In December 2025, Synopsys reported fourth-quarter revenue of US$2,254.86 million and basic EPS from continuing operations of US$2.42, alongside issuing fiscal 2026 guidance that points to higher full-year revenue and GAAP EPS.
At the same time, NVIDIA deepened its collaboration with Synopsys by investing US$2.00 billion for a minority stake and committing to jointly develop AI- and GPU-accelerated engineering tools spanning chip design through complex system simulation.
Next, we’ll examine how NVIDIA’s US$2.00 billion investment and expanded AI collaboration could reshape Synopsys’ existing investment narrative.
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To own Synopsys, you need to believe in its role as a core enabler of AI era chip and system design, now expanded from silicon into full engineering workflows after the Ansys acquisition. The immediate upside focus is on delivering against FY 2026 guidance and realizing early Ansys synergies, while the biggest near term risk is execution and profitability pressure as Synopsys digests a large deal and restructures its portfolio. The NVIDIA investment does not remove that risk, but it reinforces the AI centric growth angle.
The most relevant recent announcement is NVIDIA’s US$2.00 billion purchase of Synopsys shares and the expanded AI and accelerated computing partnership across chip design, simulation and digital twins. This deepens the product roadmap around AI driven EDA and engineering tools, which sits at the heart of the company’s growth catalyst: integrating Ansys and Synopsys into a unified, higher value platform that can support increasingly complex AI, automotive and industrial designs over time.
Yet despite the AI tailwind and NVIDIA tie up, investors should be aware that the Ansys integration brings higher debt, restructuring and execution risk that could…
Read the full narrative on Synopsys (it’s free!)
Synopsys’ narrative projects $12.1 billion revenue and $2.7 billion earnings by 2028. This requires 24.7% yearly revenue growth and about a $1.3 billion earnings increase from $1.4 billion today.
Uncover how Synopsys’ forecasts yield a $551.04 fair value, a 22% upside to its current price.
SNPS 1-Year Stock Price Chart
Five fair value estimates from the Simply Wall St Community span roughly US$451 to US$556 per share, showing how far opinions can stretch. Set against that, Synopsys’ ability to integrate Ansys while managing higher costs and restructuring will likely be central to how the story develops, so it is worth weighing several viewpoints before deciding what the company is really worth.
Explore 5 other fair value estimates on Synopsys – why the stock might be worth just $451.48!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SNPS.
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