What happened Synopsys (NASDAQ: SNPS) shareholders beat a rallying market last month. The stock rose 15% in August compared to 3% spike in the S&P 500, according to data provided by S&P Global Market Intelligence. The semiconductor tech giant reported strong earnings and issued a bullish outlook for both 2021 and over the long term. So what Sales trends were robust in the fiscal third quarter, with revenue rising 10% to just under $1.1 billion. That success put Synopsys on a growth and earnings trajectory that management believes is meaningfully better than it had previously estimated. "The market is not only strong," co-CEO Aart de Gues said in the conference call, "it is transforming in a way that is very positive for Synopsys." Image source: Getty Images. Executives say demand for advanced semiconductor chips is rising and should continue expanding thanks to major tailwinds including data storage, transmittal, and processing. Now what Synopsys raised its 2021 outlook, which helps explain why shares are beating the market so far this year. But management also predicted that the need for semiconductor chips is already stretching into future years. More customers are committing to multiyear contracts, which is great news in this cyclical industry. Next up, look for the company to issue an updated long-term outlook in November that likely predicts double-digit sales growth through 2023, along with steadily rising profit margin. Hitting those ambitious targets would mean further solid returns for shareholders. 10 stocks we like better than SynopsysWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Synopsys wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Synopsys. The Motley Fool has a disclosure policy.Source