Synopsys, Inc. (SNPS - Free Report) recently announced that its Fusion Compiler RTL-to-GDSII implementation solution has been rolled out by Renesas Electronics Corporation to expedite 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.
Fusion Compiler’s build enables design teams to achieve optimal levels of power, performance and area, and ensures fastest time-to-results.
Tatsuji Kagatani, vice president of Broad-based Solution Business Unit, Renesas said, "Synopsys' Fusion Compiler consistently delivered superior power, performance, and full-flow productivity on our production tapeout designs. We are confident that this new Synopsys product will continue to be instrumental to achieving our ambitious goals and help us accelerate innovations for our advanced products."
On the same day of the announcement, Synopsys also brought its Subsystem Verification Solution, Verification IP, and UVM source code test suite to the market.
The two solutions have been designed to support the latest USB4 specification, which includes two-lane operation using the USB Type-C connector.
The company's shares have gained 22.9% in the past year, outperforming its industry's rally of 17.7%.
What’s Driving Synopsys?
Synopsys is gaining traction from a solid uptick across all product groups and geographies. Its sustained focus on introducing products, acquisitions and deal wins is likely to continue boosting results.
The company’s penetration into new and growing artificial intelligence chip companies is a major growth driver. Robust growth in software-based verification at both traditional semiconductor as well as emerging system companies focused on own in-house design is an upside.
Notably, Fusion Design Platform, launched last November, is witnessing high demand, which is helping it generate strong results. In the first quarter of fiscal 2019, Semiconductor & System Design revenues, constituting 90% of total revenues, were $737.9 million, up 5% year over year on the back of strength across the board.
After being in the market for just one quarter, the Fusion Compiler has rapidly boosted the number of active customers, including many of the top 10 SoC design companies. It was also presented with a World Electronics Achievement award for product of the year.
Although geopolitical challenges are an unrelenting concern, growing investments in critical chip and system designs by electronics companies is boosting the company’s confidence.
The latest forecast for worldwide IT spending by Gartner buoys optimism for Synopsys’ growth prospects. The research firm expects worldwide IT spending to reach $3.8 trillion in 2019, representing a 3.2% increase from the $3.7 trillion recorded last year. This bodes well for the company.
Zacks Rank & Other Key Picks
Synopsys currently carries a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader Computer and Technology sector are Fortinet Inc. (FTNT - Free Report) , eGain Corporation (EGAN - Free Report) , and Alteryx, Inc. (AYX - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Fortinet, eGain and Alteryx is projected to be 16.75%, 30% and 15.44%, respectively.
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