, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Synopsys, Inc. ("Synopsys" or the "Company") (NASDAQ: SNPS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980. The investigation concerns whether Synopsys and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] On September 9, 2025, Synopsys issued a p ...

Core Insights - Bragar Eagel & Squire, P.C. is investigating potential claims against Synopsys, Inc. regarding possible violations of federal securities laws and unlawful business practices [1][2]. Investigation Details - The investigation is focused on whether Synopsys has engaged in any unlawful activities that may have affected its stockholders [2]. - Investors who have suffered losses and are interested in discussing their legal rights are encouraged to contact the law firm [3]. Company Performance - On September 9, 2025, Synopsys reported its financial results for Q3 2025, indicating that its IP business underperformed expectations [6]. - The CEO of Synopsys expressed a more conservative outlook for Q4 while still guiding for another year of profitable growth [6]. - Following the announcement, Baird downgraded Synopsys's rating from Outperform to Neutral and reduced its price target from $670 to $535 [6]. - As a result of this news, Synopsys's stock price dropped by $216.59, or 35.84%, closing at $387.78 per share on September 10, 2025 [6].

Core Insights - Synopsys, Inc. is enhancing its role in semiconductor design through an expanded collaboration with Taiwan Semiconductor Manufacturing Company (TSMC) to meet the increasing demand for high-performance AI and system-on-chip (SoC) technologies [1][5] Collaboration with TSMC - Synopsys has certified its digital and analog design flows on TSMC's N2P and A16 processes, utilizing the NanoFlex architecture to optimize chip performance, reduce power consumption, and accelerate time-to-market [2][10] - The IC Validator certification for TSMC A16 improves physical verification, facilitating faster and more reliable design sign-offs [2] - The 3DIC Compiler platform supports advanced 3D stacking and CoWoS packaging technologies, contributing to multiple customer tape-outs and enhancing productivity for complex multi-die designs [3][10] - Synopsys is also collaborating with TSMC on silicon photonics, utilizing AI-optimized photonic flow to address performance and thermal challenges in AI systems [3] Comprehensive IP Portfolio - Synopsys' extensive IP portfolio supports leading standards such as PCIe 7.0, UCIe, HBM4, and 1.6T Ethernet, with dedicated automotive IP for TSMC's N5A and N3A nodes targeting key markets like AI, automotive, and high-performance computing [4] Strategic Partnerships - In addition to TSMC, Synopsys has formed strong partnerships with Intel Corporation and Arm Holdings to advance chip design and innovation [6][9] - The collaboration with Intel focuses on enabling design flows and IP solutions for Intel's latest 18A process node, optimizing performance, power, and area for next-generation processors [7] - Synopsys provides EDA tools and a broad IP portfolio compatible with Arm's CPU, GPU, and AI cores, ensuring quick integration of components and meeting power and performance targets [8][9] Industry Positioning - The strengthened collaboration with TSMC reinforces Synopsys' position as a critical partner in advanced chip development, well-positioned to drive long-term growth in the AI and multi-die era [5]

Core Viewpoint - Synopsys, Inc. is under investigation for potential violations of federal securities laws following a significant drop in stock price after the release of disappointing third quarter 2025 financial results [1][2]. Financial Performance - On September 9, 2025, Synopsys reported third quarter 2025 financial results, missing prior guidance on earnings per share (EPS) and revenue due to underperformance in the IP business, which was attributed to unmaterialized deals [2]. - The company cited several factors negatively impacting results, including new export restrictions disrupting design starts in China, challenges with a major foundry customer, and ineffective road map and resource decisions [2]. Stock Market Reaction - Following the announcement of the financial results, Synopsys's stock price fell by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025, resulting in financial injury to investors [2].

Core Insights - Synopsys (Nasdaq: SNPS) reported fiscal Q3 earnings that surprised Wall Street after the market closed on September 9th [1] Company Summary - The earnings report from Synopsys indicates a significant deviation from market expectations, suggesting potential shifts in investor sentiment and market dynamics [1]

Core Viewpoint - The article discusses the evolving role of AI in Electronic Design Automation (EDA) tools, highlighting both the potential benefits and limitations of integrating AI technologies into the EDA landscape [1][5]. Group 1: AI Integration in EDA - AI has been utilized in EDA for years, with early adopters like Solido Solutions employing machine learning techniques long before generative AI became mainstream [3][5]. - The recent advancements in AI, particularly in generative and agentic AI, have opened new possibilities for EDA tools, although the economic benefits remain uncertain [3][5]. - AI can enhance the efficiency of EDA tools by optimizing design processes and improving productivity, particularly through reinforcement learning techniques [7][8]. Group 2: Challenges and Requirements - Accuracy and verifiability are critical in EDA tools, as design failures can be costly; thus, transparency in AI decision-making is essential [7][10]. - The complexity of chip design requires AI tools to handle vast design spaces effectively, necessitating a combination of traditional algorithms and AI methods [8][11]. - Trust in AI tools is a significant concern, with the need for clear explanations of AI processes to ensure reliability in high-stakes environments like chip design [9][10]. Group 3: Data and Model Limitations - The effectiveness of AI in EDA is hindered by the lack of sufficient training data, particularly for specialized languages and contexts within the industry [11][12]. - Existing companies have a competitive advantage due to their extensive data resources, making it challenging for startups to enter the EDA tool market [8][11]. - The industry must ensure that the training datasets used for AI models are accurate and relevant to avoid producing erroneous outputs [10][11].

