10 Best AI Chip Stocks to Buy According to Hedge Funds

7. Synopsys Inc. (NASDAQ:SNPS)

Synopsys Inc. (NASDAQ:SNPS) is one of the 10 best AI chip stocks to buy according to hedge funds.

On March 4, Lee Simpson from Morgan Stanley maintained a price target of $480 for Synopsys Inc. (NASDAQ:SNPS) while reiterating an Equal Weight rating on the stock. This leads to a potential upside of more than 21% at the current level.

The analyst highlighted that the fiscal year 2026 marks the first full year of business as a combined Synopsys-Ansys entity. The integration of Ansys helps the company achieve the cost synergy target of $400 million, earlier than the expected three-year timeframe.

Earlier on March 2, Synopsys Inc. (NASDAQ: SNPS) executed an accelerated share repurchase agreement with The Bank of Nova Scotia to repurchase its stock worth $250 million. According to the terms of the agreement, Synopsys will initially receive about 513,000 shares.

All other outstanding shares will be settled by the end of 1st June. The total number of repurchased shares is expected to be determined based on the average daily volume-weighted share price of the company.

Synopsys Inc. (NASDAQ:SNPS) develops intellectual property solutions and electronic design automation tools for the semiconductor and electronics industries. Digital integrated circuit designs and hardware verification systems account for a large share of the company’s revenue. It also oversees silicon prototyping for components of pre-verified intellectual property.