Synopsys SNPS
Synopsys is a software company that designs electronic design automation (EDA) tools and intellectual property (IP) for other companies, such as Intel and AMD, to design and manufacture semiconductor chips. Synopsys shows exceptional growth (revenue +42.4%, earnings +89.3%) and a gross margin of 82.9%, but its high debt (ND/EBITDA 3.49) and demanding valuation (P/E 74) make it vulnerable to rising interest rates, balancing its profile.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Synopsys is a software company that designs electronic design automation (EDA) tools and intellectual property (IP) for other companies, such as Intel and AMD, to design and manufacture semiconductor chips. Synopsys shows exceptional growth (revenue +42.4%, earnings +89.3%) and a gross margin of 82.9%, but its high debt (ND/EBITDA 3.49) and demanding valuation (P/E 74) make it vulnerable to rising interest rates, balancing its profile.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.3 |
| Quality / Moat | 5.5 |
| Valuation | 3.1 |
| Growth | 9.7 |
| Dividend | 1.5 |
| Momentum | 3.0 |
| Risk & Context | 4.7 |
OVERALL SCORE: 5.1/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and geopolitical tensions pressuring tech stocks affect Synopsys due to its high duration (P/E 74) and exposure to the semiconductor cycle. However, its role as an EDA tool provider for the AI capex cycle partially mitigates this risk.
News considered in the analysis
- Zacks.com featured highlights include Brinker International, Synopsys and FirstEnergy — Listículo promocional de Zacks sin información nueva sobre Synopsys.
- AMD Stock And 2 US AI Infrastructure Plays Investors Are Watching — Mención genérica en un listado de acciones de infraestructura de IA; no aporta información específica sobre Synopsys.
- Is Synopsys (SNPS) a Breakout Play as Headwinds Subside and BNP Paribas Upgrades? — Upgrade de BNP Paribas, señal positiva moderada que refleja confianza en la recuperación de la empresa.
- HSBC Upgrades Synopsys, Sets Street-High $700 Target — Upgrade de HSBC con objetivo de precio máximo del mercado (700 USD), implica una revalorización potencial del 69% y es una señal material de mejora en la percepción del mercado.
- Synopsys Stock Gets an Upgrade. Why This Analyst Sees 69% Upside. — Cobertura de Barron's sobre el upgrade de HSBC, amplifica la señal positiva y sugiere que el mercado aún no ha descontado todo el potencial alcista.
Verdict: Hold, with attention to the evolution of interest rates and the company's ability to sustain its growth in the AI cycle.
Main risk: The main risk is the high debt (ND/EBITDA 3.49) in a rising interest rate environment, which could compress margins and limit future investment capacity.
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