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Why Synopsys stock is gaining today

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Synopsys Inc. is experiencing a positive surge in its stock price following a significant upgrade from Morgan Stanley.

Synopsys Inc. (SNPS.US) is rising today, gaining 1.08% to close at CA$397.46. The stock's upward momentum comes after Morgan Stanley upgraded its rating to Overweight, highlighting the company's strong positioning in the semiconductor industry amid growing demand for AI technologies.

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Synopsys Inc

SNPS.US

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SNPS.US

Synopsys Inc

Source:WealthAwesomeWealthAwesome
$76.77 (-16.63%)
65 day period
$367.70$416.29$464.89Jun 17Aug 4Sep 18

Market cap

$72.53B

P/E

64.1x

52W high

$539.48

52W low

$362.55

1W change

-3.75%

Beta

1.23

Analyst Price Targets

Based on 25 analysts covering SNPS · as of Sep 17, 2026

📈

Wall Street analysts forecast SNPS stock price to rise 44.2% over the next 12 months.

Consensus

Buy

4.24 / 5.00

Avg. Target

C$545.93

+44.2% Upside

Current Price

C$378.47

Last close

Analyst Breakdown (25 analysts)

Strong Buy 15
Buy 2
Hold 7
Sell 1
Compare analyst targets →

Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.

Wealth Awesome Price Forecast

WA Model

Statistical 90-day price range based on SNPS's historical volatility

HistoricalForecast68%95%
C$165.76C$257.61C$349.45C$441.30C$533.15C$624.99TodayJun 17Aug 4Sep 18Oct 31Dec 14Jan 26

30-Day Vol

53.0%

Annualized

90-Day Vol

45.4%

Annualized

Trend (90d)

-50.0%

Annualized drift

90d Mean

C$322.01

Expected price

HorizonExpected68% Range (1σ)
30 trading daysC$362.72C$302.09C$435.52
60 trading daysC$341.76C$263.87C$442.65
90 trading daysC$322.01C$234.58C$442.03

Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.

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Investor takeaway: Investors may view Synopsys as a strong long-term play, especially with its recent upgrade and solid financial performance, despite some restructuring challenges.

1.08% Gain Today

Synopsys' stock has shown resilience with a 1.08% increase, reflecting strong investor sentiment following recent analyst upgrades.

Bull case

The upgrade from Morgan Stanley shows confidence in Synopsys' ability to meet the rising demand for semiconductor design tools, especially in the AI sector. The company has reported robust financial performance, with significant revenue growth and strong free cash flow.

Bear case

Despite the positive outlook, Synopsys is undergoing restructuring, including layoffs, which could affect employee morale and operational efficiency in the short term. Additionally, the semiconductor industry faces cyclical challenges that may impact future performance.

Analyst Upgrade Sparks Positive Sentiment

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Morgan Stanley's recent upgrade of Synopsys to Overweight has sparked positive sentiment among investors. Analyst Lee Simpson noted the strong demand for the company's semiconductor design solutions, particularly in the growing AI landscape. This upgrade is part of a broader strategy to focus on quality companies within the semiconductor sector, expected to benefit from a recovery in demand.

Strong Financial Performance Underpins Growth

Synopsys has demonstrated impressive financial results, reporting a 42.4% year-over-year revenue increase in its latest quarter. This growth is driven by strong demand for its electronic design automation tools and the successful integration of its Ansys acquisition. The company has also raised its full-year revenue outlook, showing confidence in continued demand for its products.

Restructuring Efforts Amid Growth

While Synopsys is experiencing growth, it is also undergoing restructuring, including layoffs at its Sunnyvale campus. These changes are part of a broader effort to streamline operations after the acquisition. Despite these challenges, analysts remain optimistic about the company's long-term prospects, citing the increasing complexity of semiconductor design as a significant opportunity.


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Wealth Awesome
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Wealth Awesome

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✅ Reviewed by Certified Financial Professionals

This content has been reviewed by CFA® charterholders and Certified Financial Planners (CFP®) with over a decade of experience in Canadian financial markets. All information is fact-checked against official Canadian sources and regulations.

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⚠️ Professional Disclaimer

This content is for educational purposes only and should not be considered personalized financial advice. While our team brings professional expertise, individual circumstances vary. For personalized guidance, consult with a qualified financial advisor, tax professional, or mortgage specialist.

Published: September 10, 2026
Last Updated: September 21, 2026
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