Bank of America Calls Synopsys (SNPS) a Lower-Beta AI Play With Catch-Up Potential

“We judge the comparative derisking of China and Intel income on with beardown maturation astatine Ansys clears the decks for Synopsys to supply charismatic banal catch-up imaginable and EPS beats for the adjacent year.”

According to analysts led by Vivek Arya, the company’s non-GAAP EPS guidance for the afloat fiscal twelvemonth 2026, astatine $14.36 midpoint, is good up of statement ($14.11). The squad raised its fiscal twelvemonth 2026/2027 non-GAAP EPS estimates to $ 14.37 and $17, respectively.

“While the banal could consolidate astatine current-levels aft the ~20% caller run, we judge it provides an charismatic lower-beta, AI-levered/adjacent campaigner with recurring income tied to much resilient spot plan R & D spending.”

Synopsys, Inc. (NASDAQ:SNPS) is simply a exertion institution that provides bundle and services for silicon-to-systems design, including physics plan automation (EDA) tools, silicon IP, and strategy verification and validation.

While we admit the imaginable of SNPS arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 12 Must-Watch AI Stocks connected Wall Street and 11 AI Stocks Analysts Are Watching Closely.

Disclosure: None.