Synopsys (NASDAQ: SNPS) is one of the world’s two leading players in the electronic design automation (EDA) industry, along with Cadence Design Systems (NASDAQ: CDNS). The company plays a critical role in advanced semiconductor development. Without top-tier EDA software, creating leading-edge semiconductor designs is nearly impossible.
Despite Synopsys’s importance, the stock has struggled to gain traction even as the artificial intelligence boom is in full swing. Since the beginning of 2025, Synopsys shares are essentially flat. This comes after the stock dived 8.6% following the company's latest earnings report.
