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SUNNYVALE, Calif. - Synopsys (NASDAQ:SNPS), a $109.5 billion market cap software giant with a "GOOD" financial health rating according to InvestingPro, announced on Wednesday expanded generative AI capabilities for its semiconductor design solutions through its Synopsys.ai Copilot, aiming to accelerate development timelines and support more complex designs amid industry workforce shortages.
The expanded AI capabilities have demonstrated significant productivity gains in early customer trials, with workflows reportedly accelerating from days to hours and hours to minutes, according to a company press release.
The enhanced Synopsys.ai Copilot includes both assistive and creative generative AI capabilities. Customers using the knowledge assistant feature reported 30% faster ramp time for early-career engineers, while the workflow assistant application improves time to solutions for scripts by two times on average, and up to 10-20 times faster when used with Synopsys PrimeTime.
In the creative AI domain, a leading AI infrastructure solutions provider observed a 35% boost in engineering productivity within formal verification workflows, enabling the validation of 10 design components in 10 days.
Sanjay Bali, Senior Vice President of Strategy and Product Management at Synopsys, said, "AI is revolutionizing every layer of chip design and fueling a wave of ingenuity to deliver the next generation of advanced SoCs."
The company also announced that Ansys, now part of Synopsys, has introduced Ansys Engineering Copilot, a virtual assistant designed to shorten learning curves and increase productivity when using Synopsys simulation tools.
Additionally, Synopsys is developing AgentEngineer technology in collaboration with Microsoft, with the first prototype recently showcased at DAC 2025. This technology aims to introduce progressive levels of autonomous execution in engineering workflows.
The Synopsys.ai knowledge assistant application is now available for all Synopsys Cloud users on both SaaS and Bring Your Own Cloud deployments. With the company’s next earnings report due on September 9th, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access 16 additional ProTips and comprehensive financial metrics through InvestingPro’s detailed research report.
In other recent news, Synopsys has announced the completion of its acquisition of Ansys, a move that expands its engineering solutions capabilities. This transaction, initially announced in January 2024, combines Synopsys’ silicon design expertise with Ansys’ simulation and analysis strengths, positioning the new entity in a $31 billion market. As Synopsys prepares to report its third-quarter earnings on September 9, the results will reflect the integrated financials of the combined company. Analysts at KeyBanc and Piper Sandler have both raised their price targets for Synopsys to $660, maintaining an Overweight rating. Meanwhile, Goldman Sachs has reiterated its Buy rating, setting a higher price target of $700, while acknowledging potential volatility due to the Ansys integration.
Needham also increased its price target for Synopsys to $660 following China’s conditional approval of the Ansys acquisition. Despite previous concerns about China EDA export controls, Goldman Sachs notes that investor sentiment remains slightly positive. These developments indicate a strategic expansion for Synopsys, with analysts generally optimistic about the company’s future performance.
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