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Synopsys Powers Groq Processor, Expands in AI Chip Market
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Synopsys, Inc.’s (SNPS - Free Report) ZeBu Server 4 product is generating a broad-based adoption by customers’ designing storage, networking and AI chips. Recently, the company announced that Groq has adopted the ZeBu Server 4 emulation solution to develop its Tensor Streaming Processor (TSP).
ZeBu server enables software developers to run numerous software cycles required to support complex new software stacks on various gate designs. The ZeBu Server 4 has already optimized and validated Groq's TSP architecture prior to silicon, resulting in a powerful performance for throughput and latency.
Notably, in November last year, Synopsys announced a multi-year agreement with Advanced Micro Devices (AMD - Free Report) to utilize the ZeBu Server 4 emulation system. As part of this new agreement, Synopsys will optimize its ZeBu and VCS software for execution on AMD EPYC processor-based servers.
Synopsys’ penetration into new and growing AI chip companies is a major growth driver. Further, with the growing need for enhanced security measures, considering the rising security threats in interconnected systems laden with software, demand for the company’s solutions is shooting up.
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.
Rajiv Maheshwary, vice president of marketing and business development in the Verification Group, Synopsys, said, "We continue to see momentum at AI chip companies requiring emulation solutions with high-performance, capacity, and reliability to verify multi-billion gate chips".
Product Strength: A Catalyst
Synopsys is benefiting from increasing global design activity and customer engagements. Its penetration into new and growing AI chip entities is a major driver.
The emerging clout of AI, 5G and ADAS chipset making is fueling demand for computational software tools, which favors Synopsys’ prospects. Given the company’s capability to cater to the growing complex design requirements of customers, we believe that it is well poised to capitalize on this opportunity.
Notably, the coronavirus crisis has compelled governments globally to impose lockdown to contain the spread. Nevertheless, courtesy of the ongoing adoption of digital transformation, and evolving IT and networking infrastructure, majority of the companies are asking employees to work from home.
In the wake of the present scenario, Synopsys, with its promising fundamentals, is poised to grow.
Zacks Rank and Other Key Picks
Synopsys currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are LogMein, Inc. , and ManTech International Corporation , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for LogMein and ManTech is currently pegged at 5% and 7.36%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Shutterstock
Synopsys Powers Groq Processor, Expands in AI Chip Market
Synopsys, Inc.’s (SNPS - Free Report) ZeBu Server 4 product is generating a broad-based adoption by customers’ designing storage, networking and AI chips. Recently, the company announced that Groq has adopted the ZeBu Server 4 emulation solution to develop its Tensor Streaming Processor (TSP).
ZeBu server enables software developers to run numerous software cycles required to support complex new software stacks on various gate designs. The ZeBu Server 4 has already optimized and validated Groq's TSP architecture prior to silicon, resulting in a powerful performance for throughput and latency.
Notably, in November last year, Synopsys announced a multi-year agreement with Advanced Micro Devices (AMD - Free Report) to utilize the ZeBu Server 4 emulation system. As part of this new agreement, Synopsys will optimize its ZeBu and VCS software for execution on AMD EPYC processor-based servers.
Synopsys, Inc. Price and Consensus
Synopsys, Inc. price-consensus-chart | Synopsys, Inc. Quote
Growing AI Chipset Market Bodes Well
Synopsys’ penetration into new and growing AI chip companies is a major growth driver. Further, with the growing need for enhanced security measures, considering the rising security threats in interconnected systems laden with software, demand for the company’s solutions is shooting up.
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, per Allied Market Research, the artificial intelligence chip market is projected to reach $91.19 billion by 2025, witnessing a CAGR of 45.2% from 2019.
Rajiv Maheshwary, vice president of marketing and business development in the Verification Group, Synopsys, said, "We continue to see momentum at AI chip companies requiring emulation solutions with high-performance, capacity, and reliability to verify multi-billion gate chips".
Product Strength: A Catalyst
Synopsys is benefiting from increasing global design activity and customer engagements. Its penetration into new and growing AI chip entities is a major driver.
The emerging clout of AI, 5G and ADAS chipset making is fueling demand for computational software tools, which favors Synopsys’ prospects. Given the company’s capability to cater to the growing complex design requirements of customers, we believe that it is well poised to capitalize on this opportunity.
Notably, the coronavirus crisis has compelled governments globally to impose lockdown to contain the spread. Nevertheless, courtesy of the ongoing adoption of digital transformation, and evolving IT and networking infrastructure, majority of the companies are asking employees to work from home.
In the wake of the present scenario, Synopsys, with its promising fundamentals, is poised to grow.
Zacks Rank and Other Key Picks
Synopsys currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are LogMein, Inc. , and ManTech International Corporation , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for LogMein and ManTech is currently pegged at 5% and 7.36%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>