Synopsys Inc. (NASDAQ:SNPS) grew its share price by 12.78 percent on Thursday to close at $490.54 apiece after unveiling new billion-dollar deals with Amazon and OpenAI, helping bolster its revenue growth outlook for fiscal year 2027.
In separate updates, Synopsys said that it clinched a $1 billion multi-year deal with Amazon to accelerate the development of custom silicon and AI-powered products and cloud infrastructure.
The agreement helped expand the chip design firm’s silicon IP business to serve increasing demand for application-optimized IP, with Amazon serving as its lead customer.
Additionally, the two parties will join forces on applying AI across silicon-to-system engineering workflows, including deploying Synopsys’ AI-powered EDA, physics-based simulation and agentic AI solutions, as well as developing custom agentic AI capabilities to help Amazon’s engineering teams design, analyze, optimize, and validate complex chips and systems more efficiently.
Photo by Tima Miroshnichenko on Pexels
OpenAI Deal
Apart from Amazon, Synopsys Inc. also clinched a multi-year agreement with OpenAI for the development and delivery of the GPT-Synopsys model for chip design that brings together the latter’s frontier AI with the former’s EDA tools and chip design experience.
The agreement includes a revenue-sharing arrangement and go-to-market collaboration to jointly make GPT-Synopsys available to customers worldwide.
Under the deal, engineers will delegate design objectives—from PPA optimization to timing and verification closure—with agents running tools, interpreting results, implementing changes, and iterating toward verified outcomes for engineer review. GPT-Synopsys will run on OpenAI-hosted infrastructure, will be designed to interoperate with customer agent harness systems, and will be deeply integrated with Synopsys.ai and the Synopsys Autopilot, agentic AI platform. Early technology engagements are underway with leading semiconductor customers.
FY27 Growth Even Higher
The deals helped bolster Synopsys Inc.’s revenue growth outlook for fiscal year 2027, with AI said to be the reinforcing growth engine for the company.
For the period, the firm is targeting revenues between $11 billion and $11.2 billion, or an implied increase of 13 percent to 15 percent from the $9.715 billion midpoint target for full fiscal year 2026.
Earnings per share on a non-GAAP basis are projected at $19.04 to $19.12, versus the $15.07 guidance for the year earlier.
“AI is driving unprecedented complexity and increasing demand for the silicon IP and engineering solutions necessary to deliver next-generation AI compute, infrastructure and physical AI systems,” President and CEO Sassine Ghazi said.
Price Target Hike
Several analysts also raised their price targets for the stock following the news.
KeyBanc raised its price target for the stock to $605 from $600 while maintaining an overweight rating, while Deutsche Bank upped its price assessment to $640 from $590, along with a buy call.
Rosenblatt hiked its price target to $620 from $570, while keeping a buy recommendation, while BNP Paribas raised its assessment to $475 from $420, albeit keeping a neutral stance.
Wells Fargo upgraded its price target to $540 from $465, while reaffirming an overweight rating, while StoneX kept a buy recommendation and $570 price target.
Stifel reiterated a $600 target, while Bank of America increased it to $600 from $500. Both issued buy recommendations.
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