Synopsys, Inc. (SNPS) Stock Price & How to Invest
Last updated July 2026
Short answer
You can invest in Synopsys (SNPS) by buying shares or fractional shares at any major US broker, through a semiconductor or software ETF that holds it, or as one holding in a thematic basket. Synopsys is a leader in electronic design automation (EDA), the software chip companies use to design and verify semiconductors, and after its roughly $35 billion acquisition of Ansys it now adds physics-based simulation for whole systems. The thesis is that most advanced chips and AI accelerators run through Synopsys tools, giving it a recurring, mission-critical spot in the chip supply chain. The single biggest thing to understand is that this is a high-multiple, execution-heavy story: returns depend on integrating Ansys, holding share against Cadence, and navigating China export controls that already pressured guidance.
SNPS stock price
As of 2026-07-14, Synopsys, Inc. (SNPS) last closed at $432.11, down 21.4% over the past year. Over the past 52 weeks it has traded between $380.47 and $645.35.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Synopsys, Inc.'s investor relations page. Walnut is informational, not investment advice.
What does Synopsys, Inc. (SNPS) do?
Synopsys, Inc. is a leader in electronic design automation, the specialized software, intellectual property (IP), and services that semiconductor and systems companies use to design, verify, and manufacture chips. Along with Cadence and Siemens EDA, it sits inside a tight oligopoly; Synopsys and Cadence together are often cited at roughly 85 percent of the EDA market. Its tools are embedded deep in the design flow for advanced logic, memory, and AI accelerators, which makes revenue largely recurring and switching costs high. In July 2025 Synopsys closed its roughly $35 billion acquisition of Ansys, adding physics-based simulation and analysis and expanding the company from chip-level design toward full system design, a combined market management sizes near $31 billion.
In fiscal 2026 the Ansys integration became the defining driver of results. Second-quarter FY2026 revenue was about $2.28 billion with a non-GAAP operating margin near 39.5 percent and non-GAAP EPS around $3.35, all ahead of guidance, and the company raised full-year revenue guidance to roughly $9.63 to $9.71 billion. Management is pushing an AI-centric roadmap, including Multiphysics Fusion that blends Ansys simulation engines into EDA and agentic AI design workflows it says can lift productivity meaningfully. At the same time, US export controls on China have forced licensing on sales to Chinese customers and weighed on that region, a headwind Synopsys has flagged directly in its guidance and outlook.
What's driving Synopsys, Inc. (SNPS)?
1. EDA duopoly and AI chip demand
Synopsys and Cadence dominate electronic design automation, and the explosion of AI accelerators, custom silicon, and advanced-node designs increases the value and complexity of the tools chipmakers need. Because EDA software and IP are mission-critical and deeply embedded in design flows, revenue is largely recurring with high switching costs. As long as leading-edge chip design keeps growing, Synopsys sits in a structurally advantaged position at the center of it.
2. Ansys integration and system-level expansion
The roughly $35 billion Ansys acquisition, closed in July 2025, extends Synopsys from chip design into physics-based simulation for entire systems, widening its addressable market toward a combined figure management sizes near $31 billion. Early cross-selling, more than 30 cited full-flow technical wins, and Multiphysics Fusion capabilities are the proof points. The company also targets realizing about half of committed cost synergies by the end of fiscal 2026.
3. AI-driven design tools
Synopsys is building agentic AI workflows and multiphysics capabilities it says can deliver large productivity gains, with early trials cited at up to threefold faster design closure for some analog workloads. If AI features become table stakes for advanced design and Synopsys leads there, it can defend pricing and share while giving customers a reason to consolidate onto its platform rather than splitting spend across vendors.
4. Recurring model and margin expansion
Much of Synopsys revenue is time-based and recurring, which smooths results across semiconductor cycles relative to hardware makers. Raised FY2026 guidance pointed toward a non-GAAP operating margin near 41 percent, and management frames Ansys synergies plus scale as a path to further margin gains over time. Consistent execution on synergies and margins is central to justifying the stock's premium valuation.
What are the risks to Synopsys, Inc. (SNPS)?
The clearest near-term risk is China: US export controls have required licenses for sales to Chinese entities, disrupted orders, and weighed on guidance, and further tightening is outside the company's control. Integrating a roughly $35 billion Ansys acquisition is a major undertaking, with execution, cost-synergy, and culture risk while Synopsys simultaneously defends core EDA share against a resurgent Cadence, which is expanding through its own Hexagon design-business deal. The stock also carries a premium, high-multiple valuation, so any growth disappointment, margin slip, or slower semiconductor spending can compress the multiple sharply, as a large 2026 drawdown showed. Design IP margins and broader chip-cycle softness add further variability to results.
How is Synopsys, Inc. (SNPS) valued? (approximate, Jul 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Synopsys, Inc.'s investor relations page or your broker.
- Q2 FY2026 revenue: ~$2.28 billion, ahead of company guidance
- Q2 FY2026 non-GAAP EPS: ~$3.35, above the guided range
- Non-GAAP operating margin: ~39.5% in Q2, with full-year guidance raised toward ~41%
- FY2026 revenue guidance: ~$9.63 to $9.71 billion (midpoint ~$9.665 billion), raised after Q2
- FY2026 non-GAAP EPS guidance: ~$14.76 at midpoint, increased after Q2
- Valuation posture: Trades at a premium, high-multiple valuation typical of leading design-software names
Figures are approximate, reflect non-GAAP measures the company emphasizes, and are tied to the asOf date; verify live numbers before acting. Note that Ansys is now consolidated, so year-over-year comparisons are inflated by the acquisition rather than reflecting pure organic growth, and some guidance items include accounting shifts (such as recognizing certain Ansys channel revenue on a gross basis) that are neutral to EPS. A premium multiple leaves little room for disappointment, so integration progress and the China trajectory matter as much as headline beats.
