Synopsys, Inc. (SNPS) saw a modest increase in its stock price on December 6, 2024, closing at $517.28, up 0.39% from the previous day's close of $515.29. The stock opened at $518.85 and reached a high of $529.80 before settling down, with a significant trading volume of 2,334,137 shares, more than double its average. The uptick in Synopsys' stock can be attributed to the positive momentum in the semiconductor industry, as global chip sales hit a record $56.9 billion in October, marking a 22% y/y increase. Additionally, the semiconductor equipment billings showed a 19% y/y growth in Q3 2024, which likely bolstered investor sentiment towards Synopsys, a key player in semiconductor design automation.
Further supporting the stock's movement, major Wall Street analysts maintained their buy ratings on Synopsys, with price targets ranging from $620 to $690, highlighting the company's favorable position amid increasing chip design complexity and AI design initiations. The recent weakness in Synopsys shares was seen as a buying opportunity, given the company's positive outlook on EBIT margin improvement and stable growth prospects.