HSBC upgraded Synopsys from Hold to Buy and raised its price target to $700 from $490, identifying the company as a potential high-growth artificial intelligence beneficiary. Analyst Stephen Bersey said Synopsys is shifting from a moderate-growth software provider toward an AI-driven business as rising chip-design complexity increases demand for electronic design automation tools. The target was based on a 35-times multiple of HSBC’s fiscal 2027 earnings forecast of $20.01 per share, 13% above consensus and the most optimistic Wall Street estimate cited in the existing coverage. Synopsys shares were up 1.74% at $432.32 at the time of publication, after previously trading at $424.91 when the approximately 65% upside calculation was made. HSBC also sees a better risk-reward profile after valuation pullbacks linked to China revenue exposure and execution and regulatory concerns surrounding the Ansys integration. The company’s launch of Multiphysics Fusion, its first combined product with Ansys, has helped ease those concerns. HSBC’s outlook also includes design IP licensing and royalties, agentic AI and possible subscription-plus-consumption pricing for AI agents, while recent quarterly results exceeded expectations and led to higher full-year guidance.