Ansys and Baker Hughes achieve CFD milestone with AMD GPUs

PITTSBURGH - Ansys (NASDAQ: ANSS), a technology powerhouse with a market capitalization of $27.75 billion and impressive gross profit margins of 92.48%, has partnered with energy technology company Baker Hughes to achieve a significant milestone in computational fluid dynamics (CFD) by running the largest commercial Fluent CFD simulation to date. According to InvestingPro, the company maintains strong financial health with robust liquidity metrics, positioning it well for continued innovation investments. The simulation, which involved a 2.2-billion-cell axial turbine stator, was powered by 1,024 AMD Instinct MI250X graphics processing units (GPUs) on the Frontier exascale supercomputer at Oak Ridge National Laboratory.

This collaboration has reportedly reduced simulation run time by 96%, from 38.5 hours to just 1.5 hours, compared to traditional methods that use over 3,700 CPU cores. The breakthrough demonstrates the transformative potential of leveraging GPUs on exascale supercomputing systems to accelerate computations and enable rapid iterations. These advancements are expected to shorten design-to-market timelines for high-performance machinery across various applications, including turbine engines, power generation, and mechanical drives. The company’s commitment to innovation is reflected in its solid 12.11% revenue growth over the last twelve months.

By utilizing the Frontier exascale supercomputer, maintained by the Department of Energy’s Oak Ridge National Laboratory, the partners have provided insights into aerothermal physics at large operating pressures that were previously unattainable. The success of this simulation is a testament to the power of combining advanced hardware with leading multiphysics simulation software.

The use of Ansys Fluent, a fluid simulation software, supports Baker Hughes in the design of next-generation gas turbines and turbomachinery equipment. The goal is to improve energy conversion efficiency and reduce carbon footprints. The advancements in the Fluent GPU solver also extend benefits to small and medium-sized businesses (SMBs), enabling them to achieve high-fidelity simulations without the need for exascale resources.

Brad McCredie, senior vice president of Data Center Engineering at AMD, stated that this collaboration showcases how cutting-edge supercomputing can address some of the most challenging engineering problems, leading to efficiency, sustainability, and innovation breakthroughs.

Shane Emswiler, senior vice president of products at Ansys, emphasized the importance of working with hardware partners like AMD to provide robust infrastructure that empowers customers to conduct complex simulations with minimal constraints.

This development is based on a press release statement and marks a significant step forward in the field of computational simulation, with potential implications for the development of sustainable technologies and products. With a current ratio of 3.01 and moderate debt levels, Ansys maintains the financial flexibility needed to pursue such groundbreaking innovations. InvestingPro analysis reveals 13 additional key insights about Ansys’s financial position and growth prospects, available to subscribers.

In other recent news, Ansys has reported robust fourth-quarter earnings, with a 10% year-over-year increase in revenue, reaching $882.2 million, which surpassed expectations. The company’s operating margins also exceeded forecasts, coming in at 53% against an anticipated 51%. Ansys achieved a 13% revenue growth in constant currency for fiscal year 2024 and maintained strong performance despite challenging macroeconomic conditions. The company’s annualized contract value showed a significant 16% year-over-year increase in constant currency, driven by strong growth in key sectors such as High-Tech, Aerospace & Defense, and Automotive.

Additionally, the United Kingdom’s competition regulator has approved Synopsys’ $35 billion acquisition of Ansys, after addressing initial concerns about innovation and pricing. This acquisition is expected to expand Synopsys’ product offerings and is anticipated to be completed in the first half of 2025. Meanwhile, Citi has raised its price target for Ansys to $371, citing strong fourth-quarter performance, although it maintains a Neutral rating due to regulatory concerns related to the acquisition.

Rosenblatt Securities also increased its price target to $340, reflecting the company’s strong Q4 results and consistent business execution despite the pending acquisition. Furthermore, Ansys has announced a collaboration with NVIDIA to enhance cardiovascular research using AI, simulation, and visualization technologies. This partnership aims to make high-fidelity simulation more accessible in the healthcare sector, demonstrating Ansys’s commitment to innovation.

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