Synopsys, Inc. research snapshot
SNPS AI stock analysis currently reads Synopsys, Inc. as a high-quality electronic design automation, semiconductor IP, and engineering simulation franchise that sold off hard in July 2026. At the August 2, 2026 data cutoff, SNPS closed at $388.76 on July 31 with a market capitalization near $74.44 billion, about 40% below its 52-week high. The company raised its FY2026 guidance in May and pushed ahead with agentic AI workflows with Intel Foundry, AMD, Microsoft, and NVIDIA at DAC 2026, but the stock fell after a reported Kimi K3 autonomous chip design demonstration and a broader semiconductor pullback. This page is informational research and not investment advice.
Current price
$388.76
Market cap
$74.44 billion
AI score
66 / 100
Rating
High-quality EDA and simulation leader with a contested AI-disruption overhang
Trend status
Near the 52-week low at $366, below the 50-day average near $446 and the 200-day average near $449, with RSI near 40 after a sharp July drawdown
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Synopsys sells mission-critical design automation, verification, semiconductor IP, and engineering simulation tools used before expensive chip and product decisions are made. | High |
| Moat | Moat comes from deep workflow integration, verification trust, high switching costs, IP reuse, tool qualification, customer design history, and scale across EDA plus Ansys simulation, though agentic AI raises a new question about how much of this workflow remains human-driven. | Medium-high |
| Management | Sassine Ghazi and team raised FY2026 targets in May, bet on agentic AI with Intel Foundry, AMD, Microsoft, and NVIDIA, and are pruning legacy software, but the next test is the August 26 earnings report and the September 30 Investor Day. | Medium-high |
| Financial trend | Q2 FY2026 revenue rose 41.9% year over year to $2.276 billion, and FY2026 revenue guidance was raised to $9.625 billion to $9.705 billion with non-GAAP EPS guidance of $14.72 to $14.80. | High |
| Valuation | At $388.76, SNPS traded near 92x TTM EPS, about 24.5x forward earnings, 8.6x sales, and 28.3x free cash flow per share, a lower multiple than in early July but still above a mature software level. | High |
| Technical trend | SNPS was below its 50-day average near $446.09 and below its 200-day average near $449.47, with RSI near 40.15 and the stock near the $366.00 52-week low after a sharp drawdown. | High |
| Risk level | Main risks are the agentic AI disruption narrative, Ansys integration, about $10.8 billion of debt, export controls, China regulatory constraints, customer semiconductor cycles, and competition from Cadence, Siemens, and AI-native tools. | Medium-high |
| AI confidence | High for historical facts and tool-checked math. Medium for forward scenarios because stock outcomes depend on execution, the AI-disruption debate, and market multiples. | High data confidence |
| Investment certainty | Medium certainty. SNPS is a quality franchise trading near its 52-week low, but the page gives a research framework, not a buy or sell instruction. | Medium |
SNPS AI stock forecast
The SNPS AI stock forecast uses scenario math around the $388.76 close. A three-year framework using the FY2026 non-GAAP EPS guidance midpoint of $14.76 produced a bullish value near $628, a base value near $446, and a bearish value near $228 before any future share count change. These are scenario ranges, not price promises.
$600 to $660
More likely if Synopsys sustains double-digit growth, agentic AI workflows expand rather than replace EDA demand, Ansys cross-sell works, non-GAAP margin expands, debt is reduced, export restrictions do not tighten, and the market reassigns a premium software multiple.
$425 to $475
More likely if revenue grows in the high single digits to low teens, agentic AI becomes an incremental tool rather than a demand destroyer, Ansys integration is steady, and the valuation settles near a low-to-mid twenties earnings multiple.
$210 to $240
More likely if autonomous AI chip design materially reduces traditional EDA seats or pricing, Cadence, Siemens, or AI-native tools take share, integration costs or export controls reduce revenue, and the multiple compresses toward a mature software level.
SNPS AI technical analysis
SNPS AI technical analysis is cautious as of the August 2, 2026 data cutoff. StockAnalysis showed SNPS at $388.76 at the July 31 close, a 50-day moving average near $446.09, a 200-day moving average near $449.47, RSI near 40.15, and a 52-week range from $366.00 to $646.29.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $388.76 | July 31, 2026 closing price used for this static page. |
| Near support | $366 to $380 | The 52-week low sits at $366.00 and the stock has been testing this zone since mid-July, so a hold or a break here matters for short-term momentum. |
| Secondary support | $350 | This round-number area is a deeper risk-control reference if the 52-week low fails. |
| First resistance | $446 to $449 | The 50-day average near $446.09 and the 200-day average near $449.47 have converged and form the first recovery zone. |
| 52-week high reference | $646.29 | The stock sits about 40% below its 52-week high after the July selloff. |
| Momentum | RSI 40.15 | Momentum is weak, but not yet at a deeply oversold reading that would by itself confirm capitulation. |
| Volume | About 2.25 million shares | StockAnalysis reported July 31 volume near 2.25 million shares, above the 20-day average near 1.97 million. |
| Volatility | Beta 1.22 | SNPS has moved more than the broad market, so position size should account for earnings, regulatory, and AI-disruption headlines. |
| Invalidation | Close below $366, then $350 | A close below the 52-week low weakens the mean-reversion setup. A break below $350 would signal a deeper trend reset. |
SNPS AI trading strategy
The SNPS AI trading strategy is a rules-based framework for a premium EDA and simulation stock trading near its 52-week low under an AI-disruption and integration cycle. It is not personalized advice and should be paired with live chart data, position sizing, the August 26 earnings release, filings, and a defined invalidation level.
