Synopsys, Inc. (NASDAQ: SNPS) is a leading provider of electronic design automation (EDA) software, IP, and services for semiconductor design and verification. It serves industries like AI, automotive, and IoT, enabling complex chip design and faster time-to-market.
Key Takeaways:
- Synopsys is a key player in the semiconductor industry, providing essential tools and IP for chip design and verification.
- The company’s diverse product portfolio spans silicon design, verification, IP, and software security solutions.
- Synopsys serves critical industries including automotive, aerospace, IoT, and 5G communications.
Overview of Synopsys, Inc.
Synopsys, Inc., a leader in electronic design automation and semiconductor IP, was established in 1986 by Dr. Aart de Geus and colleagues. Initially named Optimal Solutions, it rebranded and moved to California in 1987. The company transformed chip design with its Design Compiler, shifting the industry towards language-based methodologies.
After going public in 1992, Synopsys expanded through strategic acquisitions, including Viewlogic Systems and Avant! Corporation. These moves bolstered its EDA capabilities and drove growth, with the company surpassing $1.7 billion in annual revenue by 2012. Synopsys continues to be a key player in the semiconductor industry.
Synopsys, Inc. Company Profile
| Country | United States |
| Ticker Symbol | SNPS |
| Exchange | NASDAQ |
| Founded | 1986 |
| IPO Date | 1992 |
| Industry | Electronic Design Automation (EDA) |
| Sector | Technology |
| Employees | 20,300 |
| CEO | Sassine Ghazi |
| Market Cap (September 19, 2024) | $76.18 billion |
| Website | synopsys |
Synopsys, Inc. (SNPS) Balance Sheet Analysis
Synopsys, Inc.’s 2023 balance sheet reveals robust financial health. Total assets grew to $10.33 billion, a 9.7% increase from 2022, while total liabilities rose to $4.15 billion, up 7.5%.
The company’s equity position strengthened, reaching $6.18 billion, an 11.2% increase. Net tangible assets saw a significant 32.3% jump to $1.70 billion, indicating improved asset quality.
Working capital nearly doubled to $445.17 million, suggesting enhanced liquidity. Total debt increased slightly to $687.80 million but remains manageable relative to assets and equity.
Overall, Synopsys demonstrates strong growth, improved liquidity, and a solid financial structure. The company’s balance sheet reflects effective management of resources and a promising financial growth.
Balance Sheet Data Source: finance.yahoo
Synopsys, Inc. Stock Price History
Synopsys, Inc. (NASDAQ: SNPS) had its IPO in the year 1992. Synopsys (SNPS) has undergone two stock splits in its history. The first occurred on September 11, 1995, with a 2:1 ratio. The second and most recent split took place on September 24, 2003, also with a 2:1 ratio. Cumulatively, one pre-1995 share now equals four shares.1
As of September 18, 2024, the price of Synopsys (NASDAQ: SNPS) stock stands at $495.95.
SNPS Stock Price Forecast 2024
In 2024, we expect Synopsys to experience growth driven by increasing demand for advanced semiconductor designs and software security solutions. The company’s investments in AI-driven tools like DSO.ai are likely to attract more customers in the competitive chip design market.
We forecast a growth of 12% for 2024, bringing the average stock price to $555.46.
Synopsys’ Physical Design Tools are expected to see increased adoption as manufacturers push for more efficient and powerful integrated circuits. These tools will be crucial in meeting the industry’s demand for smaller, faster chips.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2024 | $428.00 | $555.46 | $694.33 |
SNPS Stock Price Forecast 2025
As the semiconductor industry evolves, Synopsys is well-positioned to benefit from the increasing complexity of chip designs. The company’s comprehensive suite of EDA tools and IP solutions should drive further growth in 2025.
We project a growth rate of 13% for 2025, pushing the average stock price to $627.67.
The company’s Logic Synthesis tools are likely to play a key role in 2025, as designers seek more efficient ways to convert high-level design descriptions into gate-level representations. This could lead to faster time-to-market for new chip designs.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2025 | $596.00 | $627.67 | $784.59 |
SNPS Stock Price Forecast 2026
In 2026, we anticipate Synopsys to capitalize on the growing demand for AI and machine learning applications, which require increasingly sophisticated chip designs. The company’s focus on silicon lifecycle management solutions should also contribute to its growth.
We forecast a 14% increase in stock price for 2026, bringing the average to $715.54.
