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Synopsys Inc. ($SNPS) Stock Forecast: Down 8.1% Today

Morpher AI identified a bearish signal. The stock price may continue to fall based on the momentum of the negative news.

What is Synopsys Inc.?

Synopsys (SNPS) operates in the electronic design automation (EDA) software and services sector, primarily serving the semiconductor industry. The company's fortunes are closely linked to the performance of the technology sector and semiconductor industry.

Why is Synopsys Inc. going down?

SNPS stock is down 8.1% on May 29, 2025 16:40

  • SNPS posted robust Q2 earnings and revenue figures that surpassed expectations, despite this strong performance, its stock faced a downward trajectory.
  • The decline in SNPS stock may be attributed to negative market sentiment towards chip software companies, driven by escalating U.S.-China tech tensions and new export restrictions affecting firms like Synopsys.
  • The suspension of sales in China and rising hostilities between the U.S. and China may have unsettled investors, leading to the stock's decline.
  • While Synopsys' positive financial results were a notable aspect, broader concerns relating to tech export controls and geopolitical uncertainties likely dominated investor sentiment, causing the dip in SNPS stock.

SNPS Price Chart

SNPS Technical Analysis

SNPS News

Synopsys Stock Gains 4% as Q2 Earnings and Revenues Beat Estimates

SNPS' Q2 top-line reflects strength in EDA and other segments, while efficient cost management aids earnings growth.

https://www.zacks.com/stock/news/2478806/synopsys-stock-gains-4-as-q2-earnings-and-revenues-beat-estimates

0 Missing News Article Image Synopsys Stock Gains 4% as Q2 Earnings and Revenues Beat Estimates

Synopsys Delivers Earnings Win As US Tech Export Curbs Loom Over Industry - Synopsys ( NASDAQ:SNPS )

Synopsys reported strong Q2 2025 results, with revenue of $1.60 billion and adjusted EPS of $3.67, both beating estimates. The company raised its full-year 2025 adjusted EPS guidance while reaffirming its revenue outlook.

https://www.benzinga.com/news/earnings/25/05/45668888/synopsys-delivers-earnings-win-as-us-tech-export-curbs-loom-over-industry

1 News Article Image Synopsys Delivers Earnings Win As US Tech Export Curbs Loom Over Industry - Synopsys  ( NASDAQ:SNPS )

US Escalates Tech War With China, New Export Curbs To Hit Cadence, Synopsys As EDA Software, Chemicals And Tools Face License Requirements: Report - NVIDIA ( NASDAQ:NVDA ) , Cadence Design Systems ( NASDAQ:CDNS )

The United States has imposed new export restrictions on China, requiring licenses for semiconductor design software, chemicals, and other critical materials as tensions escalate between the world's two largest economies.

https://www.benzinga.com/markets/equities/25/05/45663228/us-escalates-tech-war-with-china-new-export-curbs-hit-cadence-synopsys-as-eda-software-chemicals

2 News Article Image US Escalates Tech War With China, New Export Curbs To Hit Cadence, Synopsys As EDA Software, Chemicals And Tools Face License Requirements: Report - NVIDIA  ( NASDAQ:NVDA ) , Cadence Design Systems  ( NASDAQ:CDNS )

Synopsys ( SNPS ) Tops Q2 Earnings and Revenue Estimates

Synopsys (SNPS) delivered earnings and revenue surprises of 8.26% and 0.16%, respectively, for the quarter ended April 2025. Do the numbers hold clues to what lies ahead for the stock?

https://www.zacks.com/stock/news/2478535/synopsys-snps-tops-q2-earnings-and-revenue-estimates

3 Missing News Article Image Synopsys  ( SNPS )  Tops Q2 Earnings and Revenue Estimates

Chip software stocks sink on report Trump ordered halt to China sales

The instructions come after the U.S. Commerce Department warned companies about using artificial intelligence chips from China's Huawei.

https://www.cnbc.com/2025/05/28/chip-software-trump-china.html

4 Missing News Article Image Chip software stocks sink on report Trump ordered halt to China sales

Synopsys Inc. Price History

15.10.2024 - SNPS Stock was down 5.3%

  • Unusual bearish options activity indicates that deep-pocketed investors have a negative outlook on Synopsys, reflecting a lack of confidence in the stock's performance.
  • The high P/E multiple of 37.76X, along with concerns about slowing growth and increased competition, are likely contributing to the bearish movement in Synopsys stock.
  • Despite the broader market gains, Synopsys stock saw a notable -0.94% decline, highlighting investors' apprehensions and potential profit-taking amid the negative outlook on the company's future prospects.

04.02.2025 - SNPS Stock was down 5.2%

  • Despite surpassing earnings estimates and demonstrating strong demand for AI-driven chip design, the stock encountered significant bearish activity.
  • Investors in options trading took a pessimistic approach, noted by a decline in Design IP revenues, potentially impacting SNPS stock negatively.
  • Valuation pressures and macroeconomic uncertainties may have contributed to the bearish trend, overshadowing the company's solid fundamentals and positive future projections.

