HSBC downgrades Synopsys to Hold into ‘transition year’

HSBC downgraded Synopsys (SNPS) to Hold from Buy with a $455 price target The firm sees fiscal 2026 as a “transition year” for Synopsys. The company faces geopolitical and Intel foundry-related uncertainties in its electronic design automation business, which contributed 60%-plus to overall revenue in fiscal 2025, the analyst tells investors in a research note. HSBC adds that revenue growth in the company’s design intellectual property business is expected to be “muted” in 2026 versus the long-term growth guidance of mid-teens as Synopsys tries to pivot its IP portfolio to AI-driven opportunities. The firm cites these “disruptions” and a lack of share near-term catalysts for the downgrade.