Core Insights - Synopsys experienced a significant stock decline of 18.2% in September, with a notable drop of 35% in early September due to disappointing third-quarter earnings [2] - The company operates in two segments: design automation, which includes EDA and the newly acquired Ansys, and design intellectual property (IP) [3][4] - The design automation segment saw a revenue increase of 23% year over year, while the design IP segment faced an 8% decline [4] Challenges Faced - CEO Sassine Ghazi identified three key factors negatively impacting the design IP segment, indicating that these issues are not expected to resolve in the near term [5] - Trade actions and weak demand from a major customer contributed to the company's poor performance, overshadowing the acquisition of Ansys [6] - Export restrictions imposed by the Trump administration disrupted design starts in China, affecting customer confidence [7] Future Outlook - Synopsys is currently facing challenges from a major foundry customer, potentially Intel, which has historically been a partner [9] - The stock showed some recovery following news of Nvidia's investment in Intel, suggesting potential positive developments ahead [9]