Synopsys shares are trading higher after the company announced agentic AI chip design plans with AMD and Microsoft. Also, the company expanded its collaboration with Intel Foundry to use AI to improve design processes.

Mizuho Maintains Outperform on Synopsys, Lowers Price Target to $550

Mizuho analyst Siti Panigrahi maintains Synopsys (NASDAQ:SNPS) with a Outperform and lowers the price target from $600 to $550.

Baird Upgrades Synopsys to Outperform, Raises Price Target to $560

Baird analyst Joe Vruwink upgrades Synopsys (NASDAQ:SNPS) from Neutral to Outperform and raises the price target from $558 to $560.

Why Synopsys Stock Popped Today

Synopsys stock surged over 11% after beating analyst expectations for fiscal Q3 earnings and sales. The company reported $3.91 EPS on $2.5B in sales versus forecasts of $3.67 EPS on $2.4B. Strong growth was driven by increased demand for AI chip design software, with sales up 42.5% year-over-year. The company also generated $2.1B in free cash flow year-to-date, more than 3x its reported GAAP profits, and provided optimistic full-year guidance.

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