Synopsys, Inc. (SNPS - Free Report) is benefitting from a strong uptick across all product groups plus large and expanded renewals with some key semiconductor companies. The company’s penetration into new and growing artificial intelligence (AI) chip companies is a major growth driver.
Further, with the growing need for enhanced security measures given the worsening security threats in interconnected systems laden with software, demand for the company’s solutions is shooting up.
Notably, the company’s investments in this high-growth market are helping it diversify its customer base in financial services and medical segments apart from extending its reach in the automotive and ramping up business with well-established electronics clients.
Growth across AI and automotive sectors is driving demand for the company’s IP products.
Expanding Efforts Bode Well
Recently, Synopsys partnered with GLOBALFOUNDRIES to develop a portfolio of IPs that will support high temperature operation on the latter’s 22-nm Fully-Depleted Silicon-On-Insulator (22FDX) technology.
The IP will help designers ease their design efforts and expedite the AEC-Q100 qualification of SoCs for automotive applications like eMobility, 5G connectivity, advanced driver assistance systems (ADAS) and infotainment.
Moreover, Fusion Design Platform, launched last November, is witnessing steep demand, which is aiding it to generate solid results. A strong progress in the company’s fusion technology and platform roll-out is driving EDA (Electronic design automation) revenues, which in turn, is boosting its top line.
The company recently announced that its Fusion Compiler RTL-to-GDSII implementation solution has been unveiled by Renesas Electronics Corporation to accelerate the development of the latter’s next-generation automotive designs. The Fusion Compiler will power Renesas’ high-performance automotive system-on-chips (SoCs) and mission-critical microcontrollers.
In the current economic scenario, as customers are strengthening their supplier relations and focusing on cost efficiencies, many have selected Synopsys as their primary EDA partner. Connections with companies, such as Advanced Micro Devices (AMD - Free Report) , Juniper Networks (JNPR - Free Report) , Realtek, Teradici, NetLogic Microsystems, Toshiba and Wolfson stand as a clear evidence.
Notably, the newly-introduced updated version of Synopsys’ IC Validator NXT has already been successfully deployed in the cloud by multiple customers to address their dynamic tapeout schedules.
However, the company faces a tough competition from EDA vendors, namely Cadence Design Systems (CDNS - Free Report) and Mentor Graphics Corporation, which is n overhang on the company.
Zacks' Top 10 Stocks for 2019
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This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Synopsys, Inc. (SNPS - Free Report) is benefitting from a strong uptick across all product groups plus large and expanded renewals with some key semiconductor companies. The company’s penetration into new and growing artificial intelligence (AI) chip companies is a major growth driver.
Further, with the growing need for enhanced security measures given the worsening security threats in interconnected systems laden with software, demand for the company’s solutions is shooting up.
Notably, the company’s investments in this high-growth market are helping it diversify its customer base in financial services and medical segments apart from extending its reach in the automotive and ramping up business with well-established electronics clients.
Growth across AI and automotive sectors is driving demand for the company’s IP products.
Expanding Efforts Bode Well
Recently, Synopsys partnered with GLOBALFOUNDRIES to develop a portfolio of IPs that will support high temperature operation on the latter’s 22-nm Fully-Depleted Silicon-On-Insulator (22FDX) technology.
The IP will help designers ease their design efforts and expedite the AEC-Q100 qualification of SoCs for automotive applications like eMobility, 5G connectivity, advanced driver assistance systems (ADAS) and infotainment.
Moreover, Fusion Design Platform, launched last November, is witnessing steep demand, which is aiding it to generate solid results. A strong progress in the company’s fusion technology and platform roll-out is driving EDA (Electronic design automation) revenues, which in turn, is boosting its top line.
The company recently announced that its Fusion Compiler RTL-to-GDSII implementation solution has been unveiled by Renesas Electronics Corporation to accelerate the development of the latter’s next-generation automotive designs. The Fusion Compiler will power Renesas’ high-performance automotive system-on-chips (SoCs) and mission-critical microcontrollers.
In the current economic scenario, as customers are strengthening their supplier relations and focusing on cost efficiencies, many have selected Synopsys as their primary EDA partner. Connections with companies, such as Advanced Micro Devices (AMD - Free Report) , Juniper Networks (JNPR - Free Report) , Realtek, Teradici, NetLogic Microsystems, Toshiba and Wolfson stand as a clear evidence.
Notably, the newly-introduced updated version of Synopsys’ IC Validator NXT has already been successfully deployed in the cloud by multiple customers to address their dynamic tapeout schedules.
However, the company faces a tough competition from EDA vendors, namely Cadence Design Systems (CDNS - Free Report) and Mentor Graphics Corporation, which is n overhang on the company.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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