
SNPS is expanding its AI-focused Design IP business as demand for high-speed connectivity grows, with rising design wins and automotive adoption supporting growth.
Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.
| Revenue (TTM) | $9.42B |
| Gross Profit (TTM) | $7.81B |
| EBITDA | $2.08B |
| Operating Margin | 14.50% |
| Return on Equity | 3.66% |
| Return on Assets | 1.35% |
| Revenue/Share (TTM) | $49.64 |
| Book Value | $162.59 |
| Price-to-Book | 2.52 |
| Price-to-Sales (TTM) | 9.25 |
| EV/Revenue | 9.1 |
| EV/EBITDA | 22.94 |
| Quarterly Earnings Growth (YoY) | 89.30% |
| Quarterly Revenue Growth (YoY) | 42.40% |
| Shares Outstanding | $191.64M |
| Float | $190.52M |
| % Insiders | 2.99% |
| % Institutions | 93.33% |
Volatility is currently contracting

SNPS is expanding its AI-focused Design IP business as demand for high-speed connectivity grows, with rising design wins and automotive adoption supporting growth.

Electronic design automation (EDA) company Synopsys NASDAQ: SNPS is coming off one of its strongest stretches of 2026, with shares up 30% over the past month.

Synopsys (SNPS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

Synopsys, Inc. SNPS shares have jumped 34.5% in the past month, outperforming the Zacks Computer - Software industry and the Zacks Computer and Technology sector's appreciation of 7.5% and 5.2%, respectively.

Semiconductor equipment stocks are giving back ground after a strong year powered by artificial intelligence (AI) spending. Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) stock is at $461.

Synopsys leads in Electronic Design Automation software, vital for AI chip production, with major contracts from Amazon and OpenAI accelerating its profile. SNPS posted 42% Y/Y revenue growth in Q3, with EDA software comprising 51.8% of total revenues and operating income surging 116% Y/Y. Valuation stands at a 8.8x forward price-to-revenue ratio, a 7% discount to its 3-year average, justified by robust deal flow and AI-driven demand.

After several years where the stock languished, Synopsys now has multiple bullish catalysts.

Before a single AI chip reaches a fab, it passes through Synopsys software, and that chokepoint keeps getting harder to route around.

Investors interested in Computer - Software stocks are likely familiar with Progress Software (PRGS) and Synopsys (SNPS). But which of these two stocks offers value investors a better bang for their buck right now?

Synopsys has beaten earnings estimates three times this year, yet shareholders have walked away from each report with less than they started.
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