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]