Industry Leaders Including AMD, Arm, NVIDIA, and SiFive are Deploying Synopsys' Prototyping and Emulation TechnologiesHighlights New Synopsys HAPS-200 prototyping and ZeBu-200 emulation systems provide the industry's fastest performance New Synopsys Emulation and Prototyping Ready (EP-Ready) Hardware enables configuration for emulation and prototyping use-cases within and across multiple projects on a single hardware platform Enhanced modular hardware-assisted verification (HAV) methodology scales ZeBu Serv ...

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Core Viewpoint - Synopsys, Inc. will report its financial results for the first quarter of fiscal year 2025 on February 26, 2025, after market close, and will host a conference call to discuss these results and the business outlook [1]. Group 1 - The conference call is scheduled for 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time [1]. - Financial and statistical information will be available on the corporate website prior to the call [1]. - A live webcast of the conference call will be accessible, and participants are advised to join at least 10 minutes early [1]. Group 2 - A replay of the webcast will be available starting February 26, 2025, at approximately 5:00 p.m. PT, until the announcement of the second quarter results in May 2025 [1]. Group 3 - Synopsys, Inc. provides comprehensive silicon to systems design solutions, including electronic design automation and silicon IP [2]. - The company collaborates with semiconductor and systems customers across various industries to enhance R&D capabilities and productivity [2].

Synopsys CEO Sassine Ghazi to Deliver Keynote; Technical Experts and Business Leaders To Convene, Discuss the Evolution of Silicon to Systems Design Engineering in the Era of Pervasive Intelligence SUNNYVALE, Calif., Jan. 23, 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. Sy ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Synopsys (SNPS) .Synopsys currently has an average brokerage recommendatio ...

Stock Performance - Synopsys (SNPS) ended the recent trading session at $515 81, showing a +1 7% increase from the previous day's closing price [1] - The stock outperformed the S&P 500's daily loss of 0 21%, the Dow's loss of 0 16%, and the Nasdaq's loss of 0 89% [1] - Over the past month, SNPS stock has climbed by 2 58%, surpassing the Computer and Technology sector's loss of 2 15% and the S&P 500's loss of 1 56% [1] Earnings and Revenue Projections - Synopsys's upcoming earnings per share (EPS) is projected to be $2 81, reflecting a 21 07% decrease from the same quarter last year [2] - Revenue for the upcoming quarter is estimated at $1 45 billion, down 11 9% from the prior-year quarter [2] - Full-year Zacks Consensus Estimates predict earnings of $14 90 per share and revenue of $6 77 billion, representing year-over-year changes of +12 88% and +8 04%, respectively [3] Analyst Estimates and Valuation - Changes in analyst estimates often reflect short-term business dynamics, with positive adjustments indicating a favorable outlook on the company's business health and profitability [4] - The Zacks Rank system, which incorporates these estimate changes, has shown that 1 ranked stocks yield an average annual return of +25% since 1988 [5][6] - Synopsys currently has a Zacks Rank of 3 (Hold) [6] - The company's Forward P/E ratio is 34 04, higher than the industry average of 30 43 [7] - SNPS's PEG ratio is 2 37, matching the industry average [7] Industry Context - The Computer - Software industry, part of the Computer and Technology sector, currently has a Zacks Industry Rank of 153, placing it in the bottom 40% of over 250 industries [8] - Research indicates that the top 50% of industries outperform the bottom half by a factor of 2 to 1 [8]

Industry and Company Overview * **Industry**: Semiconductor and EDA (Electronic Design Automation) * **Company**: Synopsys, a leading provider of semiconductor and software solutions Key Points and Arguments * **Record Revenue and Profitability**: Synopsys achieved record revenue of $6.13 billion in FY24, up 15% year-over-year, with double-digit growth across all products and geographies. Non-GAAP operating margin reached 38.5%, and non-GAAP EPS grew 25% year-over-year. * **Strategic Focus on Growth Segments**: Synopsys sold its software integrity business and is acquiring Ansys, doubling down on its silicon to systems strategy and expanding into new adjacent areas. * **Megatrends Driving Growth**: Synopsys benefits from secular growth drivers such as AI, silicon proliferation, and software-defined systems. The company's success is tied to technology innovation cycles, particularly in AI and HPC chip design. * **AI and EDA**: Synopsys has been a pioneer in adding AI optimization engines to its products, with solutions like DSO.ai and VSO.ai delivering significant customer results. The company is also integrating generative AI into its platform, expanding the capabilities of Synopsys.ai. * **Multi-Die Designs**: Synopsys is actively involved in Multi-Die design, partnering with ecosystem leaders like TSMC to improve predictability and yield. The company's 3DIC Compiler and Synopsys.ai solutions are addressing thermal and power integrity challenges for CoWoS interposer packaging. * **Strong Segment Performance**: * **Design Automation**: Revenue grew 12% year-over-year, driven by strength in EDA software and hardware. The Fusion compiler and Synopsys.ai solutions contributed to this growth. * **Design IP**: Revenue grew 24% year-over-year, driven by broad-based strength. The company achieved significant design wins in PCIe 6, security integrity, and data encryption. * **Hardware**: Revenue grew 17% year-over-year, driven by exceptional momentum on both HAPS and ZeBu product lines. * **Financial Guidance**: Synopsys expects to grow revenue 10.1% to 11.1% in FY25, excluding the impact of the extra week and calendar year change. Non-GAAP operating margin is expected to expand by approximately 150 basis points, and non-GAAP EPS is expected to grow by approximately 13%. Other Important Points * **Regulatory Review**: The regulatory review process for the Ansys acquisition is proceeding as expected, with the HSR waiting period expiring and the FTC investigation ongoing. * **Backlog**: Synopsys ended the year with a non-cancelable backlog of $8.1 billion. * **Macroeconomic Uncertainties**: Synopsys is taking a balanced view of the macroeconomic environment, considering factors such as market dynamics, macro uncertainties, and the impact of the Ansys acquisition. * **China**: Synopsys is taking a cautious approach to China, considering the deceleration in revenue growth and the expansion of restrictions. The company expects China to grow in line with the corporate average in FY25.

