Updated: December 10, 2025
On December 10, 2025, Synopsys, Inc. (NASDAQ: SNPS) is back in the spotlight. The chip-design software specialist is trading around $474 per share, up roughly 1.7% on the day ahead of its Q4 fiscal 2025 earnings release after the close, and still well below its 2025 highs after a brutal September sell-off. [1]
Over the past month, the stock has quietly climbed about 16%, helped by a blockbuster $2 billion strategic investment from Nvidia, fresh AI-focused partnerships, and a wave of new analyst calls. [2]
At the same time, Synopsys is digesting a $35 billion acquisition of Ansys, executing a restructuring that will cut roughly 10% of its workforce, and facing multiple securities class-action lawsuits tied to its design IP business. [3]
Here’s how the key news, forecasts and analysis around Synopsys stock stack up as of December 10, 2025.
Synopsys stock today: price and performance snapshot
- Price: about $474.01
- Today’s range: roughly $461.88–$475.43
- 52-week range:$365.74–$651.73
- 1-year performance: ~–7–8% over the past 12 months [4]
After peaking above $650 earlier in 2025, Synopsys plunged in September following a disappointing Q3 report and weak performance in its Design IP segment. [5]
According to a legal filing summarized by BFA Law, the company’s Q3 2025 Design IP revenue was about $425.9 million, down roughly 7.7% year-over-year, while net income fell around 43%. The stock then collapsed by nearly 36% in a single day, from about $604 on September 9 to roughly $388 on September 10. [6]
That drawdown explains why Synopsys is still well below its highs, even after Nvidia’s vote of confidence and a recent rebound.
From September shock to December rebound
The September quarter was a turning point for the Synopsys narrative:
- Management disclosed that Design IP customers were demanding more customization, stretching resources and hurting segment economics. [7]
- The company signaled that it might need to evolve its business model for IP, prompting concerns about margins and growth visibility. [8]
- Synopsys also missed overall Q3 revenue estimates, contributing to the sharp selloff. [9]
Those disclosures sparked a series of securities class-action lawsuits from multiple law firms (including BFA Law and DJS Law Group), alleging that earlier statements about the strength and economics of the Design IP business were misleading. Investors have until December 30, 2025 to seek lead-plaintiff status in at least some of these cases. [10]
In response to the new reality after Ansys and the IP shock, Synopsys announced a major restructuring on November 12, 2025, aiming to:
- Lay off about 10% of its workforce (roughly 2,000 employees out of ~20,000)
- Close some sites
- Take pre-tax charges of $300–350 million
The company says the move is intended to redirect spending toward higher-growth opportunities following its Ansys acquisition and Q3 miss. [11]
Despite all this, sentiment has improved into year-end thanks largely to one headline: Nvidia’s $2 billion bet on Synopsys.
Nvidia’s $2 billion bet and expanded AI partnership
On December 1, 2025, Nvidia announced it would invest $2 billion in Synopsys via a common-stock purchase at $414.79 per share, forming part of an expanded, multi-year strategic partnership. [12]
Key features of the deal and partnership:
- Nvidia acquires roughly a low-single-digit percentage stake in Synopsys (around 2.6% according to one analysis). [13]
- Synopsys will integrate Nvidia’s AI and accelerated computing stack—including CUDA, CUDA‑X libraries, Omniverse digital twins and “agentic AI”—into its engineering and EDA platforms. [14]
- The goal is to dramatically speed up chip design, verification and multiphysics simulation, pushing more EDA workloads from CPUs onto Nvidia GPUs. [15]
- The partnership is explicitly non‑exclusive: Synopsys can still work with AMD, Intel and other chipmakers, and there is no contractual requirement to spend the $2B on Nvidia hardware, according to commentary from Vested Finance. [16]
A Reuters report noted that Synopsys shares jumped about 7% in premarket trading after the announcement, while Nvidia dipped nearly 2%, as investors debated whether the deal adds to concerns about “circular financing” in the AI ecosystem. [17]
From a valuation perspective, a widely shared 24/7 Wall St. analysis argues that Synopsys now trades around 31.8× forward earnings, roughly 25% below its peak, and suggests Nvidia may have secured a bargain if AI-related growth plays out. [18]
Ansys acquisition: building a silicon-to-systems powerhouse
Well before Nvidia’s check cleared, Synopsys made its biggest strategic move of all: buying Ansys, a leader in simulation and multiphysics software.
