Company Performance - Synopsys (SNPS) closed at $421.88, with a slight increase of +0.16% from the previous trading day, underperforming the S&P 500's gain of 0.79% [1] - Over the past month, Synopsys shares have decreased by 5.61%, which is worse than the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56% [1] Financial Projections - The upcoming earnings per share (EPS) for Synopsys is projected to be $3.39, representing a 13% increase from the same quarter last year, with expected revenue of $1.6 billion, a 10.18% increase year-over-year [2] - For the entire fiscal year, earnings are estimated at $14.88 per share and revenue at $6.77 billion, indicating increases of +12.73% and +8.05% respectively from the previous year [3] Analyst Estimates and Rankings - Recent modifications to analyst estimates for Synopsys are crucial as they reflect changing business trends, with positive revisions indicating optimism about the company's outlook [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Synopsys at 3 (Hold), with no changes in the consensus EPS estimate over the past month [6] Valuation Metrics - Synopsys has a Forward P/E ratio of 28.31, which is higher than the industry average of 24.06, and a PEG ratio of 2.12, compared to the industry average PEG ratio of 2.09 [7] Industry Context - The Computer - Software industry, which includes Synopsys, has a Zacks Industry Rank of 81, placing it in the top 33% of over 250 industries, indicating strong performance potential [8]

Synopsys Inc. (SNPS) stock has lost 6.8% over the past month, underperforming the Zacks Computer - Software industry's decline of 4.9%. This underperformance raises the question: Should investors cut their losses and exit, or is it worth holding on to? While the near-term headwinds are real, the long-term growth story for Synopsys remains intact, making a strong case for holding the stock.Synopsys One Month Performance ChartImage Source: Zacks Investment ResearchReason Behind Synopsys Stock’s Underperforman ...

Synopsys (SNPS) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this maker of software used to test and develop chips have returned -14.7%, compared to the Zacks S&P 500 composite's -8.3% change. During this period, the Zacks Computer - Software industry, which Synopsys falls in, has lost 8.6%. The key question now is: What could be t ...

Announcing Up to 30x Projected Performance Gains on the NVIDIA Grace Blackwell Platform to Speed Circuit Simulations for Next-Generation SemiconductorsNews Highlights: Today's GTC keynote featured Synopsys as part of the ecosystem with full-stack EDA suite acceleration across design, verification, and manufacturing on NVIDIA GPU and NVIDIA CUDA-X libraries. Leveraging the NVIDIA GB200 Grace Blackwell Superchip, Synopsys PrimeSim is projected to accelerate circuit simulation by up to 30x.1 Leveraging the NVI ...

Synopsys Inc. (SNPS) shares have plunged 22.4% in the past year, underperforming the Zacks Computer and Technology sector and the S&P 500 index’s return of 7.8% and 9.5%, respectively. The stock has also underperformed Zacks Computer – Software industry’s decline of 4.6% in the same time frame.This underperformance raises questions — whether investors should buy, sell or hold SNPS stock?Synopsys One-Year Price Return PerformanceImage Source: Zacks Investment ResearchKey Challenges Impacting Synopsys' Perfor ...

Right now the future of Ansys (NASDAQ: ANSS ) is outside of the control of management or shareholders and lies instead in the hands of bureaucrats and government leaders – not a particularly comforting thought as geopolitical tensions rise and the company’sAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am no ...

Two-Day Conference will Examine Future of AI and Intelligent Systems; Join Keynotes from Synopsys CEO and OpenAI Head of Hardware Via LivestreamSUNNYVALE, Calif., March 12, 2025 /PRNewswire/ -- Synopsys Inc. (Nasdaq: SNPS) will host its annual flagship user group conference, SNUG Silicon Valley, March 19-20, 2025, at the Santa Clara Convention Center. This year, the first day of SNUG will also feature an inaugural, invite-only Synopsys Executive Forum. Synopsys president and CEO Sassine Ghazi will kick off ...

I want to empower Investors, to make as much money, from both income and capital appreciation, with as little risk as possible, through my coverage of dividend, growth, and value companies. This broad coverage allows for discovering new, exciting ideas while covering what makes up reader's portfolios already."In giving (not investment) advice seek to help, not to please, your friend." - SolonMy investing style:Selective Investor looking for opportunities with a good risk-adjusted ROI. For dividend investing ...

