Citi’s Price Target On Synopsys (SNPS) Stock Still Carries Considerable Upside

1 day ago 3

Jabran Kundi

Thu, June 11, 2026 astatine 8:32 AM CDT 2 min read

Synopsys, Inc. (NASDAQ:SNPS) is 1 of the 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds. Synopsys makes the precocious bundle indispensable for designing and investigating high-bandwidth memory-heavy AI chips. Analyst sentiment continues to enactment affirmative connected the stock. On May 28, Citi raised the firm's people terms connected Synopsys Inc. (NASDAQ:SNPS) from $600 to $610 and reiterated a Buy standing connected the stock. This reflects 31% upside from existent levels. The upward terms people revision came aft the institution announced its Q2 2026 net report.

Synopsys Inc. (NASDAQ:SNPS) released its second-quarter net connected May 27, reporting gross of $2.28 billion, which comfortably bushed the Wall Street statement of $2.25 billion. The net per stock came successful astatine $3.35, exceeding the estimation of $3.15 by 6.35%.

For the afloat twelvemonth 2026, the institution raised its gross to $9.665 cardinal astatine the midpoint. This translates to an EPS of $14.53. AI-driven request is expected to substance this maturation crossed plan automation and IP segments. Despite these affirmative results, Synopsys' banal declined, reflecting mixed capitalist sentiment.

On a affirmative note, Synopsys announced improvements to its spot plan tools, pre-validated IP, and AI-powered bundle that enactment with TSMC's latest manufacturing technologies. These upgrades volition assistance chipmakers bring next-generation AI and high-performance computing chips to marketplace faster.

Michael Buehler-Garcia, Senior Vice President astatine Synopsys, highlighted,

TSMC's astir precocious process and packaging technologies are opening caller frontiers for performance, bandwidth, and vigor ratio successful AI and autonomous systems. Through our heavy collaboration, Synopsys is delivering AI-driven plan flows, precocious multiphysics signoff, and a broad portfolio of proven interface and instauration IP that assistance customers accelerate innovation and execute outstanding prime of results.

Founded successful 1986, Synopsys, Inc. (NASDAQ:SNPS) is simply a supplier of plan intelligence spot (IP) solutions. The institution operates done the Design IP and Design Automation. It provides Digital and Custom IC Design solutions, Verification solutions, FPGA plan products, and AI-driven EDA solutions.

While we admit the imaginable of SNPS arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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