Analyst upgrades SNPS on expected recovery in intellectual property demand and Intel’s 18A-P node progress.
Piper Sandler upgraded Synopsys (NASDAQ:SNPS) to Overweight from Neutral and raised its price target to $550 from $450. The move reflects expectations of a faster recovery in Synopsys’ intellectual property business, driven by improving prospects for Intel’s 18A-P manufacturing node.
The upgrade follows a prior settlement with Elliott Investment Management, which added a board member and expanded Synopsys’ board to 11. Elliott had pushed for stronger margins and financial execution after accumulating a multibillion-dollar stake in the company.
Synopsys, a chip design software provider, serves Intel as its largest customer. The firm operates through Design Automation and Design IP segments, with growing demand tied to AI investment and semiconductor complexity.