Synopsys, Inc. (NASDAQ:SNPS) is one of the AI stocks analysts are watching. Wells Fargo lowered its price target to $445 from $550 but maintains an Equal Weight rating. The firm anticipates cautious fiscal 2026 guidance from management following the ANSS acquisition, with revenue around $9.7 billion and $14 EPS.

Citi initiated coverage of Synopsys with a Buy rating and $580 price target. Analyst Kelsey Chia expects the company to benefit from the electronic design automation sector’s growth driven by AI. Despite valuation concerns and past missteps, Citi sees Synopsys as a compelling opportunity with potential for revenue growth.

Synopsys, Inc. (NASDAQ:SNPS) provides software and services for silicon-to-systems design, utilizing AI to enhance semiconductor and electronic system design. The company offers electronic design automation tools, silicon IP, and system verification and validation services. Synopsys.ai suite incorporates AI for EDA.

While Synopsys shows promise as an investment, some AI stocks may offer greater potential with lower risk. For a deep dive into an undervalued AI stock poised to benefit from current trends, check out our report on the best short-term AI stock.

No disclosures. Originally published at Insider Monkey.

Read more at Yahoo Finance: Analysts Diverge on Synopsys (SNPS) as Valuation Concerns Meet Strong AI-Driven Tailwinds