BUZZ - Synopsys shares rise as fiscal 2027 outlook exceeds expectations

Latest Developments

October 1 - ** Chip design software manufacturer Synopsys SNPS.O released its fiscal 2027 outlook, exceeding Wall Street expectations, with its share price rising 11.6% to $485.72

** The company expects revenue of $11.10 billion to $11.20 billion and adjusted earnings per share of $19.04 to $19.12, while analysts' average estimates were $10.81 billion and $17.81 respectively—data compiled by LSEG

** SNPS plans to repurchase about $1 billion of stock in the coming months

** The company said on Wednesday it has reached an agreement with OpenAI to share revenue when developing AI models for its chip business (link)

** Amazon AMZN.O subsidiary AWS has also signed a multi-year licensing deal (link) involving Synopsys chip design intellectual property, valued at over $1 billion

** Of 24 brokerages, 22 rate the stock as "buy" or above, with 2 rating it "hold"; the median target price is $600— data compiled by LSEG

** As of the previous trading session close, the stock is down 7.4% year to date

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