Synopsys’ Verification Solutions are expected to see increased demand as chip designs become more complex. These tools will be essential in ensuring the correctness of designs through simulation and formal verification methods.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2026 | $680.00 | $715.54 | $894.43 |
SNPS Stock Price Forecast 2027
As the Internet of Things (IoT) and 5G technologies continue to proliferate, Synopsys is likely to see increased demand for its IP and verification tools. The company’s strong position in these markets should drive further growth in 2027.
We project a 15% growth rate for 2027, pushing the average stock price to $822.87.
The company’s Interface IP offerings, such as USB, PCIe, and Ethernet, are likely to be in high demand as IoT devices require efficient communication protocols. This could significantly contribute to Synopsys’ revenue growth.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2027 | $782.00 | $822.87 | $1,028.59 |
SNPS Stock Price Forecast 2028
In 2028, we expect Synopsys to benefit from the ongoing digital transformation across industries. The company’s software security and quality solutions should see increased adoption as cybersecurity concerns continue to grow.
We forecast a 12% increase in stock price for 2028, bringing the average to $921.61.
Synopsys’ Processor Cores, particularly the ARC processors, may see increased adoption in specialized applications. These high-performance cores could be crucial for emerging technologies in various industries.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2028 | $876.00 | $921.61 | $1,152.01 |
SNPS Stock Price Forecast 2029
As the automotive industry continues its shift towards electric and autonomous vehicles, Synopsys’ tools for designing and verifying complex automotive systems should see increased demand. This, combined with growth in other sectors, is expected to drive the stock price higher in 2029.
We project a 13% growth rate for 2029, pushing the average stock price to $1,041.42.
The company’s Application Security Testing tools are likely to be crucial as software becomes an increasingly important component of automotive systems. This could open up new revenue streams for Synopsys.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2029 | $989.00 | $1,041.42 | $1,301.78 |
SNPS Stock Price Forecast 2030
By 2030, we anticipate Synopsys to have further strengthened its position in the EDA and semiconductor IP markets. The company’s ongoing investments in AI-driven tools and cloud solutions should continue to pay dividends, driving growth and market share.
We forecast a 14% increase in stock price for 2030, bringing the average to $1,187.22. While Synopsys focuses on EDA and semiconductor IP, other tech companies like Micron Technology are also seeing growth potential. For more insights, check out our Micron Technology (MU) stock forecast.
Synopsys Cloud is expected to see increased adoption as more companies move their chip design processes to the cloud. This could provide a significant boost to Synopsys’ revenue and market position.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2030 | $1,128.00 | $1,187.22 | $1,484.03 |
SNPS Stock Price Forecast 2031
In 2031, we expect Synopsys to continue benefiting from the increasing complexity of chip designs and the growing demand for advanced semiconductor solutions across various industries.
We project a 15% growth rate for 2031, pushing the average stock price to $1,365.30.
The company’s Custom Compiler tool is likely to see increased usage as designers push for more specialized and efficient chip designs. This could be particularly important in emerging fields like quantum computing.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2031 | $1,297.00 | $1,365.30 | $1,706.63 |
SNPS Stock Price Forecast 2032
As the semiconductor industry continues to evolve, Synopsys’ comprehensive suite of tools and IP solutions should remain in high demand. The company’s focus on innovation and adapting to market needs is expected to drive further growth in 2032.
We forecast a 12% increase in stock price for 2032, bringing the average to $1,529.14.
Synopsys’ IC Compiler is expected to play a crucial role in 2032, as the demand for more complex and efficient integrated circuits continues to grow. This tool could be key in helping designers optimize chip performance and power consumption.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2032 | $1,453.00 | $1,529.14 | $1,911.43 |
SNPS Stock Price Forecast 2033
In 2033, we anticipate Synopsys to capitalize on the continued growth of AI, machine learning, and edge computing applications. These technologies require increasingly sophisticated chip designs, which should drive demand for Synopsys’ tools and IP.
We project a 13% growth rate for 2033, pushing the average stock price to $1,727.93.
The company’s DSO.ai (AI-driven design optimization) tool is likely to see increased adoption as designers seek to leverage artificial intelligence in the chip design process. This could provide Synopsys with a significant competitive advantage.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2033 | $1,642.00 | $1,727.93 | $2,159.91 |
SNPS Stock Price Forecast 2034
As the world becomes increasingly connected, the demand for advanced semiconductor solutions is expected to continue growing. Synopsys’ strong position in the EDA and IP markets should allow it to benefit from this trend in 2034.
We forecast a 14% increase in stock price for 2034, bringing the average to $1,969.84.