Who competes with Synopsys, Inc. (SNPS)?
Direct EDA rivals
Cadence Design Systems is the primary head-to-head competitor; together the two are often cited at roughly 85 percent of the EDA market, making it effectively a duopoly. Siemens EDA (formerly Mentor Graphics) is the third major player. Cadence has been expanding aggressively, including a multi-billion-dollar deal for Hexagon's design and engineering business, intensifying competition in simulation and system design.
Simulation and systems software
With the Ansys acquisition, Synopsys now competes more directly in engineering simulation and multiphysics analysis, a space historically led by Ansys itself alongside players like Dassault Systemes (SIMULIA) and Siemens' broader digital-industries software. This widens the competitive field from pure chip design into system-level modeling and multiphysics.
Chip IP and adjacent providers
In semiconductor IP, Synopsys competes with Arm and Cadence, among others, for the licensable building blocks that go into chips. More broadly, in-house design teams at large chipmakers and hyperscalers, plus foundry-provided tools, represent alternative ways customers can meet some design needs, though the specialized EDA flow keeps most spending with the major vendors.
How to invest in Synopsys, Inc. (SNPS)
There are three common ways to get SNPS exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so SNPS sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where SNPS fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
The bottom line on Synopsys, Inc. (SNPS)
Synopsys is one half of an EDA duopoly with a mission-critical grip on chip design, now enlarged by the Ansys simulation deal into system-level engineering. It trades as a premium compounder, so returns hinge on integration execution, holding share against Cadence, and China export headwinds more than on demand for its tools.
Build a basket around SNPS with Walnut
Use Synopsys, Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is SNPS a good stock to buy right now?
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That depends on your goals, time horizon, and risk tolerance, and this is not investment advice. The bull case is a dominant EDA position, recurring revenue, AI chip demand, and the Ansys deal expanding Synopsys into system-level simulation with rising margins. The bear case is China export headwinds that have pressured guidance, heavy integration and competitive execution risk against Cadence, and a premium valuation that leaves little room for disappointment. Weigh both against your portfolio.
What does Synopsys actually do?
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Synopsys makes electronic design automation software, the specialized tools chip companies use to design and verify semiconductors, along with licensable chip IP and services. After acquiring Ansys, it also provides physics-based simulation for whole systems. Its products sit deep in the semiconductor design flow, so most advanced chips and AI accelerators are created using Synopsys or a close competitor's tools, generating largely recurring revenue.
What was the Ansys acquisition about?
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Synopsys closed its roughly $35 billion acquisition of Ansys in July 2025. Ansys is a leader in engineering simulation and multiphysics analysis, so the deal extends Synopsys from chip-level design into simulating entire systems. Management frames the combination as widening its addressable market toward a figure near $31 billion and enabling capabilities like Multiphysics Fusion, though integrating a target that large carries real execution and synergy risk.
Who are Synopsys's main competitors?
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Its chief rival is Cadence Design Systems; together the two are often cited at roughly 85 percent of the EDA market, making it effectively a duopoly. Siemens EDA is the third major player. With Ansys, Synopsys now also competes in engineering simulation against firms like Dassault Systemes, and in chip IP it competes with Arm and Cadence. Cadence has been expanding through its own acquisitions.
How do China export controls affect Synopsys?
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US export controls have required Synopsys and its peers to obtain licenses to sell to Chinese entities, which disrupted new orders and fulfillment in that market and contributed to softer guidance. China is a meaningful part of the semiconductor design market, so tighter or looser rules can swing results. Because trade policy is outside the company's control, it adds a layer of uncertainty on top of normal business execution.
Does Synopsys pay a dividend?
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Synopsys has historically not been an income stock and has focused on reinvesting in the business, acquisitions like Ansys, and share repurchases rather than paying a regular dividend. Investors generally hold it for growth and its strategic position in chip design, not for yield. Always check the latest company disclosures for any current capital-return policy before assuming there is or is not a payout.
Why is Synopsys stock considered expensive?
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Synopsys trades at a premium, high multiple because investors pay up for its dominant, recurring EDA franchise, high switching costs, and exposure to AI chip growth. The trade-off is that a rich valuation prices in continued execution, so any slowdown, margin slip, integration stumble, or China shock can compress the multiple quickly. A notable 2026 drawdown showed how sharply high-multiple design-software names can fall on disappointment.
How can I get exposure to Synopsys through an ETF?
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SNPS appears in many semiconductor, technology, and software ETFs, where it sits among chip and design-software names. ETF exposure spreads single-stock risk across many holdings but dilutes how much any Synopsys move affects you. Because weightings vary widely, check a fund's holdings and how large its Synopsys position is before assuming meaningful exposure to the stock specifically.
What are the main risks of investing in SNPS?
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The key risks are China export controls that have already pressured guidance, the execution and synergy risk of integrating the roughly $35 billion Ansys deal, competitive pressure from a resurgent Cadence, and a premium valuation with little margin for error. Semiconductor-cycle softness and Design IP margin swings add variability. Because so much of the return case rests on execution and multiple, disappointments can hit the stock hard.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Synopsys, Inc.'s investor relations page or your broker before making investment decisions.