Synopsys Stock: Is SNPS Underperforming the Technology Sector?

Core Insights - Synopsys, Inc. is a leader in electronic design automation software and semiconductor intellectual property, with a market cap of $76.1 billion, enabling engineers to create complex integrated circuits and system-on-chips for various applications [1][2] Company Performance - Synopsys is classified as a large-cap stock, benefiting from long-term structural tailwinds in the semiconductor industry due to increasing demand for smaller, faster, and more energy-efficient chips [2] - The company has experienced a significant decline in share price, down 37.1% from its 52-week high of $651.73 and 31.1% over the past three months, underperforming the Technology Select Sector SPDR Fund's 7.9% rise [3][4] - Over the past 52 weeks, Synopsys shares have fallen 26%, lagging behind the XLK's 20.9% increase, and are down 15.6% year-to-date compared to XLK's 22.1% return [4] Financial Results - In Q3, Synopsys reported total revenue of $1.7 billion, a 14% year-over-year increase, but missed analyst expectations by 1.7%. Adjusted EPS of $3.39 declined 1.2% from the previous year and fell 11.7% short of Wall Street estimates [5] - The company's performance has notably underperformed its rival, Cadence Design Systems, which saw a 1.2% drop over the past 52 weeks and a 2% rise year-to-date [6]