28.04.2025 - SNPS Stock was down 6.3%

  • The bearish movement in SNPS stock today could be attributed to investors' concerns about the company's upcoming Q2 earnings report.
  • Investors seem to be focusing on more than just revenue and EPS figures, which could reflect uncertainties or mixed expectations about other key metrics.
  • The market's response to the upcoming earnings report may be leading to a sell-off of SNPS shares as investors adjust their positions based on the company's potential performance.
  • This bearish movement may also be influenced by profit-taking as traders lock in gains following a recent increase in the stock price, possibly in anticipation of the earnings announcement.

03.03.2025 - SNPS Stock was down 6.4%

  • The bearish movement in SNPS stock today might be due to profit-taking after a recent bullish run.
  • Despite Wall Street analysts' positive outlook on SNPS, the stock could be facing a short-term pullback.
  • The focus on acquisitions by competitor Cadence (CDNS) might be pressuring SNPS stock as investors analyze the competitive landscape.
  • Mixed signals from the options market, with some investors showing bullish sentiment towards SNPS, could be contributing to the stock price volatility.

23.03.2025 - SNPS Stock was up 6.0%

  • Despite a slight drop in the current session, there was an overall bullish movement for Synopsys Inc.
  • The recent decline in the stock price over the past month and year may have attracted value investors interested in the company's price-to-earnings ratio.
  • Investors show optimism about Synopsys' future prospects, possibly due to strong financial performance or positive industry trends.
  • The bullish movement could also be attributed to market speculation or anticipated product launches or partnerships by Synopsys.

05.11.2024 - SNPS Stock was down 6.3%

  • Despite outperforming revenue and EPS expectations, the stock faced a downturn, potentially linked to the company's conservative guidance.
  • The market's response to the reserved outlook may have overshadowed the positive earnings results.
  • Noteworthy activity from well-capitalized investors in the options market could indicate optimism towards the stock over the long term, despite recent bearish movements.
  • External factors such as overall market conditions and industry trends might also influence the stock's performance and investor sentiment.

05.11.2024 - SNPS Stock was down 10.8%

  • Despite surpassing revenue and earnings expectations in Q4, Synopsys (SNPS) encountered a significant 7% decrease in its stock price because of weak future guidance.
  • The market's negative response to Synopsys's weak guidance suggests concerns about its future growth.
  • Bullish sentiment in the options market towards Synopsys implies that despite short-term fluctuations, long-term investors retain optimism about the company's outlook.
  • Emphasis on advanced technology innovations and robust solutions in IP, designs, and security may be influencing investor sentiment, counterbalancing the short-term stock price decline.

04.03.2025 - SNPS Stock was down 5.3%

  • Over the past month, Synopsys has observed a 7% decline, yet its AI advancements and robust network of partners suggest its stocks are worthwhile for long-term holding.
  • Industry experts express positivity towards SNPS, recommending investment in the company.
  • The growth strategy of Cadence (CDNS) through acquisitions may have had an indirect effect on SNPS today, with investor attention shifting towards potential competitors.
  • Various market sentiments and broader economic conditions likely contributed to the bearish performance of SNPS in today's trading.

19.01.2025 - SNPS Stock was down 5.1%

  • SNPS experienced a strong bearish movement, closing at $522.53, down -1.09% from the previous day.
  • The bearish trend could be attributed to the notable bearish moves made by financial giants in the options market, with 54% of traders showing bearish tendencies.
  • This negative sentiment from institutional investors might have influenced the broader market perception of Synopsys, leading to the more significant decline compared to the overall market.
  • Investors should closely monitor any further developments in the options market and institutional trading activity to gauge the future direction of SNPS.

08.03.2025 - SNPS Stock was up 5.5%

  • In contrast to a recent 7% decline in the stock price within the last month, Synopsys (SNPS) displayed resilience today through a notable bullish surge.
  • The market's favorable response to Synopsys' AI advancements and strong network of partners, recognized as core strengths in the face of larger economic and regulatory obstacles, likely contributed to this positive momentum.
  • Cautionary remarks from analysts regarding the potential downsides for chip stocks, including Synopsys, linked to demand uncertainties stemming from escalating product costs appeared to have no immediate effect on SNPS today.
  • Investor confidence in Synopsys' future growth opportunities may have propelled the bullish trend, despite prevailing apprehensions within the broader market landscape.

29.04.2025 - SNPS Stock was down 8.1%

  • SNPS posted robust Q2 earnings and revenue figures that surpassed expectations, despite this strong performance, its stock faced a downward trajectory.
  • The decline in SNPS stock may be attributed to negative market sentiment towards chip software companies, driven by escalating U.S.-China tech tensions and new export restrictions affecting firms like Synopsys.
  • The suspension of sales in China and rising hostilities between the U.S. and China may have unsettled investors, leading to the stock's decline.
  • While Synopsys' positive financial results were a notable aspect, broader concerns relating to tech export controls and geopolitical uncertainties likely dominated investor sentiment, causing the dip in SNPS stock.

29.04.2025 - SNPS Stock was down 7.0%

  • Synopsys (SNPS) experienced a bearish movement today amidst the broader market trend.
  • The US imposing new export restrictions on China, particularly in semiconductor design software, has negatively impacted companies like Synopsys.
  • Actions related to sales in the chip software industry have added further pressure on Synopsys and its peers.
  • Despite beating Q2 earnings and revenue estimates, the market sentiment towards Synopsys has been overshadowed by geopolitical tensions and regulatory challenges, leading to the bearish movement in its stock price.
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Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.