TLDR
- SNPS fell as much as 11.7% Friday as a broad tech sector sell-off dragged semiconductor names lower
- The Nasdaq dropped 2.22% and the S&P 500 shed 0.96% on the day
- Synopsys plans to discontinue legacy manufacturing process control software to refocus on higher-margin AI design tools
- Benchmark initiated coverage Thursday with a Buy rating and a $570 price target — but the bullish call did little to cushion the drop
- RSI hit 22.49, deep in oversold territory, with SNPS trading well below all major moving averages
Synopsys (SNPS) stock fell as much as 11.7% on Friday, trading down around 5.62% to $393.60 at time of publication, caught in a broad semiconductor sector sell-off with no company-specific bad news driving the move.
Synopsys, Inc., SNPS
The wider market was under pressure, with the Nasdaq down 2.22% and the S&P 500 off 0.96%. Investors rotated out of crowded AI and technology names as risk appetite cooled.
A Reuters report from July 7 added a layer of unease. According to six sources briefed on the matter, Synopsys told more than 10 chipmakers — including Samsung Electronics, SK Hynix, Kioxia Holdings, and Qorvo — that it plans to stop offering a suite of manufacturing process control software.
The software helps monitor and detect anomalies during chip production. Synopsys confirmed it is discontinuing select legacy products to redirect resources toward higher-value offerings, including AI design tools.
The move is strategic, not desperate. Under the “end of life” plan, existing maintenance obligations will still be honored — just no future versions of the discontinued software.
Analyst Coverage Couldn’t Offset the Sell-Off
Despite the macro pressure, analyst sentiment remained constructive. Benchmark initiated coverage on Synopsys Thursday with a Buy rating and a $570 price target — implying major upside from current levels.
But in a risk-off session, fresh buy ratings don’t carry much weight. Traders were cutting exposure to AI-heavy names broadly, and SNPS wasn’t immune.
Year-to-date, SNPS is now down 11.22%, underperforming the broader tech sector heading into summer.
The company’s market cap sits at $81.43 billion. Average daily trading volume runs around 1.88 million, and the technical sentiment signal is currently rated Sell.
Technical Picture Looks Stretched to the Downside
The chart tells a cautious story. SNPS is trading 13.2% below its 20-day simple moving average, 18.7% below its 50-day SMA, and roughly 15% below both its 100-day and 200-day SMAs.
RSI stands at 22.49 — deep in oversold territory following a sharp drawdown through July.
Key resistance sits around $442, which lines up with the 20-day SMA at $441.30 — a level where previous rebounds have stalled. On the downside, $379.50 is the near-term support level to watch, just above the 52-week low zone of $376.18.
Rising chipmaking costs following TSMC’s updated spending plans, along with ongoing Middle East tensions, added further pressure to the session.
SNPS closed Friday’s session with RSI at 22.49 and the stock sitting near 52-week lows.
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