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Synopsys Powers TSMC Processors for Improved Chip Design

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Synopsys, Inc. (SNPS - Free Report) recently collaborated with TSMC to deliver certified digital and custom design platforms for the latter’s N6 and N5 process technologies. This will enable chip designers to leverage TSMC's N6 and N5 process technologies to improve density, operating frequency, design performance and power consumption in silicon innovation.

Notably, Synopsys has a long-standing partnership with TSMC, which has helped expedite next-generation product designs for high-performance computing (HPC), mobile, 5G and AI chip designs.

Product Strength: A Catalyst

Synopsys’ penetration into new and growing AI chip companies is a major growth driver. Further, with the growing proliferation of 5G networks and the need for enhanced security measures, demand for the company’s solutions is shooting up.

Moreover, the emerging clout of AI, 5G and ADAS chipset making is fueling demand for computational software tools. This 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.

Robust growth in software-based verification at both traditional semiconductor and emerging system companies focused on in-house designs 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.

Moreover, per Grand View Research, the global 5G chipset market size is expected to see a CAGR of 63.4% from 2020 to 2027.

Importantly, the coronavirus crisis has compelled governments globally to impose lockdowns to contain the spread. Nevertheless, courtesy of the ongoing adoption of digital transformation, and the 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 Stocks to Consider

Synopsys currently has a Zacks Rank #2 (Buy).

A few other similar-ranked stocks in the broader technology sector are Advanced Semiconductor Engineering Inc (ASX - Free Report) , NeoPhotonics Corporation and CrowdStrike Holdings Inc. (CRWD - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Advanced Semiconductor, NeoPhotonics and CrowdStrike is currently pegged at 26.63%, 15% and 25%, respectively.

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