13 Most Promising AI Stocks to Buy Now

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6. Synopsys, Inc. (NASDAQ:SNPS)

Number of Hedge Fund Holders: 67

Synopsys, Inc. (NASDAQ:SNPS) is one of the Most Promising AI Stocks to Buy Now. Goldman Sachs analyst James Schneider initiated coverage of the company’s stock with a “Buy” rating and a price objective of $620, as reported by The Fly. The firm initiated a US digital semiconductor and electronic design automation software group, and is constructive on merchant silicon and EDA vendors tied to AI-associated capital spending. The analyst also highlighted that the AI investment cycle remains in a state of transition. That being said, it can sustain growth from present levels.

Goldman Sachs highlighted that a broadening customer base continues to drive outsized growth in Synopsys, Inc. (NASDAQ:SNPS)’s intellectual property franchise, with physical electronic design automation (EDA) demonstrating a meaningful growth opportunity. Synopsys, Inc. (NASDAQ:SNPS) believes that the mega trends of AI, software-defined systems, and silicon proliferation are driving its growth. The company announced its ongoing close collaboration with Samsung Foundry in order to power the next generation of designs for advanced edge AI, HPC, and AI applications.

Notably, the adoption of Edge AI applications continues to drive the need for advancements in semiconductor technologies to allow complex computational tasks, improve efficiency, and enhance AI capabilities throughout industries and applications.

Synopsys, Inc. (NASDAQ:SNPS) is a critical player in the broader AI landscape because it developed Synopsys.ai, which is a full-stack, AI-driven EDA suite using reinforcement learning and Gen AI. Parnassus Investments, an investment management company, released the Q1 2025 investor letter. Here is what the fund said:

“Synopsys, Inc. (NASDAQ:SNPS), a provider of semiconductor design software, experienced a similar investor reaction as other semiconductor and technology-focused companies during the quarter, as tariffs, inflation and AI concerns weighed on sentiment.

Synopsys is a leader in electronic design automation, operating in a consolidated software market characterized by high switching costs. We believe the company’s acquisition of Ansys, coupled with its extensive intellectual property profile, will enhance its competitive edge as semiconductor design grows more complex, AI accelerators proliferateand non-semiconductor companies develop their own specialized chips.”

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