Synopsys Stock Soars To a Record High as AI Boom Drives Bullish Outlook, Earnings Beat

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Bill McColl
Bill McColl
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Published February 22, 2024
Synopsys sign at HQ in California

Smith Collection/Gado / Contributor / Getty Images 

Key Takeaways

  • Synopsys shares surged to an all-time high Thursday, after the software firm posted better-than-expected first-quarter results and guidance on the back of the AI boom. 
  • The Sunnyvale, Calif.-based company projected adjusted earnings per share for the current quarter ranging between $3.09 and $3.14.
  • CEO Sassine Ghazi credited customers' spending on AI for the bullish numbers.

Synopsys Inc. (SNPS) shares surged to an all-time high Thursday, after the software firm posted better-than-expected first-quarter results and guidance on the back of the boom in demand for artificial intelligence (AI) products.

The maker of chip-design software reported adjusted earnings per share (EPS) of $3.56 after the bell Wednesday, beating analysts' forecasts.

Quarterly revenue in its fiscal first quarter, which ended January, rose to $1.65 billion, up about 21% year over year.

The Sunnyvale, Calif.-based company projected adjusted earnings per share for the current quarter ranging between $3.09 and $3.14.

"AI continues to drive our customers' investments in silicon and systems that position them for future growth," Synopsys president and CEO Sassine Ghazi said.

Synopsys announced a $35 billion acquisition of simulation software company Ansys (ANSS) last month.

Synopsys makes software that engineers use to design and test silicon chips, with its customers including chipmakers Nvidia (NVDA)  and Intel (INTC).

Synopsys shares were up 7% at $581.26 each at 2:03 p.m. ET Thursday. They are more than 60% higher in the past year.

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  1. Synopsys. “Synopsys Posts Financial Results for First Quarter Fiscal Year 2024.”

  2. Reuters. “Synopsys expects strong second quarter on AI-powered chip design demand.”

  3. WSJ. “Big Design-Software Companies Near $35 Billion Deal.”

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