Needham Raises Synopsys (SNPS) Price Target, Maintains Buy Rating

Synopsys, Inc. (NASDAQ:SNPS) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. Synopsys, Inc. (NASDAQ:SNPS) received a boost on Monday, July 14, after Needham analyst Charles Shi raised the firm’s price target on the stock to $660 from $650, while reiterating a Buy rating. The revision follows the announcement that China has conditionally approved Synopsys’s acquisition of engineering software firm Ansys, a key regulatory hurdle in the deal’s global approval process.

Needham Raises Synopsys (SNPS) Price Target, Maintaining Buy Rating

A close-up of a tech engineer soldering a modern system-on-chip circuit board in a laboratory setting.

According to Needham, the transaction is expected to close around July 17, marking a significant milestone for both companies. The merger brings together Synopsys’s strength in semiconductor design automation with Ansys’s expertise in multiphysics simulation, creating what the firm describes as the definitive chip-to-system design software leader.

Once combined, the companies are projected to generate over $10 billion in total revenue by fiscal year 2026, according to Needham’s estimates. The scale and breadth of the unified platform are expected to unlock long-term synergies, particularly in the areas of AI-driven design, automotive, and industrial markets.

Investors have closely followed the deal since it was first announced, viewing it as a transformative move for Synopsys, Inc. (NASDAQ:SNPS) in a consolidating software landscape. With Chinese regulatory clearance now secured, attention shifts to final closing logistics and early integration plans. Synopsys shares edged higher following the update, reflecting growing confidence in the strategic upside of the Ansys acquisition.

While we acknowledge the potential of SNPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNPS and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Top 10 Healthcare AI Stocks to Buy According to Hedge Funds and 10 Consumer Defensive Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.