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SUNNYVALE, Calif. - Synopsys, Inc. (NASDAQ:SNPS), a prominent player in the software industry with a market capitalization of $78.26 billion, has demonstrated successful interoperability between its PCIe 6.x IP solution and Broadcom’s PEX90000 series switch, the company announced today. According to InvestingPro data, Synopsys maintains impressive gross profit margins of 81.4%, reflecting its strong market position.
The demonstration, operating at 64 GT/s, showcases compatibility between the two companies’ PCIe 6.x technologies, which are designed for high-performance computing and AI data center systems. This development aligns with Synopsys’s growth trajectory, as the company has achieved 7.5% revenue growth over the last twelve months.
According to the announcement, PCIe switches are essential components in next-generation AI infrastructures, enabling the scalability needed for modern AI workloads. The interoperability testing included Synopsys’ PCIe 6.x IP solution with PHY and controller components operating as both root complex and endpoint with Broadcom’s switch.
"Our successful interoperability with Broadcom’s PCIe 6.x switch demonstrates the readiness of Synopsys’ PCIe 6.x IP solution to address the rigorous performance and scalability requirements of high-performance computing and AI-driven data center applications," said Neeraj Paliwal, senior vice president of IP product management at Synopsys.
Dan Roehrich, vice president of IC Development at Broadcom’s Data Center Solutions Group, noted that the milestone "represents a significant step forward in enabling the industry to meet the challenges of modern AI and HPC workloads."
Synopsys is showcasing this interoperability demonstration at the PCI-SIG DevCon 2025 event taking place today and tomorrow. The company reports it has completed more than 100 PCIe 6.x IP implementations across various applications.
The complete Synopsys PCI Express IP solutions are currently available across all generations of PCIe on multiple process nodes, according to the press release statement. While InvestingPro analysis suggests the stock is currently trading above its Fair Value, investors can access comprehensive analysis and 16 additional ProTips about Synopsys through the platform’s detailed Pro Research Report, part of its coverage of over 1,400 US equities.
In other recent news, Synopsys, Inc. announced the suspension of its financial guidance for the third quarter and the full fiscal year 2025 due to new export restrictions related to China. The company had initially projected third-quarter revenue between $1.755 billion and $1.785 billion, with non-GAAP earnings per share expected to range from $3.82 to $3.87. Synopsys had also reaffirmed its full-year 2025 revenue guidance of $6.745 billion to $6.805 billion before this suspension. Despite these challenges, the company reported strong second-quarter results with adjusted earnings per share of $3.67, surpassing analyst estimates, and revenue reaching $1.604 billion. Analyst firms have responded to these developments, with Stifel maintaining a Buy rating and a $550 price target, while KeyBanc and BofA Securities have set a price target of $575. Synopsys is also working on finalizing the acquisition of Ansys, expected within the first half of the year, amid ongoing discussions in China. The company has not received any official notice from the Bureau of Industry and Security regarding the new export restrictions, although there are expectations of potential impacts on its China business. Despite these uncertainties, Synopsys remains focused on growth in other regions and sectors, such as intellectual property and hardware.
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