Morgan Stanley upgraded Synopsys to Overweight from Equal-Weight and maintained its $500 price target, describing the recent share-price decline as a buying opportunity. The bank said progress on Ansys integration, renewed double-digit electronic design automation growth and the strategic value of co-design capabilities justified the change, while strong artificial-intelligence demand and a broadening recovery support its constructive sector view. Synopsys shares were around $393.84, down roughly 5.4% intraday when the note was published. The company reported fiscal third-quarter 2026 non-GAAP EPS of $3.91 and revenue of $2.48 billion, above estimates of $3.67 and $2.44 billion, respectively, and raised full-year guidance. Morgan Stanley highlighted Multiphysics Fusion, physical AI simulation tools and the Factory 2 IP framework. Baird separately upgraded the shares to Outperform and raised its target to $560, while Benchmark maintained a positive rating. Morgan Stanley downgraded Infineon and cut its targets for ASML and BE Semiconductor.