Synopsys, Inc. (NASDAQ: SNPS) stock is back in focus on Tuesday, December 16, 2025, as investors balance a post-earnings reset with a new wave of Wall Street price-target updates, a JPMorgan semiconductor “top picks” outlook, and fresh legal deadline notices tied to a securities class action.
As of the latest trade timestamp available Tuesday, SNPS was trading around $459.77, up roughly $5 (about 1.1%) on the day, after moving between $451.02 and $464.97.
Below is what’s driving Synopsys stock today—plus the most relevant forecasts and analysis points shaping expectations into fiscal 2026.
Synopsys stock: what’s happening on Dec. 16, 2025
SNPS shares are attempting to stabilize after last week’s earnings-driven volatility. The stock’s intraday range (roughly $451–$465) underscores how sensitive sentiment remains to two big variables:
- How quickly Synopsys can turn its Ansys acquisition into durable, cross-sell growth, and
- Whether the company’s IP business (Design IP) is bottoming—or still digesting customer and geopolitical headwinds.
Synopsys itself has framed fiscal 2026 targets with explicit sensitivity to policy: the company said its targets assume no further changes to export control restrictions or current U.S. “Entity List” restrictions—a reminder that geopolitics remains part of the SNPS investment case. [1]
The headlines moving Synopsys on Dec. 16: news, notices, and market positioning
1) JPMorgan’s semiconductor outlook keeps “AI infrastructure” center stage
A key market narrative today is continued confidence that AI-driven data center investment will remain strong into 2026. Market commentary tied to JPMorgan’s sector view highlights expectations for another year of elevated AI infrastructure spend, which can benefit the entire “tools and picks-and-shovels” ecosystem around semiconductors. [2]
Why this matters for Synopsys: EDA (electronic design automation) demand typically tracks chip design complexity and R&D intensity, not just unit volumes. In a world of fast iteration cycles for AI accelerators, networking silicon, and advanced packaging, “design effort” often rises faster than shipments.
2) Legal deadline notices hit the tape (class action lead-plaintiff deadline: Dec. 30, 2025)
Multiple law firms published deadline alerts on Dec. 16, 2025, reminding shareholders about a lead-plaintiff motion deadline of December 30, 2025 related to a securities class action involving Synopsys. [3]
These notices are not unusual after large drawdowns, but they can affect short-term sentiment because they:
- resurface past volatility,
- keep negative headlines circulating, and
- introduce uncertainty around legal costs or disclosures (even when outcomes are unknowable at this stage).
3) Institutional-position update: Grove Bank & Trust reports a sharply higher stake
Another “today” item: a MarketBeat filing recap says Grove Bank & Trust increased its position in Synopsys dramatically during Q3, ending with 2,435 shares after buying additional shares. [4]
This is a small-holder datapoint in the big picture, but it contributes to the broader theme: institutions continue to treat SNPS as a core “infrastructure software for semiconductors” name, even amid choppy price action.
The biggest fundamental catalyst: Synopsys’ Q4 beat and fiscal 2026 guide
Synopsys’ most consequential “fresh information” for forecasts remains its fiscal Q4 and full-year 2025 results, released Dec. 10, 2025, along with initial fiscal 2026 targets.
Q4 and FY2025 highlights (what the company actually reported)
In its earnings release, Synopsys reported:
- Q4 FY2025 revenue:$2.255 billion (vs. $1.636 billion in Q4 FY2024)
- Ansys contribution to Q4 revenue:$667.7 million
- FY2025 revenue:$7.054 billion (about 15% higher than FY2024’s $6.127B)
- Backlog:$11.4 billion (management emphasized it as a strength) [5]
On profitability:
- Non-GAAP EPS in Q4:$2.90
- FY2025 non-GAAP EPS:$12.91 [6]
Reuters also described the quarter as supported by strong demand for chip design tools amid AI and advanced computing investment, noting the Ansys acquisition contribution as well. [7]
Fiscal 2026 targets (what management is forecasting)
For fiscal 2026, Synopsys guided to:
- FY2026 revenue:$9.56B to $9.66B
- FY2026 non-GAAP EPS:$14.32 to $14.40
- Q1 FY2026 revenue:$2.365B to $2.415B (quarter ending Jan. 31, 2026)
- Q1 FY2026 non-GAAP EPS:$3.52 to $3.58 [8]
In plain English: Synopsys is pointing to a significantly larger revenue base post-Ansys, while highlighting margin and earnings power—even while acknowledging some parts of the business are still “transitional.”
