Despite being a key part of the AI picture, the market hasn't been particularly kind to Synopsys, Inc. (NASDAQ: SNPS ). As you can see in the chart below, the stock has dropped around 15% in theI'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency, & Respect. I alway ...

Core Insights - Synopsys, Inc. (NASDAQ: SNPS) has experienced a stock decline of approximately 15% recently, despite its significant role in the AI sector [1]. Company Performance - The stock performance of Synopsys has been unfavorable, reflecting a broader market trend that has not been kind to the company [1].

SANTA ROSA, Calif.--(BUSINESS WIRE)---- $KEYS--Keysight Technologies, Inc. (NYSE: KEYS), announced the completion of its acquisition of the Optical Solutions Group from Synopsys, Inc. (NASDAQ: SNPS), and PowerArtist from Ansys, Inc. These acquisitions complement and expand Keysight's design engineering software portfolio and computer-aided engineering capabilities, enabling customers to take innovative designs to market faster. The Optical Solutions Group, a leading developer of optical design and analys. ...

Core Insights - Aristotle Capital Management's "Value Equity Strategy" reported a composite return of 4.33% gross of fees in Q3 2025, underperforming the Russell 1000 Value Index (5.33%) and the S&P 500 Index (8.12%) [1] - Synopsys, Inc. (NASDAQ:SNPS) is highlighted as a key stock, experiencing a one-month return of -9.21% and a 52-week decline of 13.63% [2][4] - The acquisition of ANSYS significantly enhances Synopsys' capabilities, expanding its reach from chip-level to system-level design, which supports innovation across various industries [3] Company Overview - Synopsys, Inc. is a global leader in electronic design automation (EDA) software and semiconductor IP, founded in 1986 and headquartered in Mountain View, California [3] - As of October 15, 2025, Synopsys' stock closed at $435.90 per share, with a market capitalization of $80.968 billion [2] Investment Context - Synopsys is not among the 30 most popular stocks among hedge funds, with 66 hedge fund portfolios holding its shares at the end of Q2 2025, a slight decrease from 67 in the previous quarter [4] - Despite its potential, certain AI stocks are considered to offer greater upside potential and less downside risk compared to Synopsys [4]

Core Insights - Bragar Eagel & Squire, P.C. is investigating potential claims against Synopsys, Inc. regarding possible violations of federal securities laws and unlawful business practices [1][2]. Investigation Details - The investigation is focused on whether Synopsys has engaged in any unlawful activities that may have affected its stockholders [2]. - Investors who have suffered losses and are interested in discussing their legal rights are encouraged to contact the law firm [3]. Company Performance - On September 9, 2025, Synopsys reported its financial results for Q3 2025, indicating that its IP business underperformed expectations [6]. - The CEO of Synopsys expressed a more conservative outlook for Q4 while guiding for another year of profitable growth [6]. - Following the announcement, Baird downgraded Synopsys's rating from Outperform to Neutral and reduced its price target from $670 to $535 [6]. - As a result of this news, Synopsys's stock price dropped by $216.59, or 35.84%, closing at $387.78 per share on September 10, 2025 [6].

Core Insights - Synopsys' AI-driven electronic design automation (EDA) tools are experiencing rapid adoption, leading to significant productivity gains for customers [1] - The company has established strong partnerships with various firms, including Advanced Micro Devices and Toshiba, indicating its growing influence in the EDA market [1] - Synopsys' software-based verification tools are increasingly utilized by both traditional semiconductor and emerging system companies, driven by the need for precise verification in advanced nodes [2] Company Developments - The implementation of the ZeBu Server 4 design emulation system by AI-chip developers is enhancing System-on-Chip (SoC) verification processes [3] - Synopsys has expanded its capabilities in the SoC verification and IP space through the acquisition of Intrinsic ID, which enhances security by generating unique identifiers for SoCs [4] - Recent acquisitions, including ANSYS, are expected to create synergies that strengthen Synopsys' EDA offerings [3][4] Competitive Landscape - Synopsys faces competition from EDA vendors like Cadence Design Systems and Siemens, which offer similar tools and services for chip design [5][6] - These competitors focus on different phases of the integrated circuit (IC) design process, potentially increasing competition and impacting Synopsys' pricing and profit margins [6] Financial Performance - Synopsys shares have declined by 8.5% year-to-date, contrasting with a 19.8% growth in the Computer - Software industry [7] - The company's forward price-to-sales ratio stands at 8.58X, slightly above the industry average of 8.55X [9] - Earnings estimates for fiscal 2025 indicate a year-over-year decline of 2.8%, while estimates for 2026 suggest a growth of 9.5% [10]

Synopsys, Inc. (NASDAQ:SNPS) is one of the 11 Best American Semiconductor Stocks to Invest In. On October 10, Synopsys, Inc. (NASDAQ:SNPS) shared that it has received approval from all necessary authorities to move forward with the planned sale of its Optical Solutions Group and PowerArtist businesses to Keysight Technologies. Regulatory authorities required these divestitures as a necessary step as part of Synopsys, Inc.’s (NASDAQ:SNPS) acquisition of Ansys, which was completed on July 17, 2025. Synopsy ...

Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The equity market continued its strong performance in the third quarter of 2025, driven by enthusiasm for generative AI and strength in the semiconductor sector. In the quarter, the focus shifted to positive economic surprises, fiscal policy optimism, and better-than-expected corporate earnings. In the quarter, the strategy returned 3.34 ...

Core Insights - The essence of long-term investment success lies in discipline rather than brilliance, emphasizing the importance of avoiding mistakes over chasing high returns [1][2][7] Investment Philosophy - Successful investing mirrors poker and sports, where avoiding costly errors is crucial; investors should focus on not overpaying for stocks and maintaining a disciplined approach to valuation [3][4][5] - The market rewards those who survive by sidestepping high-risk investments, leading to a cumulative long-term advantage [8] Valuation Concerns - Companies trading at high multiples, such as 40 times earnings or 20 times sales, lack a margin for error, making them vulnerable to downturns when expectations are not met [5] - The Piotroski F-Score serves as a valuable tool for assessing a company's fundamental health, with low scores indicating potential pitfalls similar to struggling sports teams [6][10] Company-Specific Analysis - Synopsys (NASDAQ:SNPS) is highlighted as overvalued, trading at over 45 times forward earnings and 12 times sales, with growth slowing and competitive pressures increasing [9][10] - Snowflake (NYSE:SNOW) is noted for its significant valuation disconnect, trading at over 15 times forward sales despite declining revenue growth and persistent losses [11][12] - Datadog (NASDAQ:DDOG) faces valuation challenges, trading at around 70 times forward earnings, with growth slowing and competition impacting pricing power [12][13]

Fund Performance - Bristlemoon Global Fund returned 5.0% in the September quarter and 5.6% for September 2025, net of fees [1] - Since inception, the fund has produced a cumulative return of 19.3%, net of fees [1] Investment Focus - The fund aims to compound capital at attractive rates over the long term [1] Top Holdings - The fund highlighted Synopsys, Inc. (NASDAQ:SNPS) as a key stock in its third-quarter 2025 investor letter [2] Company Overview: Synopsys, Inc. - Synopsys, Inc. is a leading vendor of electronic design automation (EDA) software tools used for integrated circuit design [3] - The company is the 2 licensor of chip design intellectual property (IP) [3] - EDA tools are critical for chip design across major companies like Nvidia, Analog Devices, Apple, and Alibaba [3] Market Position - The EDA market is characterized as a stable oligopoly, primarily dominated by Synopsys and Cadence Design Systems, with Siemens (formerly Mentor Graphics) in a distant third place [3]