Synopsys SNPS is collaborating with Siemens PLM Software to jointly develop a wide range of electronic design automation (EDA) product interoperability projects.
EDA is a category of tools used to analyze semiconductor devices. Many chip designers and manufacturers are opting for EDA, attracted by the reduced cost, errors and design time associated with its adoption.
The increasing demand for EDA solutions are driven by growth in fast growing fields of cloud computing, Artificial Intelligence (AI), Internet of Things (IoT) and smart wearable devices. Collaboration to Boost Customer Base
The synergistic collaboration between Synopsys and Siemens encompasses EDA domains from design to verification.
The latest collaboration will help Synopsys address the needs of semiconductor and system-on-chip (SoC) manufacturing firms, which comprises the majority of its clientele. Moreover, the joint solution will enhance customers' digitization efforts.
Further, the collaboration will ensure more effective EDA solutions for mutual customers.
Notably, one major competitor of Synopsys was Mentor Graphics, which was recently acquired by Siemens. The companies have also settled all outstanding patent litigations
Hence, we believe the collaboration with Siemens on EDA product interoperability solutions bodes well for Synopsys, as it will expand its penetration in the market.
Synopsys, Inc. Revenue (TTM)
Synopsys, Inc. Revenue (TTM) | Synopsys, Inc. Quote
Extended Partner Base, New Solutions to Drive Growth
We believe Synopsys will benefit from its expanding partner base. The company's extended relationships with the likes of AMD, Juniper, Realtek, Teradici, NetLogic Microsystems, Toshiba and Wolfson will continue to boost its top-line growth.
Synopsys also collaborated with ARM Holdings plc which is expected to optimize the performance of its processors.
The company is positive about its EDA design solutions which are helping in designing of new AI engines. The newly launched Fusion Technology has gained accolades from the Samsung, STMicroelectronics, Toshiba, and ANSYS.
Further, strategic acquisitions have expanded the company's presence in the intensely competitive EDA market.
Zacks Rank and Stocks to Consider
Synopsys currently carries a Zacks Rank #3 (Hold).
Some stocks worth considering in the broader Computer and Technology sector are Adobe ADBE , YY YY , and Verint VRNT . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth for Adobe, YY and Verint is projected to be 16.20%, 26.43% and 10%, respectively.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report YY Inc. (YY): Free Stock Analysis Report Adobe Systems Incorporated (ADBE): Free Stock Analysis Report Synopsys, Inc. (SNPS): Free Stock Analysis Report Verint Systems Inc. (VRNT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research