Synopsys (SNPS) Stock Soars 5% on OpenAI and Amazon Deals

TLDR

• Synopsys stock jumped nearly 5% after announcing new partnerships with OpenAI and Amazon.
• The company signed a multi-year, $1 billion-plus deal with Amazon for custom silicon and cloud infrastructure work.
• Synopsys and OpenAI are building “GPT-Synopsys,” an AI model for chip design, under a revenue-sharing agreement.
• At its investor day, Synopsys projected fiscal 2027 revenue of $11.15 billion, about 15% growth year over year.
• Wall Street rates SNPS a Strong Buy, with an average price target implying roughly 30% upside.

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Synopsys stock climbed almost 5% on Wednesday. The jump came after the chip design software maker announced two major partnerships in one day.

Synopsys, Inc., SNPS

The first deal is with OpenAI, the company behind ChatGPT. Synopsys and OpenAI are teaming up to build a new AI model called GPT-Synopsys.

This model will use Synopsys’ electronic design automation tools to help with semiconductor design. The two companies will share revenue from the project, though exact terms were not disclosed.

The second deal is with Amazon. It’s a multi-year agreement worth more than $1 billion.

🚨 Synopsys and @OpenAI are partnering to create GPT-Synopsys, a specialized frontier model for AI-native chip design, built using OpenAI’s frontier intelligence with Synopsys’ trusted EDA technology and deep domain expertise. Learn more: https://t.co/nCtxAHfjBM pic.twitter.com/k1MTBLvY5n

— Synopsys (@Synopsys) September 30, 2026

Synopsys says the Amazon partnership will help speed up custom silicon development. It will also support more complex AI products and cloud infrastructure projects.

As part of the deal, Synopsys is adopting Amazon’s cloud storage services. It will also use Amazon’s Bedrock AI platform to build more AI capability into its own tools.

Investor Day Targets

The stock news didn’t stop there. Synopsys held its investor day on Wednesday and laid out fresh financial targets.

The company expects fiscal 2027 revenue of $11.15 billion at the midpoint. That marks about 15% growth compared to the prior year.

Non-GAAP earnings per share are projected between $19.04 and $19.12 for fiscal 2027. Synopsys also expects a non-GAAP operating margin near 44%.

Operating cash flow is forecast at roughly $3.6 billion. Capital spending is expected to come in around $500 million.

Looking further out, Synopsys set a multi-year target through fiscal 2030. The company is aiming for mid-teens revenue growth and a non-GAAP operating margin near 50% by that point.

Buyback and Wall Street View

Synopsys also announced plans to buy back about $1 billion in stock in the coming months. That buyback could represent up to 50% of free cash flow returned to shareholders.

SNPS stock rose more than 1% in after-hours trading following the investor day presentation. That came on top of the near 5% gain already posted during the regular session.

Wall Street still likes the stock going forward. Analysts have assigned a Strong Buy consensus rating based on 16 Buy ratings and one Hold over the past three months.

The average price target among analysts sits at $566.75 per share. That implies about 30% upside from current trading levels.

Synopsys shares have traded between $362.55 and $539.48 over the past 52 weeks. The stock’s market cap stands at roughly $83 billion following Wednesday’s gains.