Synopsys experienced a significant boost in 2023 by integrating artificial intelligence tools into chip design, propelling the company forward.
After a remarkable AI-driven surge, the Nvidia partner has once again entered a favorable buying range, positioning itself as the top choice for IBD 50 Stocks To Watch.
For further insights into Synopsys's remarkable growth driven by this transformative trend, visit Investors.com. Synopsys's buying range has now extended to 602.46 from its initial buy point of 573.77, with shares receiving support at the 10-week moving average, according to the chart analysis tools on IBD MarketSurge.
Thanks to consistent sales and earnings growth over the past eight quarters, Synopsys has secured a spot on the IBD Long Term Leaders list.
The company's revenue surged by 21% to reach $1.6 billion, while earnings per share climbed by an impressive 36% to $3.56.
Following a breakout ahead of earnings, which led to a gap up on Feb. 22 after the release of its first-quarter results, the stock temporarily retraced to the 50-day moving average before surpassing its buy point once more.
Year to date, Synopsys's stock has recorded an over 16% increase, surpassing the S&P 500's 10% rise. In 2023, the leader in electronics design automation saw a remarkable surge of over 60%, more than double the S&P 500's 24% growth.
Synopsys's collaboration with Nvidia for AI tools has been a significant driver behind its stock's upward trajectory.