Core Viewpoint - HSBC downgraded Synopsys from Buy to Hold, setting a price target of $455 due to anticipated challenges in fiscal 2026 driven by geopolitical uncertainty and Intel's foundry operations affecting the Electronic Design Automation (EDA) business [1] Group 1: Financial Performance and Projections - Fiscal 2026 is expected to be a transitional year for Synopsys, influenced by external factors that may impact revenue [1] - The EDA segment represented over 60% of total revenue in fiscal 2025, highlighting its significance to the company's financial health [1] Group 2: Growth Outlook - Growth in the Design IP segment is expected to be muted compared to the company's long-term mid-teens growth outlook as management shifts focus towards artificial intelligence opportunities [2] - The lack of clear near-term catalysts contributed to the decision to lower the rating to Hold [2]

Core Insights - Cadence Design Systems (CDNS) is positioned to benefit from the increasing complexity of chip and system design in the AI era, highlighting the growing demand for advanced electronic design automation (EDA), verification tools, and high-performance intellectual property (IP) [1] Industry Summary - The need for sophisticated EDA tools is expanding as the complexity of electronic systems rises, particularly in the context of artificial intelligence [1]

Corporate Overview for Investors December 2025 Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, statements regarding Synopsys, Inc.'s (Synopsys, we or our) short-term and long-term financial targets, expectations and objectives; our businesses, business segments, strategies, partnerships, initiatives and opportunities, including, among other things, the reallocation of resources in our Design IP segment to higher growth opportunities and planne ...

Core Insights - Synopsys (SNPS) shares experienced a significant decline of nearly 36% on September 10, marking the worst one-day drop since the company's IPO, following disappointing Q3 results and weak guidance for the future [1][4] - The company reported Q3 fiscal 2025 revenue of $1.7 billion, reflecting a 14% year-over-year increase, but non-GAAP earnings per share of $3.39 fell short of expectations and slightly decreased from $3.43 in the same period last year [6] - Concerns were raised regarding U.S. export restrictions impacting the semiconductor market in China, which is the largest market for semiconductors [1] Financial Performance - The stock price of Synopsys has seen a dramatic decline, down 26% from its 52-week high of $651.73 reached on July 30, and currently down 1% year-to-date [4] - The stock trades at 54.67 times forward earnings, which is above the sector median, indicating a premium valuation despite recent performance issues [5] Market Activity - Despite the sharp decline in stock price, Cathie Wood's ARK Invest purchased approximately 15,742 shares of Synopsys on September 10, investing around $9.5 million, suggesting a belief in the long-term potential of the company amid broader trends in semiconductor design and AI [2]