TLDR
- Synopsys stock jumped 11% to $483.59, making it the top performer in the Nasdaq 100 on Thursday.
- The company launched GPT-Synopsys, a specialized chip design AI model, in a multiyear revenue-sharing partnership with OpenAI.
- Synopsys signed a deal worth more than $1 billion with Amazon for custom chip work.
- The company raised its long-term revenue growth target to midteens through fiscal 2030.
- Rosenblatt raised its price target to $620, implying 43% upside from pre-rally levels.
Synopsys stock climbed 11% to $483.59 early Thursday. That made it the best performer in the Nasdaq 100 for the day.
The jump followed a 4.8% gain the day before. Together, the two days put Synopsys on track for its best stretch since September 2025.
The rally came after the company’s Investor Day in New York on Wednesday. Synopsys used the event to announce two major AI partnerships.
The first is with OpenAI. The two companies are launching GPT-Synopsys, a specialized model built for chip design work.
Neither company shared financial details of the deal. They did confirm it runs on a multiyear revenue-sharing basis.
Synopsys said it’s already talking with major semiconductor customers about using the new tool.
The Amazon Deal
The second announcement involves Amazon. Synopsys agreed to a deal worth more than $1 billion to work with Amazon on custom chips.
This expands Amazon’s existing use of Synopsys software and intellectual property. It also marks a shift in how Synopsys gets paid.
The deal uses a license-plus-royalty model. That means payments should climb as production increases, rather than staying fixed.
Both partnerships target a concern that’s followed Synopsys for a while. Investors worried AI would let chipmakers handle more design work in-house, cutting into Synopsys business.
CFO Shelagh Glaser pushed back on that idea in an interview with Barron’s. “Everybody’s building their own chips, and we have insatiable demand,” she said.
New Growth Targets
Synopsys also raised its long-term outlook. The company now targets midteens compound annual revenue growth through fiscal 2030, up from its previous double-digit goal.
For fiscal 2027 specifically, Synopsys expects revenue growth of around 15%. It also expects adjusted operating margin to reach around 50% by fiscal 2030, up from 44% in fiscal 2027.
The company plans to buy back roughly $1 billion in stock in the coming months. That’s subject to market conditions.
StoneX analyst Gary Mobley kept his Buy rating and $570 price target. He wrote that AI agents are meant to support engineers, not replace core design tools.
Rosenblatt raised its own price target to $620 from $575 after the event. That implies 43% upside from the stock’s prior price of $434.94.
Rosenblatt pointed to Synopsys’ recent performance too. Revenue grew 46% over the last twelve months, with an 83% gross margin.
Synopsys stock was still down 7.4% year-to-date heading into Thursday. Rival Cadence Design Systems has gained 5.6% over the same stretch and was up 6.1% Thursday too.
Glaser attributed the stock’s earlier weakness to AI disruption fears and the integration of Ansys, which Synopsys bought last year for $35 billion.
“We had said 2026 was going to be a transitional year,” Glaser said, pointing to the Amazon deal as proof of that plan playing out.
Other analysts have also turned more positive recently. HSBC upgraded the stock to Buy with a street-high $700 target, while Morgan Stanley and Baird both upgraded their ratings this year.
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