On September 30, Synopsys rose 3.35% in pre-market trading, trading at $428.5 per share, with turnover of approximately $4.39 million. The rebound follows a 1.91% decline in the prior session, during which concerns over AI large models autonomously completing chip designs weighed on EDA sector sentiment.

On the news front, multiple institutions have recently upgraded Synopsys in quick succession. HSBC raised the stock to Buy from Hold with a target price of $700, citing AI-driven growth potential in design IP licensing and agentic AI integration into EDA tools. BNP Paribas upgraded to Neutral from Underperform with a $420 target, while Morgan Stanley moved to Overweight with a $500 target. Baird also upgraded to Outperform with a $560 target. The analyst consensus mean target stands at approximately $554.

Fundamentally, Synopsys reported fiscal Q3 revenue of $2.48 billion, up 42% year-over-year, beating the $2.44 billion estimate. Non-GAAP EPS of $3.91 exceeded the $3.67 consensus by 6.5%. The company raised full-year revenue guidance to $9.69-$9.74 billion and EPS guidance to $15.04-$15.10, both above prior forecasts, with management projecting double-digit organic EDA growth acceleration into Q4.

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