Are you ready to take advantage of the growing artificial intelligence sector with your investments? Then you’ll want to pay attention to a chip design stock that is set to benefit from the ongoing AI tailwinds, according to Bank of America.
Synopsys, a leading company in electronic design automation, is positioned for success in the AI space. Analyst Vivek Arya has reiterated his buy rating on the stock, citing the momentum in electronic design automation and the steady ramp up of AI products. With shares of SNPS up 28% over the past year, outperforming the S&P 500, the potential for growth is clear.
At Extreme Investor Network, we believe that Synopsys is well-positioned to capitalize on the increasing complexity in the semiconductor industry driven by AI. As more companies invest in semiconductor spending, Synopsys stands to benefit from a low double-digit growth trajectory through 2025. Additionally, the company’s AI products, such as VSO.ai, provide an additional monetization opportunity with a potential 20% uplift in contracts.
Looking ahead, Arya has set a price target of $650 for Synopsys, implying a 15% upside from current levels. He has also raised revenue estimates for 2025 and 2026, expecting operating profit margins to expand to 40% by the second half of 2025. Furthermore, the recent acquisition of graphics software maker Ansys could unlock a $31 billion total addressable market and $400 million in potential revenue synergies for Synopsys.
With Synopsys at the forefront of the AI and semiconductor industries, now is the time to consider adding this stock to your investment portfolio. Stay ahead of the game with Extreme Investor Network and capitalize on the opportunities presented by the technology sector.