12 Best Nanotechnology Stocks to Buy According to Hedge Funds

9. Synopsys, Inc. (NASDAQ:SNPS)

Number of Hedge Fund Holders: 53

Synopsys, Inc. (NASDAQ:SNPS) is a leader in electronic design automation software, helping chipmakers overcome challenges in the nanotechnology era. Its innovative tools include the QuantumATK Atomistic Simulator, which allows companies to simulate material performance at the nanometer scale, and Composite Current Source (CCS) modeling technology, enabling detailed timing, noise, and power analysis with a unified library model for nanometer designs.

On December 6, Piper Sandler revised its outlook on Synopsys, Inc. (NASDAQ:SNPS), lowering the price target from $670 to $655 while maintaining an Overweight rating. The adjustment came after the company provided fiscal year 2025 revenue guidance that fell short of expectations, including Piper Sandler’s estimates, even after accounting for the 53rd week and the divestiture of the Optical Solutions Group (OSG). Synopsys’ FY25 guidance midpoint was $6.775 billion, slightly below the analyst’s $6.830 billion projection. Notably, this guidance still appears to include OSG revenue. The company has adopted a cautious stance on FY25, particularly regarding growth prospects in China. Piper Sandler noted that even with weaker growth in China, Synopsys, Inc. (NASDAQ:SNPS) could still achieve low-teens growth, excluding the effects of the 53rd week and the China market.

On December 11, Reuters reported that Synopsys, Inc. (NASDAQ:SNPS) has proposed selling one of its own units, along with a unit from Ansys, to secure European Union approval for its $35 billion acquisition of Ansys’ chip design software business. Ansys is known for its software solutions for autonomous vehicle sensor simulations. The European Commission is currently seeking feedback from competitors and customers on Synopsys’ proposal.

Parnassus Core Equity Fund stated the following regarding Synopsys, Inc. (NASDAQ:SNPS) in its Q3 2024 investor letter:

“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.”