Prediction: This Under-the-Radar AI Stock Will Soar Over the Next Decade
AI is changing how chips are designed and the companies that design them.
Overview
Wall Street warmed to Synopsys's (NASDAQ: SNPS) recent investor day presentation, with several analysts promptly hiking price targets, including a Deutsche Bank analyst who maintained a buy rating and raised the target to $640 from $590.
Analysts liked the tech company's growth targets and the multi-year agreement with Amazon.com, which supported its long-term growth aspirations. Are they right to be enthusiastic? I think so, and here's why.
Details
The company's roots lie in electronic design automation (EDA) solutions that help customers -- predominantly semiconductor companies -- design and test chips. That's still a major end market for the company, but chip design is moving beyond traditional semiconductor companies and into a wider range of end-market customers. At the same time, the rapid expansion of physical AI (think autonomous vehicles and robots) is increasing the need for computing power in increasingly complex systems.
Source
Originally published at www.fool.com.
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