Is Synopsys (SNPS) Still a Buy? Brutally Honest Analysis

Let’s cut through the noise. You’re not here for hype — you’re here because you want to know if Synopsys (NASDAQ: SNPS) is still worth your money. You’ve seen the 5-year run. You’ve heard about the Ansys deal. Now you’re wondering: is it too late to jump in, or is there still gas in the tank?

Here’s the no-bullshit breakdown.

Current Snapshot: What’s the Damage?

As of August 7, 2025, Synopsys is trading at $625.88. That’s about 5% off its all-time high of $651.73 from literally last week. So no, this isn’t some forgotten value stock you can scoop up for cheap. It’s riding high.

Bottom line? This is a premium-priced, high-growth stock. You’re not buying it for the discount. You’re buying it for the runway.

The Performance? Ridiculous (In a Good Way)

Let’s talk returns. From $142.87 in early 2020 to over $625 today. That’s a 331% total return over 5.5 years. A CAGR of 30.47%. Most funds would kill for that. And it’s not just one good year — it’s consistent dominance (except 2022, which we’ll forgive… barely).

Year-by-Year Snapshot:

It’s volatile. Annualized volatility ~37%. If you can’t handle that, go buy some bonds. But if you want upside, this thing delivers.

Money Talks: Financials That Actually Impress

Synopsys isn’t just growing for show. They’ve got the revenue and income to prove it.

Q2 FY2025:

• Revenue: $1.604B (up from $1.455B YOY)
• Non-GAAP EPS: $3.67 (beat expectations)
• GAAP EPS: $2.24

FY2024 Highlights:

• Total Revenue: $6.127B (+15.2%)
• Net Income: $2.26B (+84.0%)
• Recurring Revenue: 85% — beautiful.

Oh Yeah — They Bought Ansys for $35 Billion

The big headline: Synopsys just bought Ansys. That’s not a tuck-in acquisition. That’s a power move. It extends their turf beyond chip design into simulation, system-level design, and a fat new TAM of $31B.

Think AI, aerospace, automotive. Basically, where the future is going. The Ansys acquisition gets them there first — or at least faster than Cadence.

Yes, there are integration risks. But if they pull it off? Total game changer.

AI + EDA = Future-Proof

If you’re not paying attention to AI in chip design, you’re missing the plot. Synopsys’ DSO.ai isn’t just marketing fluff — it’s real-deal productivity juice. Faster design cycles. Better chips. Less human effort.

This isn’t speculative. It’s happening. Customers are using it — and they’re not going back.

Analysts Are Basically Swooning

Strong buy ratings across the board. Recent price targets hover between $620–$700.

Translation: nobody’s bailing. And they’re not calling it overvalued either.

The Moat Is Real — And Massive

This is a duopoly, folks. Synopsys and Cadence dominate EDA like Coke and Pepsi — and Synopsys is the bigger one.

• Synopsys: 50%+ share
• Cadence: ~45%
• Siemens: trailing way behind

Switching costs? High. IP library? Huge. Brand loyalty? Locked in. You don’t just “try” Synopsys. You commit.

No Dividends, No Problem

Synopsys doesn’t pay dividends. But here’s what they do with their cash:

• Massive R&D
• Strategic acquisitions (Ansys, duh)
• Stock buybacks

If you want income, look elsewhere. If you want compound growth, stay right here.

The Real Risks

None of these are fatal. But ignore them, and you’ll get burned.

But the Upside?

If you believe in AI, semiconductors, cloud-based design, and engineering automation, then Synopsys is a no-brainer. The Ansys deal expands its playground. AI gives it an edge. And long-term trends are in its favor.

So, Should You Buy?

If you want boring, go buy utilities.
If you want upside with brains and scale? Synopsys is calling.

Reasonable price target? $620–$650.

This isn’t a moonshot. This is an empire quietly eating the semiconductor world. If you want to be there as it happens, now’s your time.