SNPS
Synopsys, Inc.

Synopsys, Inc.SNPS

Technology · Software - Infrastructure
494.51USD
-1.59%
Oct 14, 2026
SNPS overview ready
Synopsys is a direct picks-and-shovels supplier of chip-design automation, verification, semiconductor IP and, following its acquisition of Ansys, system-level multiphysics simulation.
Strong narrative exposure
Exposed to the AI Compute Infrastructure Buildout narrative through AI Semiconductor Design Automation and Design IP — bottleneck supplier.
Advancing price action
Longer-term context reads early trend, with a near-term setup of daily reclaim.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Unremarkable fundamentals
Primary risk
Semiconductor industry cyclicality impacting demand.
Market Oct 13Filing Jul 31Price action Oct 13Research Sep 29

Conviction Level

NarrativeHeat9.2ThemeHeat8.6PriceAction8.9Valuation3.0CompanyPosition9.3BusinessQuality7.0
Price
Loading price history…

Price Action

Advancing price action
Longer-term context reads early trend, with a near-term setup of daily reclaim.
EntryBreakout + retest

Price broke through the weekly SMA200, then retested it constructively and recovered — a fresh structural entry rather than a chase.

Key Financials

Market Cap
$94.8B
Avg Volume (60D)
2.2M
60 sessions
Revenue Growth YoY
+15.1%
FY2025 vs FY2024
Gross Margin
+72.4%
Trailing twelve months
Operating Margin
+8.5%
Trailing twelve months
Free Cash Flow Yield
+2.9%
Distance from 200DMA
+10.9%
P/E
88.0x
EV / EBITDA
38.7x
EV / Sales
10.7x
Market metrics as of Oct 13, 2026
Financial results for the period ended Jul 31, 2026
Filed balance-sheet data as of Jul 31, 2026

Fundamentals & Valuation

Two of the three valuation perspectives say expensive; own history is the dissenting view.
Synopsys, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command. It trades at a 2.9% free-cash-flow yield and 38.7x EBITDA, which require sustained delivery to be justified.

Company Research

Thesis
Synopsys is a direct picks-and-shovels supplier of chip-design automation, verification, semiconductor IP and, following its acquisition of Ansys, system-level multiphysics simulation.
Opportunity
Moderate opportunity
AI-accelerator, custom-silicon, advanced-node and multi-die design programs are increasing demand for electronic design automation, verification, simulation and reusable semiconductor IP needed to bring complex compute hardware to production.
Key risk
Semiconductor industry cyclicality impacting demand.

Narrative & Theme

AI Compute Infrastructure Buildout
Part of AI Semiconductor Design Automation and Design IP, with strong fit.
SNPS is a genuine upstream beneficiary of AI-compute investment rather than a generic technology adjacency: expanding AI accelerator and custom-silicon programs raise design complexity, verification workloads, advanced-node requirements and demand for interoperable IP.
Narrative HeatHot9.2 / 10
Theme HeatHot8.6 / 10
This is the company’s own research reading. The canonical heat measurement for this story has not run.

Business & Markets

Technology · Software - Infrastructure
What they do

Synopsys, Inc. provides software solutions and design IP for the semiconductor and electronics industries, operating through Design Automation and Design IP segments to support chip design and verification processes.

How it earns

The company primarily generates revenue through licensing and subscription-based sales of its software and IP products.

Products & services
Digital and Custom IC Design solutions
Verification solutions
FPGA design products
Technology computer-aided design (TCAD) tools
Customers & end markets
Semiconductor companies
Electronics manufacturers
Market position

Synopsys is a market leader in electronic design automation (EDA) and semiconductor IP solutions.

Demand drivers
Medium cyclicality

Demand is linked to semiconductor industry cycles and capital expenditure trends in chip design.