The Nvidia factor: why investors keep linking SNPS to “AI infrastructure”
A major strategic storyline is Synopsys’ deepening relationship with Nvidia.
Reuters reported that Nvidia invested $2 billion in Synopsys as part of an expanded multi-year partnership to develop AI-powered tools for design and engineering. [9]
This matters to the stock’s medium-term narrative because it reinforces Synopsys as:
- an “AI-enabler” (tools that help build AI chips and systems faster), and
- a potential beneficiary of AI investment even when the chip cycle itself is uneven.
Restructuring and workforce cuts: the “integration efficiency” trade-off
Synopsys has also been reshaping its cost structure following the Ansys deal. Reuters reported in November that Synopsys planned to lay off about 10% of its workforce, positioning the move as a way to reinvest toward growth areas such as AI-driven design and system-level solutions. [10]
From an investor perspective, this is a double-edged sword:
- Bullish angle: cost discipline can protect operating leverage and fund R&D in priority areas.
- Bearish angle: restructurings can distract execution teams and carry charges that complicate near-term comparability.
Analyst forecasts and price targets: where Wall Street stands heading into 2026
A heavy dose of the “current forecasts” story is coming from a cluster of analyst notes and target changes published in mid-December.
Here are the most referenced updates and consensus markers:
Notable recent price-target moves (mid-December 2025)
- BofA Securities: upgraded SNPS to Buy from Neutral; raised price target to $560 from $500 (citing EPS beat potential and “catch-up” dynamics). [11]
- Morgan Stanley: raised price target to $550 from $510; maintained Overweight (citing multi-year EDA demand drivers and systems simulation opportunity). [12]
- Needham: raised price target to $580 from $550; maintained Buy (while noting subdued IP growth risk tied to specific customer challenges). [13]
- Wells Fargo: raised price target to $500 from $445; maintained Equal Weight, calling the fiscal 2026 setup “mixed” (with core EDA growth “somewhat disappointing” in its view). [14]
- Goldman Sachs: maintained Buy and $560 target after Q4; noted guidance that was mixed on revenue but stronger on EPS. [15]
- Wolfe Research: reiterated Outperform with a $540 price target (with commentary touching on backlog strength and China sensitivity). [16]
Consensus snapshot (targets and rating)
Depending on the data source and timing, consensus targets cluster in the mid-$500s, with a wide dispersion reflecting the push-pull between “AI infrastructure tailwinds” and “IP/geopolitics uncertainty.”
For example, MarketBeat’s forecast page shows an average price target around the low-to-mid $560s and a range that spans from the low $400s to around $650. [17]
StockAnalysis similarly shows a “Strong Buy” consensus with a price target around the mid-$560s. [18]
How to read this: Analysts are broadly constructive on Synopsys’ strategic positioning, but not uniform on the timing of the payoff—especially for the Design IP segment and China-related demand visibility.
