The Zhītōng Finance app learned that investment firm Baird stated that due to the high demand for design automation, the future revenue growth rate of Synopsys (SNPS.US) in the next few years may reach around 15%, giving it an 'outperform' rating, and raising the target price from $661 to $663.

Analyst Joe Vruwink wrote in an investor report: 'We believe that Synopsys has the opportunity to grow revenue by around 15% and that profit margins will increase significantly in the coming years. Relative to the investor expectation of EDA growth rate of around 10% to 15%, we expect that the process of raising the 'base case' expectations could be beneficial for the stock.'

Vruwink added that despite Intel's cost-cutting measures raising doubts about the growth of the entire semiconductor industry, Synopsys' comments indicate that this is unlikely to have an impact.

"Management believes there is no short-term or mid-term financial impact, and if there is, there may be incremental opportunities, as the partner ecosystem sees deeper usage as part of a broader transformation for the company," Vruwink stated.

On Wednesday, Synopsys reported better-than-expected third-quarter performance and narrowed its revenue expectations for the remainder of the fiscal year.