Leading semiconductor design software company Synopsys (NASDAQ: SNPS) is having a moment. Over the last three years, the company has shot out of relative obscurity and into the limelight — and for good reason.
As per new CEO Sassine Ghazi, Synopsys has “delivered a 17% revenue CAGR [compound average growth rate], non-GAAP [generally accepted accounting principles] operating margin improvement of 7 points, and non-GAAP EPS [earnings per share] growth at a 26% CAGR.” For a large software company, it’s been a stellar run higher, especially considering that includes a bear market.
But is that financial performance good enough to justify an 80% run since the start of 2023? Perhaps.
A more important question, though, is what will happen going forward — because while Nvidia gets most of the attention for the current AI hype, Synopsys plays a huge role as well. Can Synopsys go parabolic like…
