Adopting artificial intelligence tools in chip design gave Synopsys (SNPS) wings in 2023. After a massive AI rally, the Nvidia (NVDA) partner is in a buy range again, making Synopsys today’s selection for IBD 50 Stocks To Watch.
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Synopsys’s buy range goes up to 602.46 from a buy point of 573.77. Shares also are finding support at the 10-week moving average, according to the chart tools on IBD MarketSurge.
Sales and earnings growth have been steady over the past eight quarters, giving Synopsys stock a place on the IBD Long Term Leaders list. Revenue grew 21% to $1.6 billion while earnings of $3.56 a share climbed 36%.
Shares broke out ahead of earnings and gapped up on Feb. 22 after first-quarter results. The stock then pulled back to the 50-day moving average before rising past its buy point again.
Year to date, Synopsys stock has gained more than 16%, compared with 10% for the S&P 500. In 2023, the electronics design automation leader jumped more than 60%, more than double the S&P 500’s 24% rise.
Synopsys Stock Gets Lift From Nvidia Partnership For AI Tools
Mutual funds own 58% of outstanding shares of Synopsys. A rising number of funds have been net buyers of Synopsys stock over the past seven quarters.
Recent purchases by mutual funds have given the stock an Accumulation/Distribution Rating of B. The Artisan Mid Cap Fund (ARTMX) and the MFS Growth Fund (MFEGX) hold shares of Synopsys stock.
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