Core Insights - Synopsys Inc. has launched Synopsys Virtualizer™ Native Execution on Arm-based hardware, enhancing software development for edge devices and significantly accelerating virtual prototype execution and deployment [2][3] - The innovation aims to improve productivity for engineering teams in automotive, high-performance computing (HPC), and Internet of Things (IoT) sectors [2][3] Group 1: Product Features and Benefits - Virtualizer Native Execution accelerates hardware/software co-design, enabling agile software development methodologies for Arm-based applications [3] - It supports integration into CI/CD methodologies, simplifying software development, validation, and testing workflows through common toolchains [3][5] - The solution delivers accelerated performance with native execution of software workloads on Arm servers, enhancing modeling, simulation, debugging, and analysis capabilities [5][6] Group 2: Market Impact and Use Cases - The automotive industry can benefit from earlier software development, ultimately saving time and costs as developers can leverage Arm's capabilities in cloud and edge environments [4][6] - Faster validation turnaround times lead to improved time to market, with simulation execution speeds significantly increased by executing software binaries directly on Arm application processor cores [6] - The extensive model libraries available on Arm hardware allow for earlier integration and validation of software, expediting debug cycles and time to market [6][10] Group 3: Availability and Support - Synopsys Virtualizer Native Execution is currently available and can be deployed in various environments, including cloud platforms like AWS, Google, and Microsoft [7][10] - The solution supports full system-level validation with electronics digital twins, enhancing productivity in system validation processes [10]

Core Viewpoint - Synopsys (SNPS) has experienced a significant decline in share price, dropping 20.8% over the past year, underperforming compared to the broader market indices and sectors [1][2]. Financial Performance - The first quarter of fiscal 2025 showed mixed results, with earnings and revenues declining year over year by 10.4% and 3.7%, respectively, despite surpassing the Zacks Consensus Estimate [2][4]. - The largest segments, Electronic Design Automation (EDA) and Design IP, contributed 97.2% of total revenues, with EDA revenues increasing slightly by 0.8% to $978.7 million, while Design IP revenues fell by 17.2% to $435.1 million [3]. Guidance and Market Sentiment - Synopsys maintained its fiscal 2025 revenue guidance between $6.745 billion and $6.805 billion, with non-GAAP earnings expected in the range of $14.88-$14.96, but this did not boost investor confidence [4]. - The company has beaten the Zacks Consensus Estimate three times in the last four quarters, with an average surprise of 3.7% [4]. Market Challenges - Several risks are constraining Synopsys' performance, including uneven revenue recognition due to customer product adoption schedules and capacity constraints in data centers [6]. - The sluggish recovery in key markets such as mobile, PC, and automotive is impacting growth, with consumer demand remaining muted amid economic uncertainties [7]. - US-China tensions pose additional risks, as revenues from China accounted for over 15% of total revenues in recent fiscal years, with regulatory challenges and trade tensions affecting investor sentiment [8][9]. Valuation Concerns - Despite the share price decline, Synopsys trades at a forward 12-month price-to-sales (P/S) multiple of 9.98x, above the industry average of 8.31x, raising concerns about limited near-term upside [10]. Strategic Initiatives - Synopsys benefits from strong strategic partnerships with industry leaders like TSMC, NVIDIA, Intel, and Arm Holdings, which enhance its position in chip design innovation [13][14]. - The company is expanding its technological leadership through investments in AI-powered design automation tools, with significant milestones achieved in 2024 [17][19]. Growth Projections - The Zacks Consensus Estimate indicates continued revenue growth for fiscal 2025 and 2026, projecting an 8% and 12.4% increase, respectively, with EPS estimates suggesting a 12.7% and 15.9% rise [21]. Conclusion - The 20.8% decline in Synopsys' stock highlights near-term challenges, but strong fundamentals and technological leadership suggest potential for long-term success [22]. - Maintaining a hold position allows existing investors to participate in growth while navigating volatility, while new investors may consider waiting for a more attractive entry point [23].