Synopsys ($SNPS) Jumps After Earnings Beat Synopsys Inc. (NASDAQ: NASDAQ:SNPS ) delivered another strong quarter after beating Wall Street expectations with Q4 revenue of $2.26B, slightly ahead of estimates. Adjusted EPS came in at $2.90, topping forecasts of $2.78. The semiconductor industry’s AI-driven boom continues to lift demand for Synopsys’ design automation tools, as chipmakers race to build more complex and powerful processors.
The company’s long-standing partnerships with Nvidia, Intel, and Qualcomm are deepening, highlighted by Nvidia’s recent $2 billion investment to accelerate joint AI-centric chip design tools. This reinforces Synopsys’ positioning at the heart of the AI hardware ecosystem. The firm is also reorganizing for efficiency: last month’s 10% workforce reduction aims to free up capital to reinvest in high-growth verticals like AI-driven design and system-level solutions.
Another major boost came from Synopsys’ acquisition of Ansys, finalized in July, which contributed $667.7 million to Q4 revenue. Although the deal faced heavy global antitrust scrutiny, it strengthens Synopsys’ simulation and system modeling capabilities, widening its moat against competitors like Cadence and Siemens. With Q1 revenue guided at $2.36B–$2.42B, the outlook remains solid.
Technical Analysis:
The chart shows SNPS rebounding sharply from a major demand zone around the $380 region, marked by a thick grey support band that has held since 2022. Price has reclaimed the SMA(9) near $422, signaling regained bullish momentum. The recent bounce toward $475 suggests strong buyer interest after an extended downtrend.
The projected path points toward a mid-term bullish structure: a potential pullback near $525, followed by an extension toward the $650–$675 resistance area. MACD is recovering from deeply negative territory, while RSI near 52 confirms improving strength without overbought conditions. As long as price holds above $420, the trend favors upside continuation.
