Chip design software provider Synopsys SNPS -1.04% ▼ reported better-than-expected second-quarter results and guidance, but the stock is still sinking in today’s trading. Nevertheless, analysts remained bullish on the firm. For instance, J.P. Morgan JPM +0.87% ▲ , led by five-star analyst Harlan Sur, maintained its Buy rating and $650 price target, which implies over 30% upside. The investment firm said that Synopsys delivered another solid quarter, raised its Fiscal 2026 outlook, and appears to be returning to a more consistent beat-and-raise pattern.

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It also pointed to strong demand for chip design tied to AI infrastructure and custom chips from hyperscalers. In addition, J.P. Morgan said that the Ansys portfolio (which Synopsys recently acquired) is benefiting from the rising adoption of physical AI and digital twins in the aerospace, defense, automotive, and industrial markets. The analysts believe that Synopsys’ Design IP business likely bottomed in the first quarter and is now improving sequentially. They also said that Synopsys’ agentic AI monetization story is becoming clearer, with initial value-based customer deals expected by the end of Fiscal 2026.

However, Morgan Stanley MS +2.07% ▲ was more cautious. The firm kept a Hold rating but raised its price target to $525 from $480. Analysts led by four-star analyst Lee Simpson said that the quarter and third-quarter guidance were solid, with Design IP revenue of $454 million beating expectations by about 5%, while core Electronic Design Automation revenue was mostly in line. However, Morgan Stanley believes that the medium-term bull case depends on Synopsys proving that its co-design strategy, silicon-to-systems approach, and joint Synopsys-Ansys products can become repeatable, large-scale customer workflows.

Is SNPS Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on SNPS stock based on nine Buys, 19 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SNPS price target of $578.15 per share implies 19.4% upside potential.

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The ongoing artificial intelligence (AI) boom has boosted investor sentiment toward chip stocks, driven by massive demand for semiconductors and related infrastructure to support complex AI workloads. All eyes are now on Broadcom’s AVGO +4.73% ▲ fiscal second-quarter earnings on June 3. AVGO stock has gained 29% year-to-date, fueled by AI-led demand for the company’s custom chips and networking products. Several top analysts are bullish on Broadcom stock ahead of Q2 FY26 earnings. Let’s look at the reasons for their optimism.

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Meanwhile, Wall Street expects Broadcom to report Q2 FY26 EPS (earnings per share) of $2.40, reflecting 52% year-over-year growth. Revenue is projected to rise more than 47% to $22.12 billion.

Top Analysts’ Views on AVGO Stock

Recently, TD Cowen analyst Joshua Buchalter reiterated a Buy rating on Broadcom stock and increased his price target to $500 from $405. The 5-star analyst believes that Broadcom is well-positioned to meet or exceed the 30% sequential growth expectation for the July quarter, driven by growing adoption of Google’s GOOGL -2.51% ▼ TPUs (tensor processing units) and networking demand. In fact, Buchalter sees potential upside to AVGO’s previous outlook of more than $100 billion in AI semiconductor revenue in 2027, with program visibility and implied volumes indicating significantly higher revenue contribution.

Likewise, UBS analyst Timothy Arcuri increased his price target for AVGO stock to $490 from $475 and reiterated a Buy rating. The top-rated analyst raised his price target to reflect the higher valuation for the semiconductor peer group following the rally over the past few months. Arcuri believes that the Street’s estimates for Broadcom’s next few quarters appear “very beatable.” He expects Broadcom to guide Q3 FY26 revenue well ahead of the Street’s estimate of about $22 billion. Arcuri expects AVGO to deliver AI revenue of $13.6 billion in Q3 FY26.

Meanwhile, Arcuri slightly lowered his Fiscal 2027 AI revenue estimate to $133 billion from about $145 billion to reflect the conversion of Broadcom’s Anthropic order from full racks to a more standard ASIC arrangement. The analyst noted that this conversion now represents about 25% of the originally expected revenue, but with much higher margins.

Additionally, Susquehanna analyst Christopher Rolland raised his price target for AVGO stock to $490 from $450, while maintaining a Buy rating. The 5-star analyst expects Broadcom to deliver better-than-expected results, driven by upside from both custom ASICs and AI networking businesses. That said, he expects the current quarter outlook to be “more modest,” as he now thinks that Anthropic’s initial nearly $10 billion TPU order expected in the second half of Fiscal 2026 will no longer include rack-level revenue. Consequently, Rolland cut his Fiscal 2026 AI revenue projection to about $55 billion from the prior estimate of $62.5 billion.

