Synopsys (SNPS): Amazon, OpenAI and a New Growth Outlook

Jonathan Poyer

31 minutes ago

2 min read

Synopsys (SNPS) made several significant announcements at its 2026 Investor Day, including new agreements with Amazon and OpenAI and updated long-term financial targets.

The announcements were followed by a significant move in the stock: SNPS gained 12.8% on October 1, closing at $490.54.

Here are the key developments.

Amazon: $1 Billion+ Agreement

Synopsys announced a multi-year agreement worth more than $1 billion with Amazon focused on custom silicon.

The agreement includes:

Synopsys application-optimized silicon IP for Amazon's custom chips
Expanded use of Synopsys EDA, simulation and analysis technologies
A license-plus-royalty business model tied to production volumes
Collaboration around Amazon's Trainium and Graviton processors
Synopsys adoption of Amazon EC2 and Amazon Bedrock for its own development

Amazon has developed purpose-built processors including Graviton, Trainium and Nitro for AWS infrastructure.

OpenAI + Synopsys: GPT-Synopsys

Synopsys also announced a multi-year partnership with OpenAI to develop GPT-Synopsys, a specialized AI model for semiconductor design.

The model is being designed to directly operate Synopsys' electronic design automation tools.

The companies say engineers will be able to delegate objectives including:

Power optimization → Performance → Area → Timing → Verification

GPT-Synopsys will run Synopsys tools, interpret the results, make changes and iterate toward a verified design for engineer review.

OpenAI will license Synopsys EDA tools for development of the model, and the companies have established a shared-revenue framework for the offering.

Early technology engagements with semiconductor customers are already underway.

New FY2027 Financial Targets

Synopsys also provided its initial fiscal 2027 outlook:

FY2027 Guidance	Target
Revenue	$11.10B–$11.20B
Revenue Growth at Midpoint	~15%
Non-GAAP Operating Margin	~44%
Non-GAAP EPS	$19.04–$19.12
Operating Cash Flow	~$3.6B
Free Cash Flow	~$3.1B

The company also said it intends to repurchase approximately $1 billion of shares over the coming months, subject to market conditions.

Longer term, Synopsys is targeting mid-teens revenue growth through FY2030 while continuing to expand non-GAAP operating margins.

The Stock Reacts

Investors responded quickly.

SNPS closed October 1 at $490.54, gaining approximately 12.8% in a single trading session.

The move followed the company's Investor Day, including the Amazon and OpenAI announcements and Synopsys' updated financial targets.

By the Numbers

$1B+ — Amazon multi-year agreement
~15% — expected FY2027 revenue growth
$11.15B — FY2027 revenue guidance midpoint
~$3.1B — expected FY2027 free cash flow
~$1B — planned share repurchases
+12.8% — SNPS stock move on October 1
$490.54 — October 1 closing price

A busy Investor Day for one of the companies providing the engineering tools behind increasingly complex AI and semiconductor systems.