SNPS crashed ~35% in a day after earnings, its one of its worst sell-offs. Earnings/revenue missed (EPS $3.39 vs $3.80 est, rev $1.74B vs $1.77B est), IP sales fell ~8% from export rules and customer issues, and guidance got cut. That’s why we saw the panic.
But here’s the thing: even after the cut, full-year EPS is still $12.8. At today’s price, SNPS trades around 34–36× P/E, near its 3-yr average (~38×). For a company dominating chip design + AI software, that doesn’t look expensive.
Analysts trimmed targets but still see $525–$600+ ahead. Long term, demand for chips and AI tools isn’t slowing and Synopsys is in the middle of it.
Right now, I see $420 as strong support, but even here the upside back toward $500+ looks bigger than the downside~~
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