Piper Sandler analyst Clarke Jeffries upgraded Synopsys (SNPS) from Neutral to Overweight.
The firm increased its price target by 22%, raising it from $450 to $550.
This positive revision arrives despite a broader downturn across the technology sector.
Improving business conditions at Intel, a key customer for Synopsys, primarily drive the upgrade.
Positive developments in Intel's foundry business and advanced process nodes are creating a stronger demand environment.
These factors are expected to trigger a faster-than-anticipated recovery for the Synopsys intellectual property segment.