SNPS
A buy call with a side of AI hype
Synopsys just got the analyst treatment: Rosenblatt’s Blair Abernethy reiterated a Buy rating and $575 price target, basically saying the company’s growth engine still has plenty of fuel in the tank. That matters because SNPS isn’t just another chip-software name — it’s the plumbing behind how modern chips get designed, verified, and optimized.
Why the market cares
Abernethy thinks third-quarter results should land roughly where Wall Street expects, with revenue growth around 40% year over year. The big drivers? A mix of AI-chip demand, rising chip R&D spending, more design complexity, and the company’s expanding Synopsys.ai tools. In plain English: the arms race to build smarter chips is still making Synopsys look very useful.
The Ansys factor is getting louder
The note also points to the Ansys acquisition, which closed in July 2025, as a meaningful growth booster. Rosenblatt says Synopsys will share more on the integration plan at its Investor Day on September 30, along with updates on medium-term targets and its agentic AI product strategy.
That’s the part investors will actually squint at. If management sounds confident on integration, cross-sell, and the AI roadmap, the market may keep rewarding the stock. If not, well, synergy speeches have a way of aging like milk.
Big picture
Synopsys looks like it’s riding two waves at once: the AI chip buildout and the Ansys merger math. If both keep moving in the right direction, this isn’t just a one-quarter story — it’s a longer-term rerating setup.