NEW YORK, January 2, 2026, 15:42 ET — Regular session
- Synopsys shares rise about 2.8% in afternoon trade, bucking a mixed tape for big-cap tech
- Loop Capital raises its price target to $600 from $570, reiterating a buy rating
- Semiconductor stocks lead early-2026 gains, with chip ETFs up more than 4%
Synopsys Inc (SNPS) shares rose 2.8% to $482.78 in afternoon trading on Friday, a strong start for the Nasdaq-listed chip-design software maker on the first U.S. session of 2026.
The move matters because investors are re-setting positions after last year’s rally in growth stocks, and Synopsys sits close to the front end of the semiconductor spending cycle.
Synopsys sells electronic design automation (EDA) software — tools that help engineers design and test chips before they are manufactured — making the stock a key read-through for corporate R&D budgets tied to AI and advanced computing.
Loop Capital raised its price target — an analyst’s estimate of where a stock could trade — to $600 from $570 and reiterated a “buy” rating, according to MT Newswires. MarketScreener
The broader chip trade was firm. The iShares Semiconductor ETF was up about 4.7% and the VanEck Semiconductor ETF rose about 4.1%, while the S&P 500 ETF SPY added roughly 0.2% and the Nasdaq-tracking Invesco QQQ was little changed.
“Stocks trade expensive on 18 of 20 measures,” Bank of America equity and quant strategist Savita Subramanian wrote in a note, underscoring why traders are quick to test valuations at the turn of the year. Reuters also cited a 3.5% rise in the Philadelphia SE Semiconductor index in early afternoon trade. Reuters
Synopsys competes most directly with Cadence Design Systems in the EDA market, a niche dominated by a handful of vendors. Cadence shares were down about 0.5% on Friday.
Synopsys last updated investors on Dec. 10, when it topped quarterly revenue estimates and forecast fiscal 2026 revenue of about $9.6 billion at the midpoint, including an expected $2.9 billion from Ansys. The company also said it planned to cut about 10% of its workforce.
The outlook reflects Synopsys’ $35 billion acquisition of engineering simulation company Ansys, which it completed in July. Synopsys said it expects the first integrated capabilities from the deal in the first half of 2026.
In December, Nvidia took a $2 billion stake in Synopsys as part of an expanded multi-year tie-up to jointly develop design and engineering tools using Nvidia’s AI technology, Reuters reported.
Near-term, investors will be listening for any incremental commentary as Synopsys heads into CES 2026 next week. The company has said it will exhibit at the Las Vegas show Jan. 6–9 and has multiple executives slated for sessions, including an appearance by CEO Sassine Ghazi.
The next formal demand check will come with Synopsys’ fiscal first-quarter results. Nasdaq’s earnings calendar currently lists an estimated report date of Feb. 25, and traders will watch for updates on integration progress and the durability of 2026 guidance.
