Key insights
- Piper Sandler reiterated a Neutral rating on Synopsys (SNPS) following reports of Apple exploring chip manufacturing partnerships with Intel and Samsung. While exploratory, a partnership with Intel could positively impact Synopsys' IP-related revenue. Investors should monitor Apple's chip production plans for future developments. Synopsys' recent advancements in TSMC's CoWoS technology and the launch of Ansys 2026 R1 are also noteworthy.
Investing.com - Piper Sandler reiterated a Neutral rating and $430.00 price target on Synopsys (NASDAQ:SNPS) shares following reports of potential shifts in Apple’s chip manufacturing strategy.
Bloomberg reported that Apple has held exploratory discussions with Intel and Samsung to potentially produce Apple’s main line processors on U.S. fabs. The move would represent a divergence from Apple’s decade-long partnership with TSMC on the company’s first-party silicon.
Piper Sandler noted that current reporting does not indicate any design decisions have been made and the talks remain strictly exploratory. The firm said Apple’s decision to partner with Intel would likely be a meaningful, positive catalyst for IP-related revenue at Synopsys.The software company, with a market capitalization of $96.3 billion, has demonstrated strong momentum with revenue growth of 32% over the last twelve months. According to InvestingPro data, Synopsys currently appears overvalued relative to its Fair Value, though the company maintains impressive gross profit margins of 82%. For deeper insights, investors can access a comprehensive Pro Research Report on Synopsys, one of 1,400+ available reports transforming complex data into actionable intelligence.
Synopsys provides intellectual property and design tools used in semiconductor manufacturing. A shift in Apple’s manufacturing partnerships could affect demand for such services.
Piper Sandler recommended investors monitor for any future announcements regarding Apple’s chip production plans.
In other recent news, Synopsys Inc. announced the completion of silicon bring-up for M-PHY v6.0 IP on TSMC’s N2P process and the tape-out of 64G UCIe IP. The company also reported advancements in productivity for TSMC’s CoWoS technology through its 3DIC Compiler platform. Additionally, Synopsys launched Ansys 2026 R1, which integrates AI-powered features and connects VC Functional Safety Manager with Ansys medini analyze software for safety applications in automotive and aerospace. This release follows the company’s recent acquisition of Ansys technology.
At the Synopsys Converge 2026 conference, the company unveiled new chip design tools integrating Ansys technology, including Multiphysics Fusion technology. This combines Ansys simulation engines with Synopsys’ electronic design automation portfolio to address various challenges in chip design. KeyBanc has reiterated an Overweight rating on Synopsys stock with a $600.00 price target, highlighting opportunities in chip design. Reports have emerged of Elliott Investment Management taking a significant stake in Synopsys, aiming to influence management on pricing and margin improvements.
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