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Why Synopsys stock is gaining today

By Wealth Awesome -

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Stocks & ETFs:SNPS.US

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Synopsys Inc. sees a significant boost in stock price following a major agreement with Amazon Web Services.

Synopsys Inc. (NASDAQ:SNPS) is rising today, up 1.84% to close at CA$422.73, driven by the announcement of a strategic multi-year agreement with Amazon Web Services (AWS) valued at over $1 billion.

Investor takeaway: This partnership not only enhances Synopsys' revenue potential but also positions it as a key player in the evolving landscape of custom silicon design and AI-powered engineering.

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Synopsys Inc

SNPS.US

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SNPS.US

Synopsys Inc

Source:WealthAwesomeWealthAwesome
↓ $46.65 (-10.10%)
72 day period
$367.70$416.29$464.89Jun 17Aug 10Sep 29

Market cap

$79.55B

P/E

73.0x

52W high

$539.48

52W low

$362.55

1W change

+1.43%

Beta

1.23

Analyst Price Targets

Based on 25 analysts covering SNPS · as of Sep 28, 2026

📈

Wall Street analysts forecast SNPS stock price to rise 33.4% over the next 12 months.

Consensus

Buy

4.24 / 5.00

Avg. Target

C$553.77

+33.4% Upside

Previously C$545.55 on Sep 25, 2026

Current Price

C$415.09

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$190.74C$301.82C$412.90C$523.98C$635.06C$746.15TodayJun 17Aug 10Sep 29Nov 11Dec 25Feb 6

30-Day Vol

54.6%

Annualized

90-Day Vol

44.7%

Annualized

Trend (90d)

-26.6%

Annualized drift

90d Mean

C$377.42

Expected price

HorizonExpected68% Range (1σ)
30 trading daysC$402.13C$333.14 – C$485.41
60 trading daysC$389.58C$298.54 – C$508.39
90 trading daysC$377.42C$272.42 – C$522.88

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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Synopsys stock rises 1.84% following AWS deal

The $1 billion agreement with AWS marks a pivotal moment for Synopsys, potentially increasing its market share in custom silicon solutions.

Bull case

The multi-year agreement with AWS is expected to significantly boost Synopsys' revenue from its silicon IP business. This shift allows for a license-plus-royalty model that connects earnings to production volumes, providing a more predictable revenue stream.

Bear case

Despite the positive news, investors should stay cautious. The stock is trading at a high P/E ratio of 72.95, which may signal overvaluation if growth does not meet expectations.

Strategic Partnership with AWS

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Synopsys has signed a groundbreaking multi-year agreement with Amazon Web Services, establishing AWS as the lead customer for its silicon intellectual property. This deal is expected to enhance Synopsys' offerings in custom silicon designs, particularly for cloud workloads, and will support AWS's ongoing efforts to develop in-house processors.

Market Implications

The partnership with AWS not only boosts Synopsys' revenue prospects but also positions the company strategically within the semiconductor industry. As demand for custom silicon solutions grows, Synopsys is set to benefit from its expanded capabilities in application-optimized IP designs.

Financial Outlook

With a market cap of approximately $79.55 billion and a profit margin of 11.43%, Synopsys is in a strong financial position. However, investors should be aware of the high P/E ratio, which suggests that the stock may be overvalued if growth does not materialize as anticipated.

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Wealth Awesome
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Wealth Awesome

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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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📊 Data AccuracyVerified sources
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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 30, 2026
Last Updated: September 30, 2026

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