Electronic design automation (EDA) company Synopsys (NASDAQ: SNPS) has recently experienced a resurgence in investor sentiment. Through mid-September, Synopsys shares were down more than 20% year-to-date (YTD). Since hitting its September low, the stock has surged more than 30%, putting shares in the green for the year.
Several key developments have aided the stock’s recovery, including an over $1 billion deal with Amazon (NASDAQ: AMZN) and a development deal with OpenAI. These events signal a potential inflection point in the stock’s trajectory, as Synopsys has so far been a chronic underperformer during the AI investment wave.
