Synopsys, Inc. (SNPS) - Stock Analysis
Last updated: Jan 14, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Strong technical upward momentum (+12% over 21 days), transformative acquisition of ANSYS driving double-digit growth, and AI innovation underpin a bullish near-term outlook, tempered by ongoing securities class action lawsuits and geopolitical risks.
Loading chart data...
AI Analyst Overview
Loading chart data...
Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠High gross-margin ⢠Strong FCF ⢠Rich multiples Synopsys delivers durable high gross margins and strong free cash flow from recurring subscription revenue but faces rich valuation and balance-sheet sensitivity due to heavy intangible assets and sizable R&D/SG&A spending.
Price Behavior
Key Price Behavior Insights: ⢠Higher highs/lows ⢠Firm support ⢠Short-term pullback Support Level: $450 Resistance Level: $530â$535 Over the last month SNPS shows a constructive recovery from mid-December lows near $453 with higher highs/lows up toward ~$533 but faces resistance around $530â$535 after a pullback to $511.80.
Sentiment & News
Key News Insights: ⢠Multiple class actions ⢠Earnings revisions ⢠Strong institutional ownership Synopsys faces multiple securities class actions after lateâ2025 IP underperformance and stock drops, even as upgraded earnings forecasts and earlyâ2026 gains, plus 85.5% institutional ownership, sustain investor interest.
AI Summary
Synopsys is now a highâfreeâcashâflow but executionâsensitive trade: strong recurring revenue and FCF support debt paydown and buybacks, yet the investment thesis hinges on flawless ANSYS integration and realization of multibillionâdollar synergies amid litigation and China weaknessâso investors should only add on confirmed synergy/cashâflow delivery or sell into unconfirmed execution risk.
Description
Synopsys develops software and intellectual property used to design, verify, and prototype integrated circuits and systems-on-chip, including digital implementation tools, verification and virtual prototyping platforms, and FPGA-based prototyping hardware. Its IP library covers interface protocols, analog and datapath components, configurable processors and SoC infrastructure, and the company also provides security testing, managed and professional services, and manufacturing support. Founded in 1986, Synopsys is headquartered in Mountain View, California and serves customers across electronics, automotive, financial services, medical, energy, and industrial markets.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Jan 13 | Jan 20 | SNPS | Synopsys, Inc. | Strong technical upward momentum (+12% over 21 days), transformative acquisition of ANSYS driving double-digit growth, and AI innovation underpin a bullish near-term outlook, tempered by ongoing securities class action lawsuits and geopolitical risks. | Active | +0.9% |
| Dec 25 | Jan 1 | SNPS | Synopsys, Inc. | Synopsys is a hot idea supported by Nvidia's $2B strategic investment fueling AI growth optimism, 11% stock surge in 3 weeks, acquisition synergies (ANSYS), strong backlog (> $11B), and positive AI infrastructure sector dynamics, despite legal and geopolitical risks. | Closed | -1.3% |