Synopsys lifts annual forecast on robust demand for AI chip design software
Chip design software firm Synopsys raised its annual revenue and earnings outlook, citing strong demand for tooling tied to AI accelerators. The company also expanded its share buyback authorisation by 3 billion dollars. Shares climbed more than 6 percent in after-hours trading.
Synopsys management said it closed the mid-year point with 17 percent organic growth and a 'record order book' tied to AI accelerator design. The annual revenue range was raised to 6.82 to 6.89 billion dollars and adjusted earnings per share to 14.15 to 14.35 dollars. The company also authorised an additional 3 billion dollars in share repurchases.
According to Investing.com Americas, the updated guidance came in 'above the Wall Street consensus'. Synopsys highlighted design flows supporting NVIDIA's custom accelerators and the in-house silicon programmes at Apple, Google and Microsoft. Management said recent US-China export-control updates had 'limited direct impact' but acknowledged the spillover uncertainty around China engagements.
The signal can be read as positive for rivals Cadence and Siemens EDA, but analysts flag a 'customer concentration risk' tied to bespoke contracts at Synopsys. Investors will await the second-quarter report due on 1 July; the key pressure point will be the rate at which licensed revenue converts into recognised sales. This article is not investment advice.
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