5 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds

4. Synopsys, Inc. (NASDAQ:SNPS)

Number of Hedge Fund Holders: 84

Synopsys makes the advanced software necessary for designing and testing high-bandwidth memory-heavy AI chips. Analyst sentiment continues to stay positive on the stock. On May 28, Citi raised the firm’s target price on Synopsys Inc. (NASDAQ:SNPS) from $600 to $610 and reiterated a Buy rating on the stock. This reflects 31% upside from current levels. The upward price target revision came after the company announced its Q2 2026 earnings report.

Synopsys Inc. (NASDAQ:SNPS) released its second-quarter earnings on May 27, reporting revenue of $2.28 billion, which comfortably beat the Wall Street consensus of $2.25 billion. The earnings per share came in at $3.35, exceeding the estimate of $3.15 by 6.35%.

For the full year 2026, the company raised its revenue to $9.665 billion at the midpoint. This translates to an EPS of $14.53. AI-driven demand is expected to fuel this growth across design automation and IP segments. Despite these positive results, Synopsys’ stock declined, reflecting mixed investor sentiment.

On a positive note, Synopsys announced improvements to its chip design tools, pre-validated IP, and AI-powered software that work with TSMC’s latest manufacturing technologies. These upgrades will help chipmakers bring next-generation AI and high-performance computing chips to market faster.

Michael Buehler-Garcia, Senior Vice President at Synopsys, highlighted,

TSMC’s most advanced process and packaging technologies are opening new frontiers for performance, bandwidth, and energy efficiency in AI and autonomous systems. Through our deep collaboration, Synopsys is delivering AI-driven design flows, advanced multiphysics signoff, and a comprehensive portfolio of proven interface and foundation IP that help customers accelerate innovation and achieve outstanding quality of results.

Founded in 1986, Synopsys, Inc. (NASDAQ:SNPS) is a provider of design intellectual property (IP) solutions. The company operates through the Design IP and Design Automation. It provides Digital and Custom IC Design solutions,  Verification solutions, FPGA design products, and AI-driven EDA solutions.

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