What the market is really debating about Synopsys in 2026
The bull case for SNPS stock
- AI-driven silicon complexity remains a structural tailwind. Even if end-demand fluctuates, the design challenge keeps getting harder—typically good for EDA leaders. [19]
- “Silicon-to-systems” platform story got bigger with Ansys. Synopsys is no longer “just EDA”; it’s pushing toward broader engineering workflows. The company’s own fiscal 2026 outlook explicitly includes ~$2.9B expected Ansys revenue at the midpoint. [20]
- Backlog strength adds resilience. Management highlighted $11.4B backlog, supporting visibility even in uncertain macro conditions. [21]
- Nvidia partnership validates strategic relevance. The reported $2B Nvidia investment and tool collaboration reinforce that Synopsys sits in the critical path of AI hardware roadmaps. [22]
The bear case (and the risks investors keep pricing in)
- Design IP weakness could persist longer than bulls expect. Multiple analyst notes flag “muted” or “subdued” IP growth, with some pointing to specific foundry/customer challenges. [23]
- China and export controls remain a swing factor. Synopsys itself explicitly conditioned targets on no additional export-control changes, which is effectively a warning label for forecast reliability. [24]
- Integration execution risk (Ansys). The deal expands the platform opportunity—but also raises complexity across product, sales, and go-to-market. The Ansys acquisition was completed in July 2025. [25]
- Legal overhang headlines. Today’s lawsuit-related deadline alerts amplify reputational noise and can create short-term pressure, regardless of ultimate merits or outcomes. [26]
- Valuation sensitivity. Synopsys is often priced as a premium “software-like” compounder; when guidance is described as “mixed,” the multiple can compress quickly. [27]
Technical and positioning context: where SNPS sits versus its 52-week range
Synopsys’ widely reported 52-week range is approximately $365.74 to $651.73. [28]
With shares around $460 today, that places the stock roughly:
- ~29% below the 52-week high, and
- ~26% above the 52-week low, based on those reference points. [29]
This “middle third” positioning is consistent with what investors have been doing since the late-summer volatility: treating SNPS as a long-duration compounder, but demanding clearer evidence that IP headwinds are easing and the Ansys integration is translating into upside.
What to watch next: the near-term calendar for Synopsys investors
1) The FY2025 10-K filing deadline window
Synopsys said it expects to file its FY2025 annual report on Form 10-K on or before Dec. 30, 2025. [30]
Investors often look for additional segment color, risk-factor updates, and integration disclosures in the 10-K.
2) Next earnings timing (late February 2026 — estimates vary)
Market calendars commonly point to late February 2026 as the next reporting window (often shown as an estimate until confirmed by the company). [31]
3) Proof points for 2026: IP stabilization + Ansys cross-sell
The “make-or-break” questions for many forecasts are:
- Do Design IP trends stabilize enough to re-accelerate in the second half?
- Does Synopsys show measurable traction from bundling EDA + simulation into a broader workflow?
- Do restructuring actions improve margins without damaging innovation velocity?
Bottom line: Synopsys stock is trading the 2026 narrative—before 2026 arrives
On Dec. 16, 2025, Synopsys stock is being pulled by two opposing forces:
- Optimism around a larger Synopsys platform (post-Ansys), AI infrastructure momentum, backlog, and a dense cluster of price-target reiterations and raises. [32]
- Caution around mixed interpretations of guidance, Design IP recovery timing, policy/geopolitical sensitivity, and headline risk from lawsuit notices. [33]
References
1. investor.synopsys.com, 2. www.marketwatch.com, 3. www.globenewswire.com, 4. www.marketbeat.com, 5. investor.synopsys.com, 6. investor.synopsys.com, 7. www.reuters.com, 8. investor.synopsys.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.investing.com, 12. www.investing.com, 13. www.investing.com, 14. www.investing.com, 15. www.investing.com, 16. www.investing.com, 17. www.marketbeat.com, 18. stockanalysis.com, 19. www.reuters.com, 20. investor.synopsys.com, 21. investor.synopsys.com, 22. www.reuters.com, 23. www.investing.com, 24. investor.synopsys.com, 25. www.sec.gov, 26. www.globenewswire.com, 27. www.investing.com, 28. stockanalysis.com, 29. stockanalysis.com, 30. investor.synopsys.com, 31. finance.yahoo.com, 32. investor.synopsys.com, 33. www.investing.com
