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Photo: Yahoo Finance / Benzinga

Synopsys Stock Rises 8% After $1B AWS Chip Deal

Synopsys2 min read6 sources

Why is Synopsys stock up today?

Synopsys (SNPS) stock rose about 8% to roughly $470 on Thursday after announcing a $1 billion-plus AWS chip-design deal, an OpenAI AI partnership and higher 2027 guidance.

Key numbers

Amazon AWS deal$1B+multi-year, license plus royalty
FY2027 revenue guidance$11.15B~15% growth vs 11.19% expected
Share buyback~$1Bover the coming months
SNPS share price$469.95+8.05% Thursday midday (per [5])
FY2030 operating margin target~50%with mid-teens annual sales growth

What happened

Synopsys (SNPS) stock rose about 8% to roughly $470 on Thursday after announcing a $1 billion-plus AWS chip-design deal, an OpenAI AI partnership and higher 2027 guidance. The Amazon (AWS) deal is multi-year, worth over $1 billion, and pays Synopsys a license fee plus royalties on Amazon's custom chips. Synopsys and OpenAI will build GPT-Synopsys, an AI model that helps design chips, and share the revenue. Synopsys also forecast 15% sales growth in fiscal 2027, above the 11.19% analysts expected, and plans a $1 billion buyback of its own shares.

Why it matters

Synopsys makes the software engineers use to design computer chips, so its outlook is a clue to how much AI chip building is coming. The Amazon deal shows big cloud companies are spending more to design their own chips instead of relying only on Nvidia. A higher sales forecast and a share buyback tell investors the company expects steady growth.

Who this affects

Marketbullish
Medium impact
Chip-software stocks get a lift; investors cheer higher growth targets.
Companybullish
High impact
Synopsys shareholders gain from new deals, bigger forecast and buyback.
Competitorsmixed
Medium impact
Cadence rose 2.8% but faces a stronger rival.
Industrybullish
Medium impact
AI could speed chip design and boost custom-chip makers.

Synopsys vs Cadence

SynopsysSNPS$90.1B+8.1%24.7x+46.3%
Cadence Design SystemsCDNS$93.5B+2.8%38.5x+14.7%

As of 2026-10-01

How we got here

  1. Synopsys unveils AWS deal, OpenAI partnership, buyback and FY2027 outlook at investor day.

  2. Shares close Wednesday at $434.94 after a rise of nearly 5%.

  3. Shares extend gains Thursday, up about 8% midday near $470.

What to watch

  • Pace of the roughly $1B share buyback over the coming monthsQ4 2026
  • Synopsys full-year results and first detail on GPT-Synopsys customer adoptionQ4 2026

Educational content only. Not investment advice.

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