Core Insights - Bragar Eagel & Squire, P.C. is investigating potential claims against Synopsys, Inc. regarding possible violations of federal securities laws and unlawful business practices [1][2] Investigation Details - The investigation is focused on whether Synopsys has engaged in any unlawful activities that may have affected stockholders [2] Financial Performance - On September 9, 2025, Synopsys reported its Q3 2025 financial results, indicating that its IP business underperformed expectations [6] - The CEO mentioned a more conservative outlook for Q4 while guiding for another year of profitable growth [6] - Following the announcement, Baird downgraded Synopsys's rating from Outperform to Neutral and reduced its price target from $670 to $535 [6] - As a result of this news, Synopsys's stock price dropped by $216.59, or 35.84%, closing at $387.78 per share on September 10, 2025 [6]

Core Insights - Pomerantz LLP is investigating claims on behalf of investors of Synopsys, Inc. regarding potential securities fraud or unlawful business practices by the company and its officers [1] - Synopsys reported underperformance in its IP business and adopted a conservative outlook for Q4 while still guiding for another year of profitable growth [3] - Following the announcement, Baird downgraded Synopsys's rating from Outperform to Neutral and reduced its price target from $670 to $535 [3] - The stock price of Synopsys fell by $216.59, or 35.84%, closing at $387.78 per share on September 10, 2025, after the news [4]

Core Insights - Synopsys has announced that TSMC has certified its Ansys portfolio for advanced chip design, enhancing workflows for AI, high-speed communications, and advanced computing [2][9] - The collaboration includes the development of an AI-assisted design flow for TSMC's COUPE platform, aimed at improving design efficiency and quality [2][4] Advanced Technology Collaboration - TSMC's advanced manufacturing processes, including N3C, N3P, N2P, and A16, are supported by Ansys RedHawk-SC and Ansys Totem for power integrity verification [5][8] - Ansys HFSS-IC Pro is certified for die-level analysis on TSMC's 5nm and 3nm processes, facilitating complex applications in AI, HPC, and telecommunications [7][8] Design Optimization Tools - Ansys optiSLang and Ansys Zemax OpticStudio are utilized for AI-assisted optimization in optical coupling systems, reducing design cycle times [4][8] - The multiphysics analysis flow, including Ansys RedHawk-SC and Synopsys 3DIC Compiler, enhances thermal-aware and voltage-aware timing analysis for large 3DIC designs [3][6] Future Developments - Synopsys and TSMC are collaborating on design flow development for TSMC's A14 process, with the first photonic design kit release expected in late 2025 [5] - Ansys PathFinder-SC is a newly certified tool for ESD current density checking, aimed at improving chip resilience and accelerating the design process [6]

Core Insights - Synopsys, Inc. is collaborating closely with TSMC to deliver advanced EDA and IP products that support TSMC's leading-edge processes and packaging technologies, particularly in AI chip and multi-die design [2][3] - The partnership has resulted in multiple customer tape-outs, showcasing the effectiveness of the 3DIC Compiler platform and the comprehensive IP portfolio optimized for TSMC's advanced technologies [2][3] Collaboration and Innovation - Synopsys has made certified digital and analog flows available on TSMC's N2P and A16 processes, utilizing TSMC NanoFlex architecture to optimize performance and power [3][4] - The collaboration includes robust automotive IP solutions for TSMC N5A and N3A processes, ensuring high safety, security, and reliability while maximizing performance [3][4] Technology Advancements - The 3DIC Compiler platform supports advanced 3D stacking and CoWoS packaging technologies, enabling multiple customer tape-outs and enhancing productivity [6][7] - An AI-optimized photonic flow for TSMC-COUPE technology has been developed to improve system performance and address multi-wavelength and thermal requirements [7][8] IP Portfolio and Market Impact - Synopsys offers the industry's broadest IP portfolio optimized for low power on TSMC N2/N2P processes, which accelerates the path to silicon success and reduces integration risk [4][8] - The IP portfolio supports high-performance standards, including HBM4, 1.6T Ethernet, UCIe, PCIe 7.0, and UALink, catering to automotive, IoT, and HPC applications [8] Verification and Design Flow - Synopsys IC Validator signoff physical verification solution is certified for TSMC A16 process, enhancing DRC and LVS checking capabilities [5] - Ongoing collaboration on design flow development for TSMC's A14 process is expected to yield its first process design kit release in late 2025 [3][5]