Synopsys (SNPS) is up nearly 18.2% over the last two days and 12.78% on October 1 to close at $490.54. Investors have many reasons for reassessing Synopsys’ growth potential. Synopsys held its Investor Day in September and also announced a $1+ billion agreement with Amazon.com (AMZN) and a new partnership with OpenAI.

What is interesting for me, though, is the rally is not just based on sentiment regarding AI. Synopsys announced improved financial framework for fiscal 2027, which includes greater revenue growth and expanded margins. Also, while the opportunity is improved, the expectations for execution are greater, as the bar has been reset after the repricing.