Synopsys’ VCS (Verilog Compiler Simulator) is expected to remain a crucial tool for chip verification in 2034. As designs become more complex, efficient simulation tools will be essential for ensuring chip functionality and performance.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2034 | $1,871.00 | $1,969.84 | $2,462.30 |
SNPS Stock Price Forecast 2035
By 2035, we expect Synopsys to have further expanded its product offerings and market reach. The company’s ongoing investments in research and development should continue to drive innovation and growth.
We project a 15% growth rate for 2035, pushing the average stock price to $2,265.32. As the semiconductor industry continues to evolve, it’s interesting to compare Synopsys’ growth with other tech-related companies. For instance, our Annaly Capital Management (NLY) stock prediction offers insights into the real estate investment trust sector.
The Formality tool for equivalence checking is likely to see increased importance as designers seek to ensure the correctness of their increasingly complex designs. This could be a key factor in Synopsys’ continued success.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2035 | $2,152.00 | $2,265.32 | $2,831.65 |
SNPS Stock Price Forecast 2036
In 2036, Synopsys is likely to benefit from the continued digital transformation across industries. The company’s comprehensive suite of tools for chip design, verification, and software security should remain in high demand.
We forecast a 12% increase in stock price for 2036, bringing the average to $2,537.16.
Synopsys’ Silicon Lifecycle Management solutions are expected to play a crucial role in 2036, as managing the entire lifecycle of semiconductor devices becomes increasingly important for manufacturers.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2036 | $2,410.00 | $2,537.16 | $3,171.45 |
SNPS Stock Price Forecast 2037
As the semiconductor industry continues to evolve, we expect Synopsys to maintain its position as a key player in enabling advanced chip designs and software solutions.
We project a 13% growth rate for 2037, pushing the average stock price to $2,866.99.
The company’s focus on serving the automotive industry is likely to pay off in 2037, as vehicles become increasingly dependent on advanced electronics and software. This could open up new growth opportunities for Synopsys.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2037 | $2,724.00 | $2,866.99 | $3,583.74 |
SNPS Stock Price Forecast 2038
In 2038, we anticipate Synopsys to continue benefiting from the increasing complexity of semiconductor designs and the growing demand for advanced software security solutions.
We forecast a 14% increase in stock price for 2038, bringing the average to $3,268.37.
Synopsys’ expertise in aerospace and defense applications is expected to be a significant growth driver in 2038, as these industries require increasingly sophisticated and secure electronic systems.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2038 | $3,105.00 | $3,268.37 | $4,085.46 |
SNPS Stock Price Forecast 2039
As we approach the end of the 2030s, Synopsys is expected to remain at the forefront of semiconductor design and verification technologies. The company’s ongoing investments in AI-driven tools and cloud solutions should continue to drive growth.
We project a 15% growth rate for 2039, pushing the average stock price to $3,758.63.
The company’s solutions for the Internet of Things (IoT) are likely to see increased demand in 2039, as the number of connected devices continues to grow exponentially. This could provide a significant boost to Synopsys’ revenue.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2039 | $3,571.00 | $3,758.63 | $4,698.29 |
SNPS Stock Price Forecast 2040
By 2040, we expect Synopsys to have further expanded its market reach and product offerings. The company’s strong position in the EDA and semiconductor IP markets should continue to drive growth and innovation.
We forecast a 12% increase in stock price for 2040, bringing the average to $4,209.67. While Synopsys specializes in semiconductor design tools, other tech companies in adjacent sectors are also showing promising long-term potential. For instance, our Fiserv (FI) stock price target offers insights into the future of financial technology and payment processing solutions.
Synopsys’ expertise in mobile and 5G communications is expected to play a crucial role in 2040, as these technologies continue to evolve and expand. This could open up new opportunities for growth and innovation.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2040 | $3,999.00 | $4,209.67 | $5,262.09 |
SNPS Stock Price Forecast 2050
Looking ahead to 2050, we anticipate Synopsys to have maintained its position as a key enabler of technological advancements in the semiconductor and software industries. The company’s long-term focus on innovation and adapting to market needs should continue to drive growth over the decades.
We project the stock price to reach $8,800 by 2050, representing a significant increase from 2024 levels.
Synopsys’ tools and solutions for high-performance computing (HPC) are likely to be in high demand in 2050, as the need for powerful computing resources continues to grow across various industries.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2050 | $8,360.00 | $8,800.00 | $11,000.00 |
Conclusion
Our stock price forecast for Synopsys (NASDAQ: SNPS) from 2024 to 2050 paints a picture of steady and significant growth. We project the stock price to reach $8,800 by 2050, representing a remarkable increase of over 1,700% over 26 years.