What Is the Price Target for AVGO Stock?

Heading into Q2 FY26 earnings, Wall Street has a Strong Buy consensus rating on Broadcom stock based on 26 Buys and four Holds. The average AVGO stock price target of $480.04 indicates 7.5% upside potential.

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The SPDR S&P 500 ETF Trust SPY +0.25% ▲ gained 0.25% on Friday, May 29, hitting a new record high thanks to an AI‑driven tech rally and growing hope for a possible U.S.-Iran ceasefire.

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Importantly, SPY closely tracks the S&P 500 Index (SPX), which was up 0.22% in the regular trading session, while the tech-heavy Nasdaq-100 (NDX) gained 0.36%.

Fund Flows and Sentiment

SPY’s net inflows totaled $2 billion, showing that investors put capital into the ETF over the past five trading days. Meanwhile, its three-month average trading volume is 69.67 million shares.

It must be noted that the crowd wisdom for the SPY ETF is neutral, while the hedge fund managers have decreased their holdings of the ETF during the last quarter.

SPY’s Key Holdings with Highest Upside/Downside Potential

According to TipRanks’ unique ETF analyst consensus, which is based on a weighted average of analyst ratings on its holdings, SPY has a Strong Buy rating. The Street’s average price target of $867.12 for the SPY ETF implies an upside potential of 14.63%.

Currently, SPY’s five holdings with the highest upside potential are:

• Loews L -1.21% ▼
• Charter Communications CHTR -2.18% ▼
• Boston Scientific BSX -1.63% ▼
• Trimble TRMB +2.71% ▲
• Insulet PODD +1.61% ▲

Meanwhile, its five holdings with the greatest downside potential are:

• Intel INTC -5.14% ▼
• Qualcomm QCOM +3.18% ▲
• Ciena CIEN +1.76% ▲
• Ford F +4.74% ▲
• First Solar FSLR +1.12% ▲

Revealingly, the ETF’s Smart Score is eight, implying that this ETF is likely to outperform the broader market over the long term.

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Quantum computing is moving from theory to real commercial use, and analysts say a few companies are best positioned to benefit from the progress. With rising demand for faster AI work, stronger cybersecurity, and advanced science tools, analysts point to three stocks: Alphabet GOOGL -2.51% ▼ , Rigetti Computing RGTI -5.51% ▼ , and Sealsq LAES -6.45% ▼ . Each one covers a different part of the quantum market, including big‑tech research, specialized hardware, and secure quantum chips.

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RGTU: an alternative to margin or options on RGTI

1. Alphabet (GOOGL)

Alphabet’s quantum team has been building fast superconducting chips and working toward systems that can run with far fewer errors. The tech giant’s deep research budget and close ties between quantum and AI could help speed up model training and other tasks in the future.

The company also carries less risk than smaller pure‑play quantum firms because quantum is only one part of its huge business. This gives investors exposure to quantum progress without the sharp swings seen in early‑stage companies.

GOOGL stock has an analyst consensus of Strong Buy and carries an average price target of $427.50, indicating a 12.4% upside potential.

2. Rigetti Computing (RGTI)

Rigetti builds full‑stack superconducting quantum systems and has been working to improve qubit fidelity, cut error rates, and grow system size. Analysts point to steady progress on its multi-chip processors, which are key for building larger and more powerful machines.

They also pointed to the company’s government and defense contracts, which bring in steady income and help validate its tech. While still early‑stage, analysts say Rigetti offers high‑risk, high‑reward exposure to the hardware race.

RGTI stock has an analyst consensus of Moderate Buy, with an average price target of $30.00, suggesting an upside of 17.46%.

3. Sealsq (LAES)

Sealsq makes secure chips, crypto modules, and identity tools that can stand up to future quantum attacks. Analysts are optimistic about rising demand for quantum-safe encryption in government, IoT, and industrial systems, along with Sealsq’s growing lineup of secure microcontrollers and authentication chips.

While it is not a pure hardware play, analysts say it gives investors exposure to a niche market that will matter more as quantum tech grows.

Currently, LAES stock has an analyst consensus of Moderate Buy. With an average price target of $6.00, the stock has an implied upside potential of 72.41%.

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