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SUNNYVALE, Calif. - Synopsys Inc. (NASDAQ:SNPS), a technology leader with robust financials including $6.07 billion in revenue and an impressive 81.35% gross profit margin, announced significant advancements in chip design speeds, leveraging the NVIDIA Grace Blackwell platform to potentially accelerate circuit simulation by up to 30 times. According to InvestingPro analysis, the company maintains strong financial health with more cash than debt on its balance sheet. The announcement was made at the global AI conference GTC, where Synopsys revealed its collaboration with NVIDIA to optimize a full-stack EDA suite, impacting design, verification, and manufacturing processes.
The partnership aims to harness the NVIDIA GB200 Grace Blackwell Superchip, alongside NVIDIA CUDA-X libraries, to achieve substantial performance gains. Synopsys’ PrimeSim circuit simulation is expected to see the most significant speedup, with up to a 30x increase, while computational lithography simulations using Synopsys Proteus could accelerate by up to 20x. With a market capitalization of $69.35 billion and consistent revenue growth of 8.51% over the last twelve months, Synopsys continues to demonstrate its market leadership. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with 15 additional exclusive insights available to subscribers. Additionally, the integration of NVIDIA NIM inference microservices is anticipated to double the speed-to-information with the generative AI-powered Synopsys.ai Copilot.
Sassine Ghazi, president and CEO of Synopsys, emphasized the critical role of their technology in enhancing the productivity and capabilities of engineering teams. Jensen Huang, founder and CEO of NVIDIA, highlighted the complexity of chip design and the transformative potential of the collaboration to advance the AI revolution.
Synopsys plans to optimize more than 15 of its solutions for the NVIDIA Grace CPU architecture in 2025, furthering the multi-year effort to accelerate EDA workloads. The accelerated computing architectures are set to improve runtime for various workflows, such as Technology Computer-Aided Design (TCAD), physical verification, and materials engineering.
The company is showcasing these advancements at GTC 2025, which runs from March 18th through 21st, and will present sessions on semiconductor manufacturing, materials engineering, and AI-driven chip design.
This progress in chip design technology is based on a press release statement from Synopsys, which continues to partner closely with semiconductor and systems customers to maximize R&D capability and drive innovation.
In other recent news, Synopsys Inc. reported a strong performance for the first quarter of fiscal year 2025, surpassing Wall Street expectations with earnings per share (EPS) of $3.03, exceeding the forecast of $2.79, and generating revenue of $1.46 billion, slightly above the anticipated $1.45 billion. The company also announced that its proposed $35 billion acquisition of Ansys has cleared the initial review phase by the UK Competition and Markets Authority, with the transaction expected to be finalized in the first half of 2025. Synopsys has filed additional documentation with the Securities and Exchange Commission, including audited financial statements of Ansys, to support the merger process. Analyst firm Stifel maintained a Buy rating for Synopsys, with a price target of $620, following the company’s favorable earnings report. Despite a decline in China-based revenue, Stifel anticipates stabilization in the region. Synopsys is making progress with regulatory approvals for the Ansys acquisition in other jurisdictions, including China, and expects the merger to enhance its market position by integrating Ansys’ engineering simulation software.
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