Mizuho Securities analyst Siti Panigrahi has reiterated their bullish stance on SNPS stock, giving a Buy rating today.
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Siti Panigrahi’s rating is based on the strategic partnership between Synopsys and NVIDIA, which is expected to significantly enhance Synopsys’s product offerings by integrating NVIDIA’s advanced computing and AI technologies. This collaboration is anticipated to address key challenges in design and verification processes, leading to substantial performance improvements and time reductions in various computational tasks. The partnership is also seen as a catalyst for expanding Synopsys’s total addressable market, as it allows the company to penetrate broader sectors beyond semiconductors, such as automotive, aerospace, and industrial design.
Siti Panigrahi also highlights NVIDIA’s $2 billion investment in Synopsys, which not only strengthens Synopsys’s financial position but also underscores the potential for attractive risk/reward in its stock. This investment, coupled with the ongoing integration of Ansys and the company’s focus on leveraging AI in electronic design automation, reinforces the positive outlook for Synopsys’s long-term growth. The report maintains an optimistic view on Synopsys’s ability to capitalize on the evolving high-performance computing landscape, positioning it as a critical player in the AI-driven transformation of engineering design.
Panigrahi covers the Technology sector, focusing on stocks such as Oracle, Intuit, and Synopsys. According to TipRanks, Panigrahi has an average return of -1.4% and a 44.98% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $510.00 price target.