Company Overview - Synopsys Inc (NASDAQ: SNPS) participated in the 27th Annual Needham Growth Conference on January 16, 2025, represented by Shelagh Glaser, the CFO [1] - The conference was hosted by Charles Shi, a semiconductor design software and IP analyst at Needham & Company [1] Financial Guidance and Market Insights - Synopsys provided fiscal 2025 guidance during its fiscal fourth quarter conference call, projecting top-line growth of 10 1% to 11 1% for the upcoming fiscal year [4] - The revenue split for fiscal 2025 is expected to be more second-half weighted, with a 45 to 55 profile between the first and second halves [4] - The guidance for 2025 was informed by three key factors, including market conditions, though the specific details of the other two factors were not disclosed in the provided content [5] Stock Performance - Synopsys stock experienced a challenging period in the month leading up to the conference, with some confusion surrounding the fiscal 2025 guidance [4]

Stock Performance - Synopsys shares plunged 20 1% over the past six months, underperforming the Zacks Computer and Technology sector's growth of 1 1% and the S&P 500 index's growth of 3 8% [1] - The stock also underperformed the Zacks Computer - Software industry's decline of 3 3% [1] - Synopsys is trading near its 52-week low of $492 54 [1] Key Challenges - Synopsys' IP and hardware revenues are uneven due to customer product adoption schedules and capacity constraints for deploying hardware in data centers [2] - Sluggish recovery in mobile, PC, and automotive markets, which are vital for Synopsys' customer base, due to global supply chain disruptions and inflationary pressures [4] - US-China trade tensions and export controls add uncertainty, as China accounts for over 15% of Synopsys' total revenues [6][7] Financial Performance - Design Automation segment saw a 12% year-over-year revenue increase in fiscal 2024, driven by demand for EDA software and hardware [5] - Design IP segment in the automotive market contributed positively with 24% revenue growth, though vulnerable to macroeconomic slowdowns [5] - Zacks Consensus Estimate for fiscal 2025 and 2026 projects continued revenue and earnings growth [17] Valuation - Synopsys trades at a forward 12-month price-to-sales (P/S) multiple of 10 97x, significantly above the industry average of 8 50x [9] Strategic Partnerships and Technological Leadership - Strong partnerships with industry giants like TSMC, NVIDIA, Intel, and Arm Holdings enable Synopsys to maintain leadership in chip design innovation [11] - Collaborations focus on advancing AI, high-performance computing, and next-generation semiconductor designs [12] - Joint efforts with TSMC on Multi-Die test chip tape-outs and collaborations with NVIDIA and Arm for GPU design and integrated solutions [13] AI Expansion - Synopsys has expanded its AI capabilities through investments in AI-powered design automation tools [14] - Achieved milestones in AI, including partnerships with SiMa ai for automotive AI solutions and certifications on Samsung Foundry's SF2 process [15][16] - Released AI products like the PCIe 7 0 IP solution, Polaris Software Integrity Platform, Synopsys ZeBu EP2, and HAPS-100 12 [16] Sales and EPS Estimates - Zacks Consensus Estimate for current quarter (1/2025) sales is $1 45B, with a year-over-year growth estimate of -11 90% [18] - Next quarter (4/2025) sales estimate is $1 60B, with a year-over-year growth estimate of 9 78% [18] - Current year (10/2025) sales estimate is $6 77B, with a year-over-year growth estimate of 8 04% [18] - EPS estimates for current quarter (1/2025) are $2 81, with a year-over-year growth estimate of -21 07% [18] - Next quarter (4/2025) EPS estimate is $3 37, with a year-over-year growth estimate of 12 33% [18] - Current year (10/2025) EPS estimate is $14 90, with a year-over-year growth estimate of 12 88% [18] Conclusion - Synopsys' 20% decline over the past six months highlights near-term challenges, but strong fundamentals and technological leadership underscore long-term potential [19] - Existing investors may consider holding the stock, while new investors could wait for a better entry point [20]

Industry Trends - Companies exposed to artificial intelligence and accelerated computing continue to see strong end demand and visibility [1] - Consumer-facing markets like smartphones and IoT are tracking demand trends in line with expectations [1] - Demand trends in automotive and industrial sectors remain mixed [1] - Overall demand trends align with expectations for calendar 2025, favoring companies leveraged to AI and accelerated computing [3] Company Highlights - Nvidia sees strong demand for 2025 with the launch of its Blackwell platform [4] - Marvell's AI revenues are significantly ahead of prior expectations at $2.5 billion, with continued growth expected in 2026 [4] - Synopsys' AI and accelerated compute-leading chip and system design remain strong with a multi-year tailwind [4] - Analog Devices anticipates sequential growth trends beyond the January quarter [4] - Micron's setup for the second half of 2025 remains strong, driven by AI-driven HBM and eSSD demand, and cyclical recovery in non-AI segments [4] - Synaptics highlights strong design win momentum for its Astra platform, WiFi capabilities, and Bluetooth Channel Sounding feature, with potential for new revenue opportunities in foldable phones and PCs [4] - Skyworks shows seasonal demand trends with iPhone 16 demand aligning with expectations and a return to 10% average radio frequency content growth [4] Product Launches - New product launches expected from Nvidia, Advanced Micro Devices, and Intel [4]