Wait for SNPS to reclaim the 200-day moving average near $449.47 and then the 50-day moving average near $446.09 with improving volume before treating the recovery as a stronger trend setup.
A failed reclaim or a close back below the $366.00 52-week low should invalidate the near-term trend setup.
If SNPS stabilizes near $366 to $380, compare the price move with FY2026 guidance, the September 30 Investor Day, agentic AI announcements, Ansys integration, debt reduction, and semiconductor design activity.
Do not average down without a maximum loss rule because premium software stocks can keep resetting when AI-disruption or growth worries persist.
Track Design Automation growth, Design IP growth, Ansys revenue contribution, non-GAAP operating margin, free cash flow, debt, the exit from manufacturing process control software, the Processor IP Solutions divestiture, and management commentary on agentic AI.
Reduce confidence if revenue growth depends mostly on acquisition contribution or if agentic AI adoption starts to compress seat counts and pricing.
Investment research summary
Synopsys helps engineering teams design, verify, simulate, and secure chips and complex products before costly fabrication or production choices are made.
The moat is built from switching costs, design-flow trust, reusable IP blocks, verification accuracy, partner ecosystems, long customer qualification cycles, and Ansys simulation breadth.
The thesis fails if agentic or autonomous AI chip design compresses the need for traditional EDA tools, Ansys integration distracts the company, export rules cut important demand, Cadence, Siemens, or AI-native tools gain share, or leverage limits flexibility during a downturn.
Management has raised FY2026 targets and is betting on agentic AI workflows with Intel Foundry, AMD, Microsoft, and NVIDIA while pruning legacy software, so investors need evidence that growth and margins hold through the September 30 Investor Day and beyond.
Synopsys sits inside long-duration trends in AI accelerators, custom silicon, 3D-IC design, semiconductor IP, automotive electronics, aerospace simulation, and digital engineering, while the industry debates whether AI expands or replaces human design work.
At $388.76, the stock carries a lower multiple than in early July but still assumes durable growth. Margin of safety improves if earnings compound while the balance sheet deleverages, and weakens if AI-disruption worries or multiple compression offset growth.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| SNPS price | $388.76 at the July 31, 2026 close | StockAnalysis quote page | August 2, 2026 |
| Market capitalization | $74.44 billion, verified as $388.76 x 191.48 million shares | StockAnalysis and financial_rigor.py market cap verification | August 2, 2026 |
| Q2 FY2026 revenue | $2.276 billion, compared with $1.604 billion in Q2 FY2025 | Synopsys Q2 FY2026 financial results | August 2, 2026 |
| FY2026 revenue guidance | $9.625 billion to $9.705 billion | Synopsys Q2 FY2026 financial results | August 2, 2026 |
| FY2026 non-GAAP EPS guidance | $14.72 to $14.80, midpoint $14.76 | Synopsys Q2 FY2026 financial results | August 2, 2026 |
| FY2025 revenue | $7.054 billion | Synopsys FY2025 results | August 2, 2026 |
| TTM revenue and EPS | $8.68 billion revenue and $4.22 EPS | StockAnalysis statistics page | August 2, 2026 |
| Valuation metrics | 92.1x TTM PE, 24.5x forward PE, 8.6x PS, 28.3x P/FCF | StockAnalysis and financial_rigor.py valuation verification | August 2, 2026 |
| Technical reference data | 50-day average $446.09, 200-day average $449.47, RSI 40.15, beta 1.22, 52-week range $366.00 to $646.29 | StockAnalysis statistics page | August 2, 2026 |
| Cash and debt | $2.48 billion in cash and $10.84 billion in total debt on the April 30, 2026 balance sheet | StockAnalysis statistics page | August 2, 2026 |
| Analyst consensus | Buy rating and $564.43 average price target across 24 to 25 analysts | StockAnalysis forecast page | July 22, 2026 |
| Upcoming catalysts | Q3 FY2026 results on August 26, 2026 and Investor Day on September 30, 2026 | Synopsys earnings release date announcement | July 22, 2026 |
| Agentic AI partnerships | Expanded DAC 2026 collaborations with Intel Foundry on 14A and agentic AI workflows with AMD, Microsoft, and NVIDIA | Synopsys DAC 2026 press releases | August 2, 2026 |
| Ansys acquisition | Closed July 17, 2025, expanding Synopsys toward a $31 billion TAM | Synopsys Ansys acquisition completion release | August 2, 2026 |
| Management ownership | CEO Sassine Ghazi owned 572,518 shares, about 0.30% of the 2026 proxy share base; current executive officers as a group owned about 2.04% | Synopsys 2026 proxy statement, filed February 2026, and financial_rigor.py calculator | August 2, 2026 |
This SNPS AI stock analysis page is an informational research tool, not investment advice, financial advice, or a recommendation to buy or sell any security. Forecast scenarios are based on available public data as of August 2, 2026 and may be wrong. Always verify live prices, filings, risks, and your own constraints before making investment decisions.
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