Synopsys stock gains 1.03 percent as HSBC lifts target to USD 700

Published on 09/25/2026 at 17:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Synopsys stock drew HSBC's attention as the bank lifted its target from USD 490 to USD 700 on September 25, 2026. Q3 revenue rose 42.4 percent.

Fotorealistisches Chip-Design-Labor mit Ingenieuren, Bildschirmen und Silizium-Wafer — Fotorealistisches Bild zeigt Chip-Design-Labor von Synopsys Inc. (ISIN US8716071076) mit Wafer und Bildschirmen im Halbleiterdesign, Illustration mit AI erstellt.

Synopsys stock (ISIN US8716071076) traded at USD 429.27 on Nasdaq at 11:32 a.m. ET on September 25, 2026, up 1.03 percent from the prior close of USD 424.91. The move followed Investing.com's report that HSBC upgraded the shares to Buy from Hold and raised its target from USD 490 to USD 700 on September 25, 2026.

HSBC raises its valuation bar

The new HSBC target stands 63.0 percent above the Nasdaq price of USD 429.27. The report said the target uses a 35 times multiple on HSBC's fiscal 2027 earnings-per-share estimate of USD 20.01, while the prior framework used 33 times fiscal 2026 earnings.

The upgrade centers on Synopsys's shift toward royalty-based revenue and continued demand for electronic design automation driven by agentic artificial intelligence. Baird also upgraded Synopsys to Outperform from Neutral and raised its target to USD 560, according to the same September 25, 2026 report from Investing.com.

Q3 results support the case

Synopsys reported fiscal third-quarter revenue of USD 2.477 billion for the three months ended July 31, 2026, compared with USD 1.740 billion a year earlier. The increase was 42.4 percent, while GAAP diluted EPS rose to USD 2.84 from USD 1.50.

Non-GAAP diluted EPS reached USD 3.91, up from USD 3.39 in the year-earlier quarter. In its August 26, 2026 release, PR Newswire reported that Synopsys raised fiscal 2026 revenue guidance to USD 9.690 billion to USD 9.740 billion and non-GAAP EPS guidance to USD 15.04 to USD 15.10.

AI partnership adds an operating catalyst

On September 23, 2026, Synopsys and TSMC announced expanded collaboration covering A14 design flows, agentic AI workflows, multi-die designs and advanced semiconductor IP. The Synopsys release also cited A14 certification across digital and analog flows and enablement for TSMC's N2P process.

Stock trades below its yearly high

Synopsys shares traded 20.4 percent below the 52-week high of USD 539.48 and 18.4 percent above the 52-week low of USD 362.55 on September 25, 2026. Market capitalization was USD 82.20 billion and volume was 822,520 shares at 11:32 a.m. ET.