So...does that give us any hope ? This sounds like a huge deal
What's the reality behind it?
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I expect more hyperscaler deals to emerge, especially royalty-based IP agreements rather than traditional license-based arrangements, based on management's comments during Investor Day regarding customers (such as Meta, Google, and Microsoft, openAI, spaceX, Anthropic; just my guess. all of them design custom accelerators nowadays)
If that materializes, it could support a meaningful rerating of SNPS (which is actually on-going). My personal view is that the stock could reach $550- 600 by the end of this year and potentially $700 by mid-2027.
Looking further out, I think there is a plausible path to $1,000 within 2-2.5 years if the AI supercycle remains intact and demand for AI infrastructure, custom silicon, and engineering software continues to expand.
The biggest risk to this thesis is not competition, but a major macro or geopolitical shock, such as a severe escalation in U.S.-China tensions or a Taiwan-related crisis, which could disrupt the semiconductor supply chain and significantly impact the entire sector.
@f4 what is a circular deal
Yes. Sassine will personally transfer a part of that money into every employee's account.
@f4 what does it mean ? 1B both ways ? No profitability?
@ba it's a circular deal.
I'm curious how much SNPS is paying back to AWS for its cloud computing ? Maybe 2B ?
@OP Don't know if the investors knows the rating of the CEO by the employees.
@ak can you elaborate why this is fake ? Sorry I am new (and naive?)
@OP the reality is we keep signing fake deals to pump our stock up so Elliot investment management can make a profitable exit.