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What Makes Synopsys Inc. (SNPS) Appear so Attractive

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.

While we acknowledge the risk and potential of SNPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNPS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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