Synopsys raises annual forecast on demand for AI chip design software

By Stephen Nellis and Harshita Mary Varghese

SAN FRANCISCO, May 27 (Reuters) - Synopsys raised its ‌annual results forecast connected Wednesday, signaling dependable request for its spot plan bundle from companies racing to make ​AI chips and infrastructure.

Demand tied to AI has been beardown arsenic chipmakers and hyperscalers put successful much analyzable semiconductor designs and intelligent systems. Synopsys expects fiscal 2026 gross betwixt $9.63 cardinal and $9.71 billion, up from its erstwhile forecast of $9.56 cardinal to $9.66 billion, with a midpoint supra expert estimates ‌of $9.63 billion, according to LSEG ⁠data.

It expects yearly adjusted nett to beryllium betwixt $14.72 and $14.80 per share, supra expert estimates of $14.45 per share.

Synopsys besides reached an statement with Elliott ⁠Investment Management that volition springiness 1 committee spot to the activistic investor's managing partner, Jesse Cohn.

Synopsys CEO Sassine Ghazi told Reuters helium has had "constructive" discussions with Cohn connected however to make much ​revenue from ​the company's bundle and intelligence property.

Ghazi said the ​company is moving connected caller agreements ‌with ample customers successful which they volition wage much for AI bundle tools, including "agent engineers" that assistance boost productivity. To separately boost revenues successful the company's intelligence spot licensing business, Ghazi said the agreements volition besides impact customers paying royalties for each spot made with Synopsys technology.

"AI changing some the equilibrium betwixt a quality technologist and cause technologist is an inflection ‌point to person a antithetic speech with our customers, ​so that's connected the bundle side," Ghazi said. "On the ​IP side, determination is intelligibly a ​trend successful information centers for the hyperscalers to physique their ain ‌chips. You cannot physique your ain chips ​without the information of ​Synopsys IP."

The institution forecast third-quarter gross betwixt $2.41 cardinal and $2.46 billion, compared with analysts' mean estimation of $2.41 billion, according to information compiled by LSEG.

Total gross came successful astatine $2.28 ​billion for the 2nd quarter, ‌compared with estimates of $2.25 billion.

Synopsys shares declined astir 1.5% successful after-market trading aft ​the results.

(Reporting by Harshita Mary Varghese successful Bengaluru and Stephen Nellis successful ​San Francisco; Editing by Shreya Biswas, Rod Nickel)