New York, February 23, 2026, 06:18 EST — Premarket
- Synopsys slipped roughly 0.6% ahead of the bell, following Friday’s close.
- HSBC downgraded Synopsys to “hold” and trimmed its price target.
- Synopsys is set to report results and guidance on Feb. 25, with investors on edge.
Synopsys slipped in U.S. premarket action Monday, pressured by an HSBC downgrade that landed days before the chip-design software firm’s quarterly numbers. Shares dropped roughly 0.6% to $437.50, following a $439.94 close on Friday. (StockAnalysis)
Tariff talk is back in focus, shaking up risk sentiment and sending U.S. stock index futures into the red ahead of the open. “It’s really hard … to know how do you plan,” said Arthur Laffer Jr., president of Laffer Tengler Investments, highlighting the planning headaches tariffs bring for companies. (Reuters)
Synopsys shareholders are facing an inconvenient moment. The firm will release its first-quarter fiscal 2026 results after the bell on Wednesday, Feb. 25, with management expected to lay out its guidance during a 5 p.m. Eastern conference call. (investor.synopsys.com)
HSBC Global Investment Research lowered Synopsys to “hold” from “buy” on Friday, telling clients it expects few triggers through full-year 2026 and sees mounting pressure in the company’s main segments. The bank dropped its price target to $455 from $545, highlighting softer momentum in Design IP — those off-the-shelf chip components licensed to clients. It also warned of trouble spots in electronic design automation (EDA) as geopolitical risk, tighter export rules tied to China, and uncertainties around Intel’s foundry plans weigh on the outlook. (Investing.com)
Cadence Design Systems slipped too, with shares down roughly 0.4% to $294.99 in premarket moves. The chip design tools heavyweight is another key player in the space. (StockAnalysis)
Synopsys serves as a key indicator for demand linked to advanced processors, especially those powering artificial intelligence. So, when the company adjusts its outlook, investors tend to interpret it as a signal for customer spending intentions and for trends across the broader semiconductor tools industry.
Still, the downgrade doesn’t close the book here. If Wednesday brings a forecast that tops expectations, it could offset some of the sting. On the flip side, any hesitancy around demand could leave shares under pressure.
Traders are eyeing the pace of investor rotation into high-priced tech stocks following the recent tariff moves. For names such as Synopsys, that shift is significant—sentiment tends to bounce around, even when there’s no fresh news from the company itself.
