How Synopsys' AI Partnership With NVIDIA (SNPS) Has Changed Its Investment Story

At the recent NVIDIA GTC Washington, D.C. conference, Synopsys showcased its expanded GPU-accelerated software portfolio and highlighted a collaboration to integrate its AgentEngineer technology with NVIDIA's AI toolkits for improved chip design and engineering productivity. This partnership and technology push mark Synopsys' growing emphasis on AI-enhanced engineering, signaling an intent to drive innovation across compute-intensive workloads and system design. We'll examine how Synopsys' AI collaboration with NVIDIA could influence its investment outlook as integration of advanced solutions accelerates.

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Synopsys Investment Narrative Recap

To be a shareholder in Synopsys right now, you need to believe that its leadership in chip design and AI-powered engineering solutions can drive growth despite export restrictions and regional uncertainty. While the recent collaboration with NVIDIA highlights progress on technology innovation and AI integration, this news does not fundamentally shift the most important near-term catalyst, the Ansys integration, or the primary risk, which remains ongoing challenges with China and concentrated revenue exposure.

One of the most relevant announcements to the latest news is Synopsys’ expanded partnership with Tata Technologies on software-defined mobility and electronics digital twins. This underscores Synopsys’ focus on tackling complex, high-value opportunities in automotive and next-generation chip design, which aligns with rising demand for their advanced tools and supports future growth catalysts, particularly as the industry migrates toward AI-heavy, software-centric development models.

By contrast, investors should be aware of persistent export restrictions and regional market headwinds that could continue to impact near-term performance…

Read the full narrative on Synopsys (it's free!)

Synopsys' narrative projects $12.1 billion in revenue and $2.7 billion in earnings by 2028. This requires 24.7% yearly revenue growth and an increase in earnings of $1.3 billion from the current $1.4 billion.

Uncover how Synopsys' forecasts yield a $556.40 fair value, a 22% upside to its current price.

Exploring Other PerspectivesSNPS Community Fair Values as at Oct 2025

Fair value estimates from 5 Simply Wall St Community members range from US$420 to US$556 per share, showing differing expectations for Synopsys. However, with export challenges in China still unresolved, consider how widely investor outlooks on growth and risk can vary.

Story Continues

Explore 5 other fair value estimates on Synopsys - why the stock might be worth as much as 22% more than the current price!

Build Your Own Synopsys Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Synopsys research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Our free Synopsys research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Synopsys' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SNPS.

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