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Ansys (ANSS), TSMC & Microsoft to Advance 3D-IC Stress Analysis

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Ansys (ANSS - Free Report) announced a partnership with TSMC and Microsoft to develop a solution to analyze mechanical stress in multi-die 3D-IC systems produced using TSMC's 3DFabric advanced packaging.

This collaboration aims to address complex multiphysics requirements and ensure reliability for advanced designs. Ansys Mechanical runs efficiently on Microsoft Azure and facilitates quick analysis for intricate 2.5D/3D-IC systems. The goal is to tackle temperature-related stress that can damage connections within 3D-ICs, impacting their lifespan.

Ansys Mechanical, supported by Azure's high-performance computing infrastructure, scales up stress simulations effectively, which is crucial for analyzing growing semiconductor complexities. This collaboration aims to offer precise analysis results critical for designing robust 3D ICs using TSMC's latest 3DFabric technologies.

ANSYS, Inc. Price and Consensus

ANSYS, Inc. Price and Consensus

ANSYS, Inc. price-consensus-chart | ANSYS, Inc. Quote

The joint effort by Microsoft, Ansys and TSMC addresses multiphysics challenges, expediting time-to-market while reducing the risk of costly field failures in 3D-ICs due to thermal stress. The collaboration uses Azure's cloud resources and elastic computing capabilities to create an advanced solution flow for semiconductor design challenges.

ANSYS develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a spectrum of industries and academia.

The company reported third-quarter 2023 earnings of $1.41 per share, which beat the Zacks Consensus Estimate by 11.9%. The bottom line declined 20.3% year over year. Non-GAAP revenues of $458.8 million missed the Zacks Consensus Estimate by 1.7%. The top line decreased 3% (4% at constant currency or cc) from the year-ago quarter’s level.

ANSS now projects 2023 non-GAAP revenues in the range of $2,234-$2,284 million compared with the earlier prediction of $2,257-$2,327 million. Management expects non-GAAP operating margin to be between 41% and 42%.

Non-GAAP earnings are anticipated in the range of $8.34-$8.75 per share compared with the previous guidance of $8.39-$8.88.

ANSS currently carries a Zacks Rank #3 (Hold). Shares of ANSYS have risen 24.1% in the past year compared with the sub-industry’s growth of 50.4%.

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Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the broader technology space are Guidewire Software (GWRE - Free Report) , Flex (FLEX - Free Report) and Badger Meter (BMI - Free Report) , 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 Guidewire Software’s fiscal 2024 earnings per share (EPS) has increased 10.5% in the past 60 days to 74 cents. Shares of GWRE have rallied 47.1% in the past year.

The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of the company have risen 29.5% in the past year.

The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has improved 7.3% in the past 60 days to $3.07.

Badger Meter’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 10.3%. Shares of BMI have rallied 24.6% in the past year.

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