Synopsys (SNPS) and Intel Collaborate for Design Flows & IP
Synopsys SNPS recently revealed that its digital and custom design flows are certified for the Intel Corporation’s INTC Intel Foundry Services (“IFS”) Intel 16 process. Synopsys Electronic Design Automation digital and custom design flows and intellectual property (IP) will enhance power, performance and area for advanced chips, minimizing integration risk on Intel 16 process.
The Synopsys solutions will ensure development of secure advanced microelectronics through the IFS Accelerator Ecosystem that include United States Military, Aerospace and Government Alliance. It will allow customers to beat design targets for advanced mobile, radio frequency, internet of things, consumer, storage and military, aerospace and government applications with confidence. The enhanced Synopsys digital and custom design flows will ensure efficient routing and optimization of smaller chip area while reducing power consumption.
The company has been benefiting from strong design wins owing to a robust product portfolio. Its penetration into new and growing artificial intelligence chip companies is a major growth driver. With the increasing need for enhanced security measures, considering the rising security threats in interconnected systems laden with software, demand for Synopsys’ solutions is shooting up. Robust growth in software-based verification at both traditional semiconductor and emerging system companies focused on its own in-house design is an upside.
Synopsys, Inc. Price and Consensus
Synopsys, Inc. price-consensus-chart | Synopsys, Inc. Quote
In June, Synopsys expanded agreement with Samsung Foundry to develop a broad portfolio of IP that will lower design risk and accelerate silicon success for automotive, mobile, high-performance computing and multi-die designs.
In May, the company signed an agreement with Massachusetts-based Software Supply Chain Security (SSCS) platform provider, ReversingLabs. Per the deal, Synopsys is now authorized to resell ReversingLabs’ SSCS Platform with its Software Integrity Group’s Black Duck solution.
In April, SNPS reinforced its collaboration with Taiwan Semiconductor Manufacturer Company and Ansys for the design and manufacture of multi-die systems. Multi-die systems integrate heterogeneous dies in a single package, providing a path for designers to efficiently deliver innovative products with unprecedented functionality. By reusing proven dies, designers reduce risks, accelerate time to market and rapidly create new product variants with optimized system power and performance.
In a separate deal, in the same month, Synopsys introduced first-of-its-kind ZeBu Server 5 emulation system. It can deliver up to 30 billion gates capacity, two times higher throughput and improved energy use with less than half power consumption compared with its predecessor.
In second-quarter fiscal 2023, the Synopsys Design IP segment reported revenues of $335.2 million, representing 24% of revenues. Total revenues jumped 9.1% year over year to $1.4 billion in the last quarter. For third-quarter fiscal 2023, the Zacks Consensus Estimate for revenues is pegged at $1.48 billion, which suggests an increase of 18.7%.
Zacks Rank & Other Key Picks
Synopsys and Intel currently carry a Zacks Rank #2 (Buy) each. Shares of SNPS have gained 44.8%, while that of INTC have dropped 10.5%, over the past year.
Some other top-ranked stocks from the broader Computer and Technology sector are Salesforce CRM and NVIDIA Corporation NVDA, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Salesforce’s second-quarter fiscal 2024 earnings has been revised northward by a penny to $1.90 per share over the past 30 days. For fiscal 2024, earnings estimates have moved up by 2 cents to $7.44 in the past 30 days.
CRM's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 15.5%. Shares of the company have gained 35.3% in the past year.
The Zacks Consensus Estimate for NVIDIA’s second-quarter fiscal 2024 earnings has been revised northward from $1.04 to $2.04 per share over the past 60 days. For fiscal 2024, earnings estimates have moved up by 2 cents to $7.66 in the past 30 days.
NVDA's earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 0.26%. Shares of the company have climbed 179.7% in the past year.
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