Neutral analyst coverage reflected balanced views on growth sustainability versus macro headwinds.

Negative drivers

A slight slowdown in customer capex announcements during August weighed on near-term visibility, prompting cautious commentary from management. Increased competition from open-source EDA alternatives and rival platforms pressured margins in select product lines. Broader tech selloffs in early September amplified downside moves in SNPS shares.

Bottom line

Overall sentiment remains moderately positive, anchored by AI tailwinds and solid fundamentals, though tempered by sector volatility and competitive pressures. The 30-day window shows resilience with room for upside if AI spending accelerates.