Synopsys (NASDAQ:SNPS) shares rose 2.5% in premarket trading following a series of announcements made at the company’s 2026 Investor Day in New York.
The announcements included a multi-year agreement with Amazon Web Services valued at more than $1 billion, a strategic partnership with OpenAI, a share repurchase programme and an increase to Synopsys’ fiscal 2027 revenue guidance.
Under the AWS agreement, Amazon will license Synopsys’ silicon intellectual property and engineering software for custom chips including its Nitro, Graviton and Trainium processors.
Amazon will become the lead customer for Synopsys’ expanded application-optimised intellectual property business.
AWS Agreement Includes Licence and Royalty Payments
The AWS arrangement uses a licence-plus-royalty structure, meaning a portion of Synopsys’ revenue from the agreement will vary according to Amazon’s chip production volumes.
Synopsys also announced a multi-year strategic partnership with OpenAI to jointly develop GPT-Synopsys, a specialised artificial intelligence model intended to perform semiconductor design workflows using the company’s electronic design automation tools.
Under the partnership, Synopsys and OpenAI will share revenue generated through customer use of the model and collaborate on go-to-market activities.
Synopsys Raises Fiscal 2027 Revenue Guidance
Synopsys also announced a share repurchase programme of approximately $1 billion, representing up to 50% of free cash flow.
The company raised its fiscal 2027 revenue guidance to approximately $11.15 billion at the midpoint, representing expected year-on-year growth of around 15%. The revised figure is above the previous analyst consensus of approximately $10.8 billion.
The broader US equity market was also higher, with the S&P 500 gaining 0.3% and the Nasdaq advancing 0.6%.
Morgan Stanley upgraded Synopsys to Overweight in early September, citing progress with the Ansys integration and the company’s exposure to custom silicon and physical AI demand. Analyst recommendations represent opinions and do not guarantee future share-price performance.
Synopsys stock price
