The 36% crash looks dramatic on the chart, but context is important in my opinion: Synopsys is still basically a toll road for chip design. Three quarters of negative growth in over a decade is a ridiculous level of consistency. The IP headwinds are painful, sure, but EDA is the crown jewel and it’s not going anywhere. Below $430, you’re getting paid to hold one of the most entrenched duopolies in semis while Wall Street panics over short-term noise.
Great analysis as ever. The debt and Intel's continuing woes are a concern but overall a good opportunity to buy at a more reasonable price (albeit still a tad pricey)
The 36% crash looks dramatic on the chart, but context is important in my opinion: Synopsys is still basically a toll road for chip design. Three quarters of negative growth in over a decade is a ridiculous level of consistency. The IP headwinds are painful, sure, but EDA is the crown jewel and it’s not going anywhere. Below $430, you’re getting paid to hold one of the most entrenched duopolies in semis while Wall Street panics over short-term noise.
Well said!
Great analysis as ever. The debt and Intel's continuing woes are a concern but overall a good opportunity to buy at a more reasonable price (albeit still a tad pricey)
Thanks a lot, Bob!! Indeed, still far from cheap, but this kind of quality rarely becomes truly cheap.
I'm assuming the 38% growth estimate in 2026 is due to the Ansys acquisition?
That’s right. First full year. Organic growth would be high single digits.