Core Insights - Goldman Sachs recently initiated coverage on several US digital semiconductor and EDA software companies, highlighting significant investment opportunities in commercial and custom chips as well as EDA suppliers within AI-related capital expenditures [1][2] Group 1: Investment Ratings - The analyst team, led by James Schneider, assigned buy ratings to four companies: Nvidia (NVDA.US) with a target price of $185, Broadcom (AVGO.US) at $315, Cadence Design Systems (CDNS.US) at $380, and Synopsys with a target price of $620 [1] - For AMD (AMD.US), Arm (ARM.US), and Marvell Technology (MRVL.US), the target prices are set at $140, $160, and $75 respectively, maintaining a neutral rating [1] Group 2: Market Trends and Dynamics - Current AI infrastructure capital expenditures have surpassed $350 billion, indicating early signs of revenue growth and cost optimization that support ongoing investments [1] - The semiconductor market and technology leadership landscape are undergoing rapid restructuring, driven by the balance demand for advanced model training and low-cost inference [1] Group 3: EDA Software and Chip Design - The shift from traditional client/server architecture to cloud computing and generative AI is increasing system complexity and multi-chip integration needs, thereby enhancing the value of EDA software [2] - Although the custom chip sector is in its early development stage with limited market share, scale effects will benefit leading companies [2] Group 4: Geopolitical Factors - Geopolitical influences are identified as core variables affecting the semiconductor industry, with emerging sovereign infrastructure demands from China and other regions creating new opportunities to mitigate geopolitical uncertainties [2] - Goldman Sachs maintains an optimistic outlook on the long-term development prospects of AI, suggesting that current technological iterations and capital investments will create sustained growth opportunities for companies with technological barriers and ecosystem advantages [2]

Core Viewpoint - Siemens AG has received notification from the U.S. government that export restrictions on chip design software to China have been lifted, allowing the company to fully restore access to its software and technology for Chinese customers [1] Group 1: Company Actions - Siemens has resumed full access to its electronic design automation (EDA) software and technology for Chinese customers following the U.S. Department of Commerce's notification [1] - The company has restored sales and technical support services to its Chinese clients in compliance with applicable export control laws and regulations [1] Group 2: Regulatory Changes - The U.S. Bureau of Industry and Security (BIS) informed Siemens that the export control restrictions previously applicable to the company's EDA software and technology are no longer in effect as of May 23 [1] - The specific export control classification numbers (ECCNs) for the software and technology that have been restored are 3D991 and 3E991 [1]

Core Viewpoint - Synopsys (SNPS.US) reported better-than-expected Q2 results for fiscal year 2025, but its stock experienced volatility due to ongoing concerns over U.S. export restrictions [1][3] Financial Performance - Q2 Non-GAAP diluted earnings per share were $3.67, a year-over-year increase of approximately 22.33%, exceeding market expectations [1] - Revenue for Q2 reached $1.604 billion, up 10.28% year-over-year, surpassing the anticipated $1.599 billion [1] - Revenue breakdown: Automation Design segment generated $1.122 billion, while the IP Design segment brought in $482 million [1] Analyst Ratings and Outlook - Wells Fargo maintains a "Hold" rating on Synopsys with a target price of $520, noting a "clean" earnings report ahead of the planned acquisition of ANSYS (ANSS.US) [1] - Morgan Stanley holds an "Overweight" rating with a target price of $590, highlighting that Q2 sales met expectations and earnings outperformed, although Q3 guidance was weaker than anticipated [3] - Analysts express confidence in Synopsys's ability to complete the acquisition of ANSYS in H1 2025 despite geopolitical tensions [3] Market Conditions and Challenges - The U.S. Federal Trade Commission (FTC) is requiring Synopsys and ANSYS to divest certain assets to facilitate their $35 billion merger [2] - Reports indicate that the U.S. Department of Commerce has requested EDA companies to halt sales to China, creating market uncertainty [3][4] - Despite a soft demand in the non-AI market, there are signs of stabilization in the industrial and automotive sectors [3]