Synopsys is a provider of electronic design automation software and intellectual property products... Show more
Synopsys, Inc. is a leader in electronic design automation (EDA), providing the software and semiconductor intellectual property (IP) that engineers use to design and verify increasingly complex integrated circuits. Following the completion of its roughly $35 billion acquisition of Ansys in July 2025, the company also spans multiphysics simulation and analysis, positioning itself as an end-to-end "silicon to systems" engineering platform. Headquartered in Sunnyvale, California, Synopsys serves customers across semiconductors, automotive, aerospace, industrial, and high-performance computing markets. Investors follow the stock closely because it sits at the center of AI-driven chip design, custom silicon development, and the broader semiconductor infrastructure buildout.
Over the trailing 30 days, SNPS advanced from a closing price of $397.38 on September 11, 2026 to $502.51 on October 12, 2026, a gain of about 26%. The move was not linear: shares pulled back to a trough near $368 in mid-September before reversing sharply higher in late September and early October, culminating in a 12.8% single-session jump on October 1.
Measured over the trailing quarter, the stock is up roughly 16%, rising from approximately $434 in mid-July to the $502 level in mid-October. The quarterly trend reflects a volatile period marked by a post-earnings spike in late August, a corrective pullback through September, and a strong rally following the October Investor Day.
The decisive catalyst was Synopsys' 2026 Investor Day, held in early October. Management issued fiscal 2027 revenue guidance of $11.1 billion to $11.2 billion, implying roughly 15% year-over-year growth and coming in above the consensus estimate of about $10.8 billion. The company also raised its longer-term targets, guiding to approximately 15% annual revenue growth through fiscal 2030 and a non-GAAP operating margin approaching 50% by fiscal 2030.
Alongside the guidance, Synopsys announced a multi-year partnership with OpenAI to co-develop GPT-Synopsys, a specialized AI model for semiconductor design, and a multi-year agreement with Amazon (AMZN) worth more than $1 billion to accelerate custom silicon development, including a royalty-based component. The announcements sparked a round of analyst price-target increases from firms including Deutsche Bank, KeyBanc, Rosenblatt, and Wells Fargo, reinforcing the positive momentum in the shares.
The broader multi-month move has been shaped by two themes. First, Synopsys reported fiscal third-quarter results in late August that exceeded expectations, with revenue of $2.48 billion, up 42% year over year, and adjusted earnings per share of $3.91. Management also raised full-year fiscal 2026 guidance, reflecting strong demand for EDA tools and IP tied to AI infrastructure.
Second, the market has increasingly viewed Synopsys as a direct beneficiary of the custom-silicon and AI-chip boom, as hyperscalers and semiconductor companies invest heavily in next-generation accelerators. The continued integration of Ansys and the rollout of agentic AI design tools have reinforced the narrative that Synopsys is positioned to monetize rising chip-design complexity rather than be displaced by it. These factors supported the recovery from the September pullback and set up the October surge.
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Looking ahead, investors will focus on Synopsys' fourth-quarter and full-year fiscal 2026 results, expected after the fiscal year ends on October 31, 2026. Key areas to monitor include execution of the Ansys integration, the pace of cost-synergy realization, and whether the new OpenAI and Amazon partnerships translate into durable, high-margin revenue. The shift toward royalty- and usage-based pricing could meaningfully influence the revenue model over time. Broader risks include export-control and regulatory developments, exposure to China, competitive pressure from peers such as Cadence Design Systems (CDNS), and a valuation that leaves limited room for execution missteps. As always, these considerations are informational and not a recommendation to buy or sell.
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SNPS saw its Momentum Indicator move below the 0 level on October 15, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned negative. In 58 of the 81 cases, the stock moved further down in the following days. The odds of a decline are at 72%.
The 10-day RSI Indicator for SNPS moved out of overbought territory on October 13, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 25 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 69%.
The Moving Average Convergence Divergence Histogram (MACD) for SNPS turned negative on October 16, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 30 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
SNPS moved below its 50-day moving average on October 22, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SNPS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for SNPS crossed bullishly above the 50-day moving average on September 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 77%.
Following a +18.18% 3-day Advance, the price is estimated to grow further. Considering data from situations where SNPS advanced for three days, in 249 of 339 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
SNPS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 142 of 236 cases where SNPS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 60%.
The Tickeron PE Growth Rating for this company is 21 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. SNPS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 71 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SNPS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron Valuation Rating of 82 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.646) is normal, around the industry mean (16.524). P/E Ratio (74.419) is within average values for comparable stocks, (59.084). Projected Growth (PEG Ratio) (2.237) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.210) among similar stocks. P/S Ratio (7.675) is also within normal values, averaging (103.889).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 86 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of software based designing solutions for the semiconductor industry
Industry ComputerCommunications