OpenAI Just Sends This Tech Stock Soaring

Deutsche Bank raised its price target for Synopsys (SNPS) to $640 from $590 after the company announced multiyear deals with Amazon and OpenAI. The partnerships are expected to boost revenue growth and innovation in AI-driven chip design. Synopsys's fiscal 2027 guidance includes 15% revenue growth to $11.15 billion, with an adjusted operating margin of 44% and adjusted EPS near $19.08. Deutsche Bank also revised its longer-term revenue forecast to $15.87 billion by fiscal 2030.

Deutsche Bank increased its price target for Synopsys (SNPS) to $640 from $590. The move follows Synopsys' partnerships with Amazon and OpenAI, and its guidance of 15% revenue growth for fiscal 2027. SNPS shares rose 5% in premarket trading, building on Wednesday's gains.

Synopsys stock rose 2.5% pre-market after announcing a $1B+ AWS deal for silicon IP and software, a multi-year OpenAI partnership for AI chip design, a $1B share buyback, and raised FY2027 revenue guidance to $11.15B (15% YoY growth).

Synopsys (SNPS) shares rose 2.5% premarket after announcing a $1B+ AWS deal, an OpenAI partnership, a $1B share buyback, and raising fiscal 2027 revenue guidance to $11.15B, up from $10.8B consensus. AWS will license Synopsys' IP and software for custom chips, with revenue tied to production volumes.

Keybanc maintained an Overweight rating on Synopsys with a $605 price target, implying a 39.1% upside from the Sep 30 close. The firm cited strong long-term growth projections, strategic partnerships, and innovation as key reasons for its optimism.

Rosenblatt maintained a Buy rating on Synopsys with a $620 price target, implying a 42.5% upside from the Sep 30 close of $434.94. The firm cites strong growth prospects in the EDA segment, strategic partnerships, and a competitive edge in the semiconductor market.