Key Points
Synopsys, Inc. (SNPS) delivered a strong session, with shares advancing from a previous close of $418.01 to $437.45, gaining 4.65% on the day. The move added $19.44 to the stock price and came on above-average volume, signaling firm demand and robust participation from buyers. Trading activity skewed decisively to the upside throughout the session, reflecting growing investor confidence and a constructive shift in sentiment.
Momentum built steadily as the day progressed, with buyers stepping in early and maintaining pressure, helping the stock sustain its gains into the close. The positive tone stood out as a strong follow-through after recent consolidation, suggesting investors see improving fundamentals and a favorable setup. The day’s performance also narrowed the gap to intermediate resistance levels, a supportive development for traders watching price action for confirmation of trend.
Even after today’s rise, SNPS remains 33% below its 52-week high of $651.73, leaving room for recovery should favorable conditions persist. The combination of solid price appreciation, expanding volume, and improving breadth points to bullish activity building underneath the surface. For investors, the session reads as a constructive step in reestablishing an upward trajectory, with the magnitude of the gain and the quality of participation both underscoring positive momentum. With sentiment turning more supportive and liquidity flowing into the name, the price action suggests improving odds that SNPS can continue carving out a stronger base from current levels.
Why Synopsys, Inc. Price is Moving Higher
Synopsys’ strong move to $437.45 is anchored by a clear and material catalyst: Nvidia’s $2 billion equity investment at $414.79 per share and an expanded strategic partnership aimed at accelerating AI chip design collaboration. The announcement sparked investor enthusiasm, with SNPS surging roughly 8% intraday on Dec. 1, 2025, touching $449.94 in early trading, a jump of $31.93 from Friday’s $418.01 close. The vote of confidence from Nvidia, a leader in accelerated computing, validates Synopsys’ central role in enabling AI-era semiconductor design, a theme investors view favorably.
Volume reinforced the bullish momentum, with 3,791,955 shares changing hands versus a 90-day average of 2,491,822, indicating accumulation by institutions and active traders. At a market cap of $77.64 billion and trailing EPS of $12.75, the stock screens as a high-quality, profitable platform business leveraged to secular growth. The market is also weighing valuation in the context of this partnership: trailing and forward multiples highlighted around the news (56.49 and 28.25, respectively) suggest investors see durable earnings power as AI design complexity rises and workloads shift toward Synopsys’ tools and IP.
Positioned 33% below its 52-week high of $651.73, SNPS offers a perceived discount to peak levels, which, alongside the Nvidia partnership, can be viewed as a constructive setup. The expanded collaboration supports long-run revenue visibility through deeper integration across design, verification, and accelerated computing workflows. Together, the strategic investment, outsized volume, and strengthening sentiment point to a positive repricing as the market anticipates higher growth and operating leverage over time.
What is the Synopsys, Inc. Rating - Should I Buy?
Weiss Ratings assigns SNPS a C rating. Current recommendation is Hold.
The rating is built on five indices: the Fair Growth Index indicates steady but not standout expansion; the Good Efficiency Index reflects solid returns on invested capital and disciplined operations; the Excellent Solvency Index highlights a strong balance sheet and healthy liquidity; the Weak Total Return Index underscores underperformance versus alternatives; and the Fair Volatility Index points to average risk relative to potential reward.
Supporting evidence helps explain the mix. Revenue growth of 14.03% shows a healthy top-line cadence, while a 31.04% profit margin underscores strong pricing power and operating discipline. A 32.78 P/E ratio places valuation in a premium-but-supported range for a category leader, and a 6.50% ROE suggests room for further efficiency gains as cash generation and capital allocation continue to improve.
Against sector peers such as NVDA (B), AAPL (B), and MSFT (B), the contrast is instructive. These higher-rated names generally exhibit stronger risk-adjusted total returns and, in many periods, faster growth or more consistent capital efficiency. That relative outperformance keeps them ahead in our framework while SNPS consolidates.
Overall, SNPS earns a Hold because strengths in efficiency and solvency are offset by only fair growth and a weak total return profile on a risk-adjusted basis. The C rating captures balanced prospects with room to improve if execution converts growth into superior, sustained total returns without materially increasing risk.
About Synopsys, Inc.
Synopsys, Inc. is a leading provider of electronic design automation software, semiconductor intellectual property, and software integrity solutions. Operating within the Information Technology sector and the Software and Services industry, the company delivers end-to-end tools that power the design, verification, and manufacturing signoff of complex chips used across computing, automotive, communications, and consumer applications.
Its electronic design automation portfolio spans logic synthesis, place-and-route, physical verification, timing signoff, and power analysis, enabling customers to optimize performance, power, and area at advanced process nodes. Flagship platforms integrate design and verification flows to accelerate time-to-market, including solutions for simulation, formal verification, emulation, prototyping, and hardware-assisted verification that help teams validate increasingly large and complex systems-on-chip.
Synopsys also offers a broad catalog of silicon-proven IP, covering interface standards such as PCI Express, USB, Ethernet, DDR, MIPI, and HDMI, as well as foundation IP like standard cells, memory compilers, and embedded memories. Security, safety, and AI-optimized IP further enhance customer designs and support stringent reliability requirements in automotive and data center markets. Foundry and ecosystem partnerships ensure tight alignment to leading-edge processes.
Beyond silicon design, the company’s Software Integrity offerings provide application security testing, software composition analysis, and developer-focused tools that help organizations build secure, high-quality software at scale. With deep domain expertise, comprehensive toolchains, and a reputation for accuracy and performance, Synopsys maintains a strong competitive position as a mission-critical provider to semiconductor and systems companies worldwide.
Investor Outlook
Today’s strength highlights improving sentiment and a favorable setup for SNPS as strategic catalysts and heavy volume support the move. With a Weiss Ratings C (Hold), the balance of opportunity and risk remains reasonable as management executes and partnerships deepen.
See full rankings of all C-rated Information Technology stocks inside the Weiss Stock Screener.