- The $35 billion cash-and-stock deal was announced in January 2024 and closed on July 17, 2025 after global antitrust reviews. [19]
- China’s State Administration for Market Regulation granted conditional approval, requiring Synopsys to maintain fair and non‑discriminatory access to EDA products and preserve interoperability for Chinese customers. [20]
- Synopsys says the combination expands its total addressable market to about $31 billion, marrying EDA, IP and simulation into a “silicon‑to‑systems” platform for AI‑era product development. [21]
Strategically, the Ansys deal and Nvidia partnership pull Synopsys deeper into system‑level design, including sectors like automotive, aerospace, industrial equipment and 6G infrastructure—not just chips. [22]
But large deals come with large risks. The restructuring and layoffs announced in November are in part an attempt to realign Ansys and legacy Synopsys operations, and investors will be looking for concrete synergy targets and integration milestones on today’s earnings call. [23]
Product and AI roadmap: Synopsys.ai and accelerated EDA
Synopsys isn’t just betting on AI through Nvidia—it’s also embedding AI into its own tools:
- In September 2025, the company unveiled expanded GenAI features across its EDA portfolio, aiming to cut design workflows from days to hours or hours to minutes. [24]
- These capabilities are marketed under the Synopsys.ai brand and are meant to automate tasks like verification, test generation and design-space exploration. [25]
Recent commentary on Synopsys from Seeking Alpha and other outlets repeatedly highlights EDA plus AI as one of the most attractive ways to monetize the AI boom, since every advanced chip—and many complex systems—depend on such tools. [26]
The expanded Nvidia partnership effectively adds GPU acceleration and Omniverse‑style digital twins on top of those AI‑assisted flows, promising a step‑change in speed for both chip and system designers. [27]
Q4 FY 2025 earnings later today: what Wall Street expects
Synopsys will report Q4 and full‑year fiscal 2025 results after the market close on December 10 and host its earnings call at 2:00 p.m. Pacific / 5:00 p.m. Eastern. [28]
Ahead of the release, consensus expectations from sources such as Seeking Alpha and Zacks coalesce around:
- Q4 revenue: about $2.24 billion, up roughly 37% year‑over‑year, boosted by the Ansys acquisition [29]
- Q4 EPS (non‑GAAP): around $2.88, which would be down mid‑teens percentage vs. last year, reflecting deal-related expenses, restructuring and IP headwinds [30]
A late‑October preview piece noted that full‑year 2025 EPS is expected to fall by about 20% vs. fiscal 2024, even as revenue continues to grow, underscoring the tension between Synopsys’s long‑term growth story and near‑term profitability. [31]
Another pre‑earnings breakdown from Trefis pegs Synopsys’s trailing 12‑month revenue at roughly $6.4 billion, with about $1.1 billion in operating profit and $2.0 billion in net income, and a market capitalization near $75 billion heading into tonight’s numbers. [32]
Until the results drop, the stock is trading on expectations: whether Nvidia and Ansys can offset design‑IP issues and restructuring noise will be the central question.
How analysts see Synopsys stock now
Despite September’s shock, Wall Street remains broadly bullish on Synopsys:
- A recent Investing.com summary notes that, as of December 5, the average 12‑month price target is about $559.48, with estimates ranging from roughly $429 to $662, implying a bit over 20% upside from a recent close near $466. [33]
- Aggregators like TickerNerd and Public.com show median targets around $550–$560, again implying mid‑teens to low‑20s upside from current levels. [34]
- TickerNerd also reports that out of 31 analysts, 19 rate SNPS a Buy, 4 Hold, and 2 Sell, with the overall consensus described as “bullish.” [35]
Recent rating moves paint a similar picture:
- Citi initiated or reset coverage on Synopsys at Buy in late November, arguing the EDA industry is entering a new growth cycle. [36]
- Bank of America upgraded the stock from Underperform to Neutral on December 8, while trimming its target from $525 to $500 to reflect lower near‑term earnings power. [37]
- Rosenblatt recently reiterated or upgraded to a Buy with a $560 price target ahead of Q4 results. [38]
Zacks and other research providers highlight that Synopsys’s average brokerage recommendation sits between “Strong Buy” and “Buy”, based on over 20 covering firms. [39]
Put simply: the Street still likes the story, but is watching execution closely.
Valuation check: expensive, reasonable, or opportunity?
Different analysts see Synopsys’s valuation through slightly different lenses:
- 24/7 Wall St. pegs the stock at about 31.8× forward earnings after the Nvidia deal—elevated, but arguably reasonable for a leading AI‑leveraged software name that just landed a deep strategic partnership. [40]
- Investing.com data shows Synopsys shares are down about 7–8% over the past year, with a 52‑week range of $365.74–$651.73, illustrating how volatile sentiment has been around the Ansys deal, IP issues and AI hype. [41]
The Nvidia stake has led some commentators to argue the stock is now “a reasonably priced growth name” at the heart of applied AI, while others warn that high multiples plus ongoing litigation and restructuring justify caution. [42]
Ultimately, tonight’s guidance for fiscal 2026—especially around margins, synergy capture and IP growth—may determine whether investors see the current multiple as a ceiling or a floor.
