SNPS
New target, same upbeat vibe
Synopsys got a little pre-earnings confetti from Rosenblatt, which kept the stock at Buy and raised its price target from $530 to $575. Translation: one analyst is basically saying, “Yes, the party is still on, and the DJ just got better.”
Why the bulls are smiling
The big engine here is Ansys. Rosenblatt thinks the acquisition is doing a lot of the heavy lifting for revenue growth, with this quarter expected to show roughly $2.25 billion in sales — about 40% higher year over year and inside management’s guidance range. That would also mark the third quarter Synopsys has recognized revenue from Ansys, so the integration story is still very much in its awkward-but-promising honeymoon phase.
But it’s not just M&A sugar rush. The analyst also pointed to:
- stronger EDA demand,
- higher chip R&D spending,
- growing design complexity,
- and more AI-chip programs from hyperscalers and big systems players.
That’s a lot of jargon, sure, but the simple version is: when chips get more complicated, companies need more Synopsys software to design them. And if AI keeps eating the world, Synopsys gets to sell more shovels.
The investor takeaway
The Street expects non-GAAP EPS of $3.13 on the quarter, just a hair under consensus, while management could also lean into full-year guidance of around $9.608 billion in revenue. The other juicy detail? Rosenblatt thinks Synopsys.ai adoption should keep picking up, and China revenue could improve later in the year if the market recovery holds and U.S. trade constraints stay looser.
Big picture: this isn’t a “wow, surprise moonshot” note. It’s more like a solid vote of confidence that Synopsys is still one of the cleanest ways to play the chip-design arms race.