11 Oversold Blue Chip Stocks to Buy According to Hedge Funds

6. Synopsys, Inc. (NASDAQ:SNPS)

% Decline Over Past 1 Year: ~20%

Number of Hedge Fund Holders: 72

Market Cap as on March 7: $69.7 billion

Synopsys, Inc. (NASDAQ:SNPS) offers electronic design automation software products used to design and test integrated circuits. Needham analyst Charles Shi has maintained the bullish stance on the company’s stock, giving a “Buy” rating. The analyst’s rating is backed by factors that revolve around its recent performance and future outlook. Synopsys, Inc. (NASDAQ:SNPS) has maintained its financial guidance. For FY 2025, it expects revenue in the range of $6,745 million – $6,805 million.

As per the analyst, the consistency is regarded as a positive indicator, even as Synopsys, Inc. (NASDAQ:SNPS) expects a decrease in revenue from China. The analyst also noted the market’s current pricing of Intel-related risks into the company’s stock. The pricing adjustment results in enhancing the stock’s risk/reward profile, making it attractive. Elsewhere, Morgan Stanley analyst Lee Simpson maintained a “Buy” rating on Synopsys, Inc. (NASDAQ:SNPS)’s stock, setting a price target of $590.00.

This rating highlights the company’s strong performance and strategic positioning. As per the analyst, despite the slowing growth in China, Synopsys, Inc. (NASDAQ:SNPS) demonstrated strength in other areas, mainly in its hardware segment, which supported it in maintaining its FY 2025 guidance. Parnassus Investments, an investment management company, released the Q3 2024 investor letter. Here is what the fund said:

“Synopsys, Inc. (NASDAQ:SNPS) plays a crucial role in optimizing semiconductor processing power beyond physical design limits. It benefits from companies like Google and Amazon designing their own chips and the proliferation of AI accelerator development. Its proprietary EDA technology and rising demand for custom chips and AI accelerators should drive durable revenue and earnings growth.”