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SUNNYVALE, Calif. - Synopsys, Inc. (NASDAQ:SNPS), a $90.6 billion market cap software giant currently trading above its InvestingPro Fair Value, unveiled a digital twin racetrack experience at the Aramco STEM Racing World Finals in Singapore, with plans to release an enhanced version for the 2025-2026 STEM Racing season.
The technology, developed by Synopsys-owned Ansys, creates a virtual environment where students can test the aerodynamics of miniature F1 cars using computational fluid dynamics (CFD) methods. The system combines Ansys Discovery software with NVIDIA Omniverse libraries to create a digital replica of the physical racetrack. With impressive gross profit margins of 81% and annual revenue exceeding $6.4 billion, Synopsys continues to demonstrate its leadership in the software industry. (InvestingPro offers 13 additional key insights about Synopsys’ financial performance.)
A simplified version of the technology is being demonstrated at the World Finals running from September 27 to October 2, allowing students to modify basic parameters of their race cars to understand performance impacts. The more advanced version, scheduled for release next season, will enable teams to upload custom car designs and conduct detailed CFD analysis.
"Synopsys’ specialized simulation & analysis tools have already transformed the way our student teams approach STEM learning," said Andrew Denford, founder and chairman at STEM Racing, in the press release statement.
As the exclusive global CFD simulation partner for STEM Racing, Synopsys provides complimentary access to simulation software, educational resources, and technical support to over 400,000 students across 65 countries. These students compete in teams to design and race miniature F1 cars.
The initiative builds on a recent agreement between NVIDIA and Synopsys, under which Synopsys will license, sell, and support Omniverse libraries embedded in its simulation and analysis solutions.
Before each major race in the upcoming season, demo days will give students access to the advanced workflow, allowing them to gain predictive insights into physical performance to refine their designs. For detailed analysis of Synopsys’ growth trajectory and investment potential, including exclusive Fair Value calculations and financial health scores, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Synopsys announced its collaboration with TSMC to enhance chip design solutions, focusing on advanced manufacturing processes. This collaboration includes certification of Synopsys’ Ansys portfolio for use with TSMC’s cutting-edge technologies like N3C, N3P, N2P, and A16, facilitating precise final checks on chip designs. Additionally, the companies are working on AI-assisted design flows for TSMC’s COUPE platform, aimed at speeding up development in AI and high-speed data communications. Synopsys and TSMC have also expanded their partnership to deliver multi-die solutions, supporting advanced processes and packaging technologies, which have already resulted in multiple customer tape-outs.
In terms of financial analysis, Piper Sandler, KeyBanc, and Needham have all lowered their price targets for Synopsys, citing various concerns. Piper Sandler adjusted its target to $630, referencing headwinds in Synopsys’ intellectual property business. KeyBanc reduced its target to $590, describing the company’s fiscal third-quarter performance as "messy and underwhelming." Needham further lowered its target to $550, pointing to a "mixed quarter" and IP business weaknesses. Despite these adjustments, all three firms maintained positive ratings on Synopsys, with Piper Sandler and KeyBanc retaining an Overweight rating, and Needham a Buy rating.
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