It still mostly doesn't come in on lists of top software-as-a-service (SaaS) stocks, but Synopsys (NASDAQ: SNPS) really should. Back in 2020, the market rerated the largest provider of semiconductor and artificial intelligence (AI) systems design tools for what was becoming an emergent growth trend, and Synopsys has barely looked back ever since. The stock has doubled over the last three years alone.  

Even now, though, many investors have barely heard of Synopsys and its closest peer Cadence Design Systems. This is no "cheap" investment, but likely for good reason. This could be a sustainable growth stock for many years as chips and AI are in rapid expansion mode.

In its latest quarter (Q3 fiscal 2023, the three months ended in July 2023), Synopsys said 65% of its $1.49 billion in revenue came from its core electronic design automation software business, or EDA. As is also the case with the other two dominant EDA players Cadence and Siemens (called Mentor before the German industrialist acquired it), EDA software isn't just for semiconductor companies anymore. 

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Source Fool.com