Litigation overhang: class actions and design IP
Legal headlines are an important piece of the current Synopsys story:
- BFA Law, DJS Law Group and other firms have announced securities class actions alleging that Synopsys misled investors about the health of its Design IP business and its strategic focus on AI between December 2024 and September 2025. [43]
- The complaints highlight the September 9, 2025 Q3 earnings release, where Synopsys disclosed underperformance in Design IP and greater customization demands from customers, followed by a ~36% stock plunge the next day. [44]
- Lead‑plaintiff deadlines are currently set for December 30, 2025 in several of these cases. [45]
None of these allegations has been proven in court, and Synopsys will have opportunities to respond. But for investors, they add headline risk and potential future costs (settlements or legal expenses) on top of the already complex integration and restructuring story.
Key themes to watch on the Q4 2025 earnings call
Given all of the above, here are the big questions likely to drive Synopsys stock in the near term:
- Ansys integration & synergy roadmap
- How quickly can Synopsys rationalize overlapping functions and realize cost and revenue synergies from the Ansys deal?
- Will management put specific margin targets and time frames on the integration? [46]
- Design IP recovery and business model changes
- Can the company stabilize and re‑accelerate its Design IP segment after the Q3 stumble?
- What changes—pricing, contract structures, productization—are being made to restore economics? [47]
- Nvidia partnership metrics
- When will investors see first revenue or bookings milestones tied to the Nvidia alliance?
- Are there early benchmarks showing GPU‑accelerated EDA tools significantly reducing run times or costs for customers? [48]
- AI adoption and Synopsys.ai traction
- How quickly are customers adopting the company’s GenAI‑driven EDA workflows?
- Does Synopsys see AI as primarily a productivity tool, a pricing lever, or both? [49]
- Capital allocation and balance sheet
- With a large Ansys deal completed and Nvidia cash on the table, how will Synopsys balance debt, buybacks, and reinvestment? [50]
- Guidance and long‑term targets
- Does management reaffirm or update its double‑digit growth and high‑margin profile in light of layoffs, lawsuits and integration challenges? [51]
Bottom line
As of December 10, 2025, Synopsys stock sits at the intersection of huge opportunity and real execution risk:
- The company is now a core infrastructure player in the AI stack, with leadership in EDA, expanded AI‑driven tools and a deepening alliance with Nvidia. [52]
- The Ansys acquisition and integration could give Synopsys a differentiated silicon‑to‑systems platform in a market worth tens of billions of dollars. [53]
- Yet investors must weigh that upside against IP‑segment turbulence, restructuring charges, legal overhangs and a still‑rich valuation. [54]
Analysts are, on balance, optimistic, with consensus price targets suggesting double‑digit upside from today’s levels—but much hinges on what Synopsys says (and delivers) in its Q4 release and 2026 outlook.
References
1. www.investing.com, 2. finance.yahoo.com, 3. investor.synopsys.com, 4. investor.synopsys.com, 5. investor.synopsys.com, 6. www.newsfilecorp.com, 7. www.newsfilecorp.com, 8. www.newsfilecorp.com, 9. www.reuters.com, 10. www.newsfilecorp.com, 11. www.reuters.com, 12. www.reuters.com, 13. markets.financialcontent.com, 14. investor.synopsys.com, 15. nvidianews.nvidia.com, 16. vestedfinance.com, 17. www.reuters.com, 18. 247wallst.com, 19. investor.synopsys.com, 20. www.reuters.com, 21. investor.synopsys.com, 22. futurumgroup.com, 23. www.reuters.com, 24. investor.synopsys.com, 25. investor.synopsys.com, 26. seekingalpha.com, 27. nvidianews.nvidia.com, 28. investor.synopsys.com, 29. seekingalpha.com, 30. seekingalpha.com, 31. finance.yahoo.com, 32. www.trefis.com, 33. www.nasdaq.com, 34. tickernerd.com, 35. tickernerd.com, 36. finance.yahoo.com, 37. www.benzinga.com, 38. www.nasdaq.com, 39. finviz.com, 40. 247wallst.com, 41. www.investing.com, 42. 247wallst.com, 43. www.newsfilecorp.com, 44. www.newsfilecorp.com, 45. www.newsfilecorp.com, 46. investor.synopsys.com, 47. www.newsfilecorp.com, 48. nvidianews.nvidia.com, 49. investor.synopsys.com, 50. investor.synopsys.com, 51. markets.financialcontent.com, 52. investor.synopsys.com, 53. investor.synopsys.com, 54. www.newsfilecorp.com
