On September 30, Synopsys rose 3.17% in regular trading, trading at $428.13 per share, with turnover of $126 million. The stock rebounded after falling approximately 1.91% in the prior session amid lingering concerns over AI large models potentially disrupting the EDA industry.

On the news front, Synopsys announced a multi-year IP licensing agreement with Amazon valued at over $1 billion, aimed at deepening collaboration in custom chip design. The deal provides a significant revenue visibility boost and underscores growing demand for Synopsys design IP in hyperscaler custom silicon programs.

The move was further supported by a wave of institutional upgrades. HSBC raised its rating to Buy with a $700 price target, citing AI-driven growth potential through design IP licensing and agentic AI integration into EDA tools. Morgan Stanley upgraded to Overweight with a $500 target, BNP Paribas upgraded to Neutral at $420, and Baird upgraded to Outperform at $560. Synopsys reported fiscal Q3 revenue of $2.48 billion, up 42% year-over-year, beating the consensus estimate of $2.44 billion, while raising full-year revenue guidance to $9.69 billion to $9.74 billion.

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