AIVL0.418%
as of Oct 23
SNPS
GrowthSYNOPSYS INC
Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions.
Close · 3M
-13.01%
Held by 2 AI ETFs
PQUS0.350%
as of Oct 23
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals7
Win rate29% (2/7)
Avg buy return-5.20%
AIVL · Weight decrease · 5d
weight 0.505% → 0.446% (-0.058 pp)·stock up 19.3% in the 30 days before
Oct 16·entry $454.63·now $430.14
-5.39%
since Oct 16
AIVL · Weight decrease · 4d
weight 0.505% → 0.459% (-0.045 pp)·stock up 23.7% in the 30 days before
Oct 15·entry $468.11·now $430.14
-8.11%
since Oct 15
AIVL · Weight decrease · 3d
weight 0.505% → 0.475% (-0.030 pp)·stock up 30.5% in the 30 days before
Oct 14·entry $479.93·now $430.14
-10.37%
since Oct 14
AIVL · Weight decrease · 2d
weight 0.505% → 0.488% (-0.017 pp)·stock up 29.6% in the 30 days before
Oct 13·entry $494.51·now $430.14
-13.02%
since Oct 13
AIVL · New entry · 1d
weight 0 → 0.501% (new)·stock up 17.8% in the 30 days before
Oct 2·entry $489.90·now $430.14Fresh
-12.20%
since Oct 2
PQUS · Weight decrease · 4d
weight 0.400% → 0.360% (-0.040 pp)·stock up 11.4% in the 30 days before
Oct 20·entry $447.62·now $430.14
-3.91%
since Oct 20
PQUS · Weight decrease · 3d
weight 0.400% → 0.370% (-0.030 pp)·stock up 19.3% in the 30 days before
Oct 16·entry $454.63·now $430.14
-5.39%
since Oct 16
PQUS · Weight decrease · 2d
weight 0.400% → 0.380% (-0.020 pp)·stock up 23.7% in the 30 days before
Oct 15·entry $468.11·now $430.14
-8.11%
since Oct 15
PQUS · Weight decrease · 2d
weight 0.560% → 0.390% (-0.170 pp)·stock up 17.3% in the 30 days before
Oct 5·entry $488.47·now $430.14
-11.94%
since Oct 5
PQUS · Weight decrease · 3d
weight 0.800% → 0.600% (-0.200 pp)·stock up 6.5% in the 30 days before
Aug 21·entry $397.87·now $430.14
+8.11%
since Aug 21
PQUS · Weight decrease · 2d
weight 0.800% → 0.780% (-0.020 pp)·stock up 5.4% in the 30 days before
Aug 20·entry $397.92·now $430.14
+8.10%
since Aug 20
PQUS · Weight decrease · 2d
weight 0.840% → 0.780% (-0.060 pp)·stock up 1.1% in the 30 days before
Aug 15·entry $413.22·now $430.14
+4.09%
since Aug 15
PQUS · Weight increase · 2d
weight 0.710% → 0.850% (+0.140 pp)·stock down 6.2% in the 30 days before
Aug 8·entry $411.68·now $430.14Drifting
+4.48%
since Aug 8
PQUS · Weight increase · 2d
weight 0.660% → 0.710% (+0.050 pp)·stock down 14.5% in the 30 days before
Jul 31·entry $388.76·now $430.14Chased
+10.64%
since Jul 31
PQUS · Sudden change · 1d
weight 0.280% → 0.660% (+0.380 pp)·stock down 19.5% in the 30 days before
Jul 26·entry $388.99·now $430.14
+10.58%
since Jul 26
PQUS · New entry · 1d
weight 0 → 0.200% (new)·stock down 6.3% in the 30 days before
Jul 10·entry $445.50·now $430.14Fresh
-3.45%
since Jul 10
-10.87%
since Apr 30
AIUP · Exit · 1d
weight 4.550% → 0 (exited)·stock up 29.6% in the 30 days before
Oct 13·entry $494.51·now $430.14
-13.02%
since Oct 13
AIUP · Weight increase · 2d
weight 4.620% → 4.760% (+0.140 pp)·stock up 28.4% in the 30 days before
Oct 9·entry $509.99·now $430.14Fresh
-15.66%
since Oct 9
AIUP · New entry · 1d
weight 0 → 4.650% (new)·stock up 28.3% in the 30 days before
Oct 6·entry $505.17·now $430.14Fresh
-14.85%
since Oct 6
AIEQ · Exit · 1d
weight 0.050% → 0 (exited)·stock up 18.3% in the 30 days before
Oct 1·entry $490.54·now $430.14
-12.31%
since Oct 1
-5.37%
since Jul 1
-12.62%
since May 30
-13.54%
since May 3
-10.87%
since Apr 30
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of Oct 4
While one AI ETF (AIVL) recently entered a position in Synopsys, another (AIEQ) simultaneously exited, indicating mixed algorithmic sentiment. My analysis, however, concludes a 'Fail' verdict primarily due to the company's financial health and valuation, which contrasts with AIVL's decision to initiate a stake.
- Circle of CompetenceSynopsys's role in Electronic Design Automation (EDA) and recurring revenue model allows for reasonably predictable long-term cash flows, despite the technical complexity of its industry.
- Economic MoatThe company benefits from very high switching costs for customers, proprietary technology, and significant R&D scale advantages in the specialized EDA software market.
- ManagementInformation regarding management's candor, capital allocation track record, and insider ownership is not available in the provided data.
- Financial HealthThe reported ROE of 3.57% is significantly below the framework's requirement of a 10-year average of at least 15% with no single year below 10%.
- Margin of SafetyWith a high PER of 87.21 and EV/EBITDA of 36.51, especially given the low ROE, the current price does not offer a defensible margin of safety relative to a conservative estimate of intrinsic value.
Synopsys operates in an understandable industry with a strong economic moat, suggesting a high-quality business. However, the company's reported Return on Equity falls significantly short of the financial health criteria, and its current valuation multiples do not provide a sufficient margin of safety. Consequently, despite its competitive strengths, the company fails the overall value investing framework based on these financial and pricing concerns.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.