Price Prediction: Synopsys Will Trade at This Price in 2027

By Vandita Jadeja Published May 29, 1:03PM EDT

Quick Read

SNPS beat Q2 estimates with 42% revenue growth yet dropped 8%, punished by investors for a 6% decline in Design IP revenue.
Our model projects $604 by May 2027 with 90% confidence, outpacing Wall Street's $545 consensus target anchored to messy GAAP optics.
Jesse Cohn's Elliott Management board seat supports the margin improvement case, but a structural hyperscaler pivot away from licensed IP remains the primary downside risk.
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Synopsys (NASDAQ:SNPS | SNPS Price Prediction) runs the software that designs the world’s most advanced chips. With AI workloads exploding and the $35 billion Ansys acquisition now fully integrated, this is arguably the most strategically positioned EDA franchise on the market.

Yet shares of Synopsys are up just 2.32% year to date, trading at $480.64. So can SNPS hit $700 by 2027? That is the question I want to answer.

What’s Holding Synopsys Back Right Now

The honest answer: investors punished a beat-and-raise quarter. Shares fell 7% to 8.4% after Q2 FY2026 results despite revenue of $2.276 billion (up 42.0% YoY) and non-GAAP EPS of $3.35 beating the $3.1617 estimate. The market focused on Design IP weakness, where revenue fell 6% YoY as hyperscalers built proprietary IP.

GAAP net income collapsed to $17.1 million, crushed by $403.6 million in Ansys intangibles amortization. Shares are down 4.63% over the past week and 0.67% over the past month. With a beta of 1.245, drawdowns hit hard.

Wall Street Sees 13% Upside. Our Model Says More.

The Street consensus target sits at $544.99, with 2 Strong Buy, 15 Buy, 7 Hold, 0 Sell, and 1 Strong Sell ratings. Our base case for May 2027 is $604.09, implying 25.68% upside, with a bull case of $680.80 and a bear case of $524.43.

Confidence on the base case is 90%, which I read as high conviction. My pushback on consensus is simple. Analysts are anchoring on the messy GAAP optics. With 68% bullish ratings already, the bar to expand multiples is lower than the Street is pricing.

The Path to $700 Per Share

Reaching $700 from today’s price of $480.64 would require a gain of 45.6%. With forward EPS of $14.82, a price of $700 implies a forward P/E of 47x. Our base case of $604.09 already implies 36x, meaning the bold target requires 11x of additional multiple expansion.

That is a stretch. But the conditions for compression rather than expansion are quietly building. CEO Sassine Ghazi told investors, “AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power, driving demand across our portfolio.”

Citigroup just raised its target to $610 and Rosenblatt to $575. Add Elliott Management’s board seat for Jesse Cohn, which validates a margin improvement thesis. The primary risk: a prolonged Design IP decline that drags the growth narrative back down.

The Valuation Case for Synopsys Right Now

At $480.64 against forward EPS of $14.82, SNPS trades at roughly 32x forward earnings. That looks expensive next to the broader market but cheap versus where EDA peers trade when revenue compounds at 40%-plus. Shares sit between the 52-week high of $651.73 and low of $376.18, with a 10-year return of 828.77%. That kind of long-term compounding is the bull case in one statistic.

Is $700 Realistic? Here’s My Take

$700 by 2027 is a stretch. It demands 45.6% upside and 11.4x of additional multiple expansion above our base case.

Three things need to break right: Ansys synergies must flow through to GAAP margins, Design IP needs to stabilize, and China revenue has to recover in H2. Elliott’s activist pressure helps the margin story.

What derails it is a structural hyperscaler pivot away from licensed IP. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Synopsys could reach $700 in 2027.

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About the Author Vandita Jadeja →

Vandita Jadeja is a financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis. She has contributed to several publications, including the Joy Wallet, Benzinga, The Motley Fool and InvestorPlace.