3 Software Stocks to Monitor as the Sector Picks Up Speed
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Should l Buy SNPS?
Source: NASDAQ.COM
Industry Overview: The Zacks Computer Software industry encompasses companies that develop software applications for various sectors, including AI, cloud computing, cybersecurity, and digital media, with a focus on simulation software for engineering and design.
Trends Influencing Growth: Key trends shaping the software industry include increased spending on AI and cloud solutions, a heightened focus on cybersecurity due to rising cyber threats, and macroeconomic challenges that may impact overall performance.
Market Performance: The Zacks Computer Software industry has underperformed compared to the broader technology sector and the S&P 500 over the past year, with a modest gain of 3.3% against higher increases in both benchmarks.
Stock Recommendations: Notable companies in the industry include Simulations Plus, Synopsys, and Descartes, each showing varying growth prospects and challenges, with recommendations based on their current performance and future potential in the market.
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Analyst Views on SNPS
Wall Street analysts forecast SNPS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNPS is 565.64 USD with a low forecast of 500.00 USD and a high forecast of 602.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 410.440
Low
500.00
Averages
565.64
High
602.00
Current: 410.440
Low
500.00
Averages
565.64
High
602.00
About SNPS
Synopsys, Inc. is engaged in providing engineering solutions from silicon to systems, enabling customers to innovate artificial intelligence (AI)-powered products. It delivers silicon design, intellectual property (IP), simulation and analysis solutions, and design services. It supplies mission-critical electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs). Its Design Automation segment includes its advanced silicon design, verification products and services and system integration products. This segment also includes digital, custom and field programmable gate arrays, integrated circuit design software, verification software and hardware products, system integration products and services, and manufacturing software products. Its Design IP segment includes its interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services that serve companies in the semiconductor and electronics industries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Webcast Availability: Participants should access the corporate website at least 10 minutes prior to the call to listen to the live webcast, with a replay available starting at approximately 5:00 p.m. PT on the same day until the next earnings release.
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- Conference Call Timing: The company will host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss financial results and future outlook, enhancing communication with investors.
- Webcast Availability: Investors can access the live webcast of the conference call via the corporate website, with a recommendation to log in at least 10 minutes prior to ensure smooth participation and efficient information retrieval.
- Replay Arrangement: A replay of the call will be available starting February 25, 2026, at approximately 5:00 p.m. PT, until the announcement of Q2 FY2026 results, ensuring that investors who missed the live event can access important information.
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- Strengthened Partnerships: By collaborating with key semiconductor partners like Silicon Catalyst, Arm, and Synopsys, Edgewater has gained critical infrastructure support that reduces development costs and execution risks, thereby enhancing its market entry capabilities.
- Performance Validation Improvement: Edgewater's Spectrum Slicing™ technology has achieved 7-18x performance gains and approximately 50% lower latency in a Tier-1 operator environment, further solidifying its market position in the Wi-Fi8 era.
- Strategic Advisor Appointment: The company appointed Wi-Fi semiconductor pioneer Rick Bahr as a strategic advisor to support the execution of its technology roadmap and market alignment, marking a further maturation of Edgewater's technical and market strategy.
See More
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- Earnings Expectations: Synopsys is set to report its Q1 results on February 25, with analysts forecasting earnings of $3.56 per share and revenue of $2.39 billion, which could bolster market confidence and drive stock price recovery if met.
- Rating Upgrade: Barclays raised the price target for Rocket Companies from $19 to $22 while maintaining an Equal-Weight rating, indicating confidence in the company's future growth despite a recent 13.7% drop in share price to $17.93.
- Buy Recommendations: Both Citigroup and Truist Securities maintained Buy ratings on Gilead Sciences, raising their price targets to $156 and $145 respectively, reflecting optimism about its future performance, with shares rising 1.7% to $141.95.
- Holiday Sales Outlook: On Holding is expected to report strong holiday sales, with BTIG reiterating a Buy rating and a $70 price target, as shares increased 0.8% to $45.25, indicating market expectations for sales growth.
See More
Synopsys to Report Q1 FY2026 Results on February 25
- Earnings Release Schedule: Synopsys will announce its Q1 FY2026 financial results on February 25, 2026, after market close, providing critical financial and statistical information for investor analysis.
- Conference Call Details: The company will host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to review its financial results and business outlook, ensuring timely access to the latest information for investors.
- Webcast Availability: Participants should access the corporate website at least 10 minutes prior to the call to listen to the live webcast, with a replay available starting at approximately 5:00 p.m. PT on the same day until the next earnings release.
- Company Background: Synopsys is a leader in engineering solutions from silicon to systems, dedicated to helping customers rapidly innovate AI-powered products, enhancing R&D capabilities and productivity to drive future innovation.
See More
Synopsys to Report Q1 FY2026 Results on February 25, 2026
- Earnings Report Schedule: Synopsys will announce its Q1 FY2026 results on February 25, 2026, after market close, providing critical financial data and business outlook to help investors assess future performance.
- Conference Call Timing: The company will host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss financial results and future outlook, enhancing communication with investors.
- Webcast Availability: Investors can access the live webcast of the conference call via the corporate website, with a recommendation to log in at least 10 minutes prior to ensure smooth participation and efficient information retrieval.
- Replay Arrangement: A replay of the call will be available starting February 25, 2026, at approximately 5:00 p.m. PT, until the announcement of Q2 FY2026 results, ensuring that investors who missed the live event can access important information.
See More
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- Tariff Increase: Trump raised tariffs on autos, lumber, and pharmaceuticals from 15% to 25% due to South Korea's legislature failing to approve a trade agreement, potentially exacerbating vulnerabilities in the global memory chip supply chain.
- Market Surge: Despite the tariff hike, South Korean equities surged, with the iShares MSCI South Korea ETF rising over 3%, while Samsung Electronics and SK Hynix saw their shares increase by 4.9% and 8.7%, respectively, reaching record highs.
- Memory Chip Price Surge: Industry data indicates DRAM prices have risen by 171% year-over-year, with DDR5 spot prices quadrupling since September 2025, highlighting an unprecedented squeeze in the global memory market.
- Supply Shortage Outlook: Analysts predict the memory chip shortage will persist through 2026 and 2027, and Trump's tariff policy may further increase costs for downstream industries, complicating budget planning for U.S. corporations.
See More
Surge in AI Data Center Spending Drives Memory Chip Prices Higher
- Memory Chip Shortage: The surge in AI infrastructure investment has led to a memory chip shortage expected to last until 2027, significantly reducing the supply available for consumer electronics like smartphones and PCs.
- Price Increase Pressure: Rising memory prices are forcing electronics manufacturers to consider price hikes, with Lenovo's CFO noting that demand continues to exceed supply, intensifying cost pressures across the industry.
- Market Leaders' Moves: Samsung is accelerating its production of next-generation AI memory, planning to start HBM4 chip manufacturing next month to meet Nvidia's needs, aiming to close the gap with SK Hynix.
- Capacity Expansion Challenges: While leading memory producers like Samsung and SK Hynix are working to expand production, the timeline for new capacity to come online is at least two years, limiting short-term relief from supply constraints.
See More
