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Synopsys, Inc. (SNPS), a global leader in electronic design automation and semiconductor intellectual property, was founded in 1986 and is headquartered in Sunnyvale, California. With a market cap of $87.6 billion, Synopsys delivers cutting-edge solutions enabling the design and development of advanced microchips and systems.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Synopsys firmly fits this category, boasting a market cap that significantly exceeds this benchmark. This highlights its considerable size, influence, and leadership in technology. As a key player in electronic design automation (EDA) and semiconductor intellectual property (IP), Synopsys has established a global presence, providing software, verification tools, and security solutions that drive innovation across semiconductors, automotive, and artificial intelligence.
Synopsys is down 6.6% from its 52-week high of $629.38, achieved on Feb. 22. Over the past three months, SNPS stock has risen by 23.1%, underperforming the iShares Expanded Tech-Software Sector ETF (IGV), which posted a gain of 29.7%.
Over the longer term, SNPS has gained 14.2% on a YTD basis, trailing IGV’s impressive 35.4% return. Similarly, over the past 52 weeks, SNPS achieved a 10.7% gain, significantly underperforming IGV's 40% surge.
SNPS has demonstrated bullish momentum, trading above its 50-day moving average since late October and remaining above its 200-day moving average since late November.
Synopsys has faced headwinds recently, attributed to softer demand for its offerings and heightened market competition. Despite these challenges, the company posted robust fiscal Q4 earnings results on Dec. 4, with revenue climbing 11% year over year to a record $1.64 billion. Adjusted EPS also exceeded expectations, rising 13% annually to $3.40. Looking ahead, Synopsys anticipates achieving double-digit revenue growth in 2025 and remains on schedule to complete the Ansys acquisition in the first half of the year.
Its rival, Palantir Technologies Inc. (PLTR), has soared 279.6% over the past 52 weeks and gained 306.8% on a YTD basis, outpacing SNPS’ gains over both time frames.
Despite underperforming industry peers recently, Synopsys remains a favored stock among Wall Street analysts. The stock holds a consensus "Strong Buy" rating from 17 analysts and has a mean price target of $645.47, suggesting a potential upside of 9.8% from its current price.
