Why Synopsys Stock Just Rocketed Higher Today - 2025’s Biggest Tech Surge

Synopsys shares just ripped through the market's expectations—leaving traditional finance scratching their heads while tech investors celebrate.

What's Driving the Surge

The chip design giant smashed earnings projections, sending its stock soaring as algorithms scrambled to catch up. No fluffy guidance upgrades here—just hard numbers beating the street.

Tech's New Darling

While legacy sectors cling to outdated valuations, Synopsys proves once again that software-defined silicon isn't just the future—it's printing money today. Wall Street analysts? Still busy downgrading oil stocks.

Bottom Line: In a market obsessed with AI hype, Synopsys delivers actual performance. Maybe traditional portfolio managers should try reading a tech report instead of a balance sheet from 1985.

Image source: Getty Images.

What Mizuho says about Synopsys stock

In a bit of a backhanded compliment today,lowered its price target on Synopsys stock to $600. But seeing as Synopsys only costs about $430 and change right now, Mizuho nevertheless insisted the stock's sudden decline presents investors with a buying opportunity.

"Fiscal 2026 is a transition year for Synopsys," reports The Fly, but Mizuho "remains confident in management's ability to sustain growth in simulation while focusing on profitability and debt reduction."

Is Synopsys stock a buy?

I disagree.

Not on the company's ability to keep growing, to pay down debt, and to focus on profitability -- but simply on the idea that Synopsys stock is cheap enough to buy.

Even after its dramatic decline yesterday, Synopsys stock still sells for 36 times earnings, and a staggering 55 times trailing free cash flow. That's way more than any investor should pay for a stock that, according to analysts polled by S&P Global Market Intelligence, is only growing earnings at about 13% annually over the next five years.

Synopsys stock, I fear, has farther to fall. It's not yet a buy.