This growth is underpinned by Synopsys’ strong position in the electronic design automation (EDA) and semiconductor IP markets, as well as its ongoing investments in innovative technologies such as AI-driven tools and cloud solutions. The company’s diverse product portfolio and its ability to serve critical industries like automotive, aerospace, IoT, and 5G communications provide a solid foundation for long-term growth.
FAQs
1. What is the future of SNPS share price?
Based on our analysis, the future of Synopsys (SNPS) share price appears promising. We project steady growth over the coming decades, with the stock price potentially reaching $8,800 by 2050. This represents a significant increase from the current price of $495.95 as of September 18, 2024. The company’s strong position in the electronic design automation (EDA) and semiconductor IP markets, coupled with its ongoing investments in innovative technologies, are expected to drive this growth.
2. Is SNPS a good long-term stock?
Synopsys (SNPS) appears to be a strong candidate for long-term investment. The company’s diverse product portfolio, which includes essential tools for chip design, verification, IP, and software security solutions, positions it well in the rapidly evolving semiconductor industry. Synopsys serves critical sectors such as automotive, aerospace, IoT, and 5G communications, which are expected to see significant growth in the coming years.
3. What is the SNPS 10 year outlook?
Our 10-year outlook for Synopsys (SNPS) is positive. From 2024 to 2034, we project the stock price to grow from $555.46 to $1,969.84, representing a compound annual growth rate (CAGR) of approximately 13.5%. This growth is expected to be driven by increasing demand for advanced semiconductor designs, expansion of AI and machine learning applications, and the proliferation of IoT and 5G technologies. Synopsys’ ongoing investments in AI-driven tools and cloud solutions are also likely to contribute to its market position and growth over this period.
4. Is SNPS a buy hold or sell?
Based on our analysis of Synopsys’ (SNPS) market position, growth prospects, and projected stock performance, it could be considered a “buy” or “hold” for investors with a long-term perspective. The company’s strong position in the EDA and semiconductor IP markets, combined with its focus on innovation and serving critical industries, suggests potential for continued growth.
5. Who are the major competitors of SNPS?
The major competitors of Synopsys, Inc. (NASDAQ: SNPS) include:
- Cadence Design Systems, Inc. (NASDAQ: CDNS): Cadence provides software, hardware, and IP for system design and verification, similar to Synopsys in EDA tools and services.
- Siemens EDA (formerly Mentor Graphics): A division of Siemens, Siemens EDA offers electronic design automation solutions, directly competing in semiconductor design software.
- Ansys, Inc. (NASDAQ: ANSS): Ansys specializes in engineering simulation software, offering integrated design analysis and verification tools for semiconductor companies.
- Xilinx, Inc. (NASDAQ: XLNX): Xilinx provides programmable logic devices and design tools, playing a role in chip design and verification workflows like Synopsys.
- Arm Holdings (NASDAQ: ARM): Arm develops semiconductor intellectual property and processor designs used in a wide range of devices, competing in the IP market.
- Intel Corporation (NASDAQ: INTC): Intel, a major chip manufacturer, also offers design and verification tools that compete with Synopsys’ solutions for semiconductor companies.
- NVIDIA Corporation (NASDAQ: NVDA): Known for GPUs, NVIDIA also provides chip design and verification tools, entering markets that overlap with Synopsys’ offerings.
- Broadcom Inc. (NASDAQ: AVGO): Broadcom is a global leader in semiconductor design, and its growing investments in design automation tools challenge Synopsys’ dominance.
- Qualcomm, Inc. (NASDAQ: QCOM): Qualcomm provides chip designs and has been increasing its focus on design automation, directly competing with Synopsys’ EDA tools.
- Texas Instruments, Inc. (NASDAQ: TXN): Texas Instruments designs semiconductors and invests in software tools for chip design, which compete with Synopsys’ EDA offerings.
Disclaimer:
The stock price predictions provided herein are based on historical data, current market trends, and analysis. However, past performance does not guarantee future results. Stock markets are inherently volatile and subject to numerous economic, political, and market factors that can cause rapid and unpredictable fluctuations in stock prices. The information provided is for educational and informational purposes only and should not be construed as financial advice. It is strongly recommended that you consult with a qualified financial advisor before making any investment decisions. Invest responsibly and consider your individual financial situation, risk tolerance, and investment objectives before acting on any information provided.
Source:
