Synopsys

Synopsys QJul26

- EDA and IP are back on track; IP is still 10% down vs previous peak

- EDA at $1.28B is an all-time high, 8% above the prior $1.18B peak of Q3 FY25

- On AI disruption, the company sees customer models still needing its physics and sign-off tools; AI-native design is a demand driver rather than a substitution risk, per SNPS

- Record hardware revenue again; 12 new and 66 repeat hardware customers in the quarter

- IP revenue $474M, up 11% y/y and 4% q/q; first y/y growth after three straight down quarters, second consecutive sequential increase, with further sequential growth expected in Q4

Source: Sravan Kundojjala

Breaking: NVIDIA Corp just filed its Q2 2026 13F

Here's everything you need to know about the recent 13F

All positions:

• Intel $Intel(INTC.US) (47.3%)

• SpaceX (33.1%) — NEW this filing

• CoreWeave $Coreweave(CRWV.US) (7.4%)

• Coherent $Coherent Corp.(COHR.US) (4.8%)

• Nokia $Nokia Oyj(NOK.US) (3.5%)

• Synopsys $Synopsys(SNPS.US) (3.4%)

• Nebius Group $Nebius(NBIS.US) (0.5%)

New positions:

• SpaceX, ~122.8M Class A shares, $20.98B stake

Full exits:

• None

📢 𝗝𝗨𝗦𝗧 𝗜𝗡: Synopsys Expands Intel 14A Collaboration With Certified AI-Powered EDA Flows - $Synopsys(SNPS.US) $Intel(INTC.US)

👉 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:

➤ 𝗦𝘆𝗻𝗼𝗽𝘀𝘆𝘀 certifies AI-powered EDA flows for 𝗜𝗻𝘁𝗲𝗹 𝟭𝟰𝗔.

➤ Collaboration integrates 𝗽𝗼𝘄𝗲𝗿, thermal, and electromagnetic analysis.

➤ System-aware co-design spans 𝘀𝗶𝗹𝗶𝗰𝗼𝗻, packaging, IP, and systems.

➤ 𝗦𝘆𝗻𝗼𝗽𝘀𝘆𝘀 𝟯𝗗𝗜𝗖 𝗖𝗼𝗺𝗽𝗶𝗹𝗲𝗿 supports Intel EMIB and EMIB-T.

➤ Platform enables automated 𝗨𝗖𝗜𝗲 and 𝗛𝗕𝗠 routing.

➤ Designers can identify system-level issues before 𝘁𝗮𝗽𝗲𝗼𝘂𝘁.

➤ Intel 14A IP includes 𝗣𝗖𝗜𝗲 𝟳.𝟬 and 𝟮𝟮𝟰𝗚 SerDes.

➤ Portfolio also adds 𝗨𝗦𝗕 𝟰, eUSB, memories, and logic libraries.

➤ Expanded tools target next-generation 𝗔𝗜 and HPC chip designs.

👉 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀:

➤ Certified flows could reduce 𝗱𝗲𝘀𝗶𝗴𝗻 𝗿𝗶𝘀𝗸 and late-stage rework.

➤ Integrated analysis improves predictability for complex Angstrom-scale systems.

➤ Broader IP support may accelerate 𝘁𝗶𝗺𝗲-𝘁𝗼-𝘁𝗮𝗽𝗲𝗼𝘂𝘁.

➤ Collaboration strengthens Intel 14A readiness for 𝗔𝗜 and HPC customers.

👉 𝗘𝘅𝗽𝗲𝗿𝘁 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀:

𝗠𝗶𝗰𝗵𝗮𝗲𝗹 𝗕𝘂𝗲𝗵𝗹𝗲𝗿-𝗚𝗮𝗿𝗰𝗶𝗮, Senior Vice President at Synopsys:

"Angstrom-scale design is no longer only about extracting more power, performance, and area from a process node. It is about turning process innovation into predictable system-level outcomes. Together with Intel Foundry, Synopsys is helping customers accelerate convergence, reduce late-stage rework, and achieve first-pass silicon success. We applaud the Intel Foundry team for their progress on Intel 14A to expand the capabilities of advanced semiconductor manufacturing."

𝗦𝗵𝗮𝘄𝗻 𝗛𝗮𝗻, SVP and GM, Foundry Services, Intel Corporation:

"In this increasingly AI-driven world, Intel Foundry is committed to supporting our customers by accelerating innovation and providing predictable execution from silicon to packaging on our most advanced technologies. Our wide-ranging collaboration with Synopsys, including AI-driven, certified flows and IP, gives our customers greater ease of use and confidence to achieve their design goals."

📢 𝗝𝗨𝗦𝗧 𝗜𝗡: Synopsys and NVIDIA Unveil Autonomous Engineering Workflows Delivering Up to 50X Faster Chip Verification - $NVIDIA(NVDA.US) $Synopsys(SNPS.US)

👉 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:

➤ 𝗦𝘆𝗻𝗼𝗽𝘀𝘆𝘀 launches fully autonomous, long-running chip verification workflows.

➤ Design verification delivers up to 𝟱𝟬𝗫 faster validated RTL.

➤ Autonomous verification improves coverage by an additional 𝟮𝟬%.

➤ Agentic workflows compress weeks of manual work into hours.

➤ Analog and mixed-signal workflows improve productivity by up to 𝟯𝗫.

➤ Autonomous CAE agents accelerate electronics cooling and thermal analysis.

➤ Synopsys now offers over 𝟮𝟬 GPU-accelerated engineering products.

➤ 𝗣𝗿𝗶𝗺𝗲𝗦𝗶𝗺 SPICE simulations run up to 𝟭𝟴𝗫 faster.

➤ 𝗤𝘂𝗮𝗻𝘁𝘂𝗺𝗔𝗧𝗞 workloads achieve speedups of up to 𝟮𝟬𝟬𝗫.

➤ Customer availability is planned for the second half of 𝟮𝟬𝟮𝟲.

👉 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀:

➤ Autonomous agents could sharply reduce semiconductor development timelines.

➤ Faster verification may lower costly chip-design errors before fabrication.

➤ GPU acceleration expands NVIDIA’s role across engineering software workflows.

➤ Synopsys strengthens its competitive position in AI-powered EDA and CAE.

👉 𝗘𝘅𝗽𝗲𝗿𝘁 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀:

𝗥𝗮𝘃𝗶 𝗦𝘂𝗯𝗿𝗮𝗺𝗮𝗻𝗶𝗮𝗻, Chief Product Management Officer at Synopsys:

“AI is fundamentally reshaping engineering, and Synopsys is at the forefront of this transformation, enabling fully autonomous agents across every stage of silicon and systems development. Our close collaboration with NVIDIA continues to accelerate the development of next-generation AI technologies by combining Synopsys' domain expertise spanning EDA and CAE with NVIDIA's advanced AI infrastructure and technologies. Together, we are enabling a new class of autonomous engineering workflows that elevate productivity, unlock deeper insights, and help customers innovate faster.”

𝗧𝗶𝗺 𝗖𝗼𝘀𝘁𝗮, Vice President and General Manager for Computational Engineering at NVIDIA:

“The future of engineering is agentic, where AI agents reason, plan, execute complex workflows and verify their own work across the entire product development lifecycle. Synopsys is using NVIDIA AI tools and accelerated computing to build simulation and AI physics agents that help teams close verification, automate thermal analysis and compress development cycles from weeks to hours.”

BofA: Kimi 3

The Kimi K3 Release & The Compute Race

> New Chinese Open-Weight Model: Moonshot has unveiled Kimi K3, a massive 2.8-trillion-parameter Mixture of Experts (MoE) model with a 1-million-token context window.

> U.S. Labs Pressured to Scale: With Chinese open-weight models closing the gap and media reports suggesting Google’s Gemini 3.5 Pro is months behind schedule, U.S. frontier labs (OpenAI, Anthropic, Google) must increase compute. They will need larger training runs, heavier reinforcement learning (RL), synthetic-data loops, and faster release cadences to stay ahead.

> Business Over Leaderboards: Investors are cautioned not to confuse benchmark leadership with sustainable business models. The durable moat in enterprise AI is delivering accurate, low-latency, and high-uptime AI at the lowest cost.

Bullish Outlook for AI Semiconductors

> MoE Architectures Boost Hardware Demand: The shift toward Mixture of Experts (MoE) architectures highlights the critical importance of memory movement, routing, latency, and interconnects.

> NVIDIA's Next-Gen Efficiency: NVIDIA's GB300 NVL72 provides up to a 25x performance-per-watt improvement over Hopper when serving leading open MoE models.

> Expanding Silicon Demand: Open models are inherently bullish for semiconductors. Even as model value commoditizes, the infrastructure demands for GPUs, High-Bandwidth Memory (HBM), networking, and efficient inference will continue to expand.

> EDA Resilience: BofA remains constructive on Electronic Design Automation (EDA) players like Cadence (CDNS) and Synopsys (SNPS). Despite mentions of "open-source EDA at 45nm" in Kimi K3, commercial EDA tools remain entirely mandatory for major foundries like TSMC to manufacture advanced chips.

Surging Token Usage & Enterprise AI Adoption

> Chinese Labs Leading Token Volume: Data from OpenRouter shows that weekly token usage is proliferating rapidly, with daily token usage on Chinese AI models now exceeding that of Western AI labs.

> US Enterprise Adoption Rates: According to the Ramp AI Index, approximately 55% of US businesses now have paid subscriptions to AI tools (significantly higher than the US Census estimate of 21%).

> Market Share & Spending: Anthropic leads enterprise model adoption at 42.4%, closely followed by OpenAI at 39.5%. While the median monthly AI spend per employee is just $11, the top 1% of enterprise spenders are averaging a massive $4,833 per employee monthly.

$Cadence Design(CDNS.US) $NVIDIA(NVDA.US) $Alphabet(GOOGL.US) $Synopsys(SNPS.US)

📢 𝐉𝐔𝐒𝐓 𝐈𝐍: $Synopsys(SNPS.US) Synopsys to discontinue fab process-control software, shift resources to AI design

Synopsys plans to stop offering a suite of manufacturing process-control software used by global chipmakers and reallocate resources to higher-margin AI design, six people familiar with the matter said.

The company informed more than a dozen manufacturers — including Samsung Electronics, SK Hynix, Kioxia Holdings and Qorvo — in April and May that it will end the product lifecycle, meaning no further new releases while continuing maintenance obligations.

Affected products include Equipment Engineering Systems (EES) and defect detection and classification (FDC) systems, automated factory-level tools that monitor production and flag anomalies to prevent costly defects.

📢 𝐉𝐔𝐒𝐓 𝐈𝐍: $Synopsys(SNPS.US) Synopsys Launches Multiphysics Fusion Solutions for Advanced Chip Design

👉 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:

➤ 𝐒𝐲𝐧𝐨𝐩𝐬𝐲𝐬 launched its first 𝐌𝐮𝐥𝐭𝐢𝐩𝐡𝐲𝐬𝐢𝐜𝐬 𝐅𝐮𝐬𝐢𝐨𝐧 solutions for customer deployment.

➤ Platform combines Synopsys AI-powered EDA tools with 𝐀𝐧𝐬𝐲𝐬 golden signoff analysis.

➤ Solutions integrate multiphysics analysis across 𝐭𝐢𝐦𝐢𝐧𝐠, 𝐝𝐞𝐬𝐢𝐠𝐧 𝐜𝐥𝐨𝐬𝐮𝐫𝐞, 𝐦𝐮𝐥𝐭𝐢-𝐝𝐢𝐞, and 𝐚𝐧𝐚𝐥𝐨𝐠 workflows.

➤ Multiphysics Fusion for Timing Signoff enables 𝐮𝐩 𝐭𝐨 𝟑𝐱 faster runtimes with SPICE-accurate analysis.

➤ Design Closure solution delivers 𝐮𝐩 𝐭𝐨 𝟏𝟎𝐱 faster closure and improved PPA.

➤ Multi-die solution provides concurrent 𝐩𝐨𝐰𝐞𝐫, 𝐭𝐡𝐞𝐫𝐦𝐚𝐥, and 𝐞𝐥𝐞𝐜𝐭𝐫𝐨𝐦𝐚𝐠𝐧𝐞𝐭𝐢𝐜 analysis.

➤ Platform uses 𝐍𝐕𝐈𝐃𝐈𝐀 CUDA-X libraries and GPU acceleration for complex workloads.

➤ Market leaders including 𝐂𝐢𝐬𝐜𝐨, 𝐌𝐞𝐝𝐢𝐚𝐓𝐞𝐤, 𝐍𝐕𝐈𝐃𝐈𝐀, and 𝐒𝐚𝐦𝐬𝐮𝐧𝐠 validated the technology.

➤ Synopsys said the platform helps shift chip development from 𝐨𝐯𝐞𝐫𝐝𝐞𝐬𝐢𝐠𝐧 to 𝐜𝐨-𝐝𝐞𝐬𝐢𝐠𝐧.

👉 𝐖𝐡𝐲 𝐈𝐭 𝐌𝐚𝐭𝐭𝐞𝐫𝐬:

➤ Growing AI and HPC chip complexity increases demand for 𝐦𝐮𝐥𝐭𝐢𝐩𝐡𝐲𝐬𝐢𝐜𝐬-𝐚𝐰𝐚𝐫𝐞 design tools.

➤ Faster design closure can reduce development costs and 𝐭𝐢𝐦𝐞-𝐭𝐨-𝐦𝐚𝐫𝐤𝐞𝐭.

➤ Early system-level insights may improve chip 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞, 𝐞𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲, and reliability.

👉 𝐄𝐱𝐩𝐞𝐫𝐭 𝐒𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭:

➤ "Multiphysics is fundamentally reshaping how advanced semiconductor designs are engineered, driving a shift from costly overdesign to integrated, system-aware co-design. Our Multiphysics Fusion portfolio unifies Synopsys and Ansys technologies to embed physics directly into digital and analog workflows, enabling engineering teams to design across domains with fewer iterations, improved productivity and more optimized silicon for next-generation systems." — 𝐒𝐚𝐧𝐣𝐚𝐲 𝐁𝐚𝐥𝐢, Senior Vice President of EDA Product Management and Strategy at Synopsys.

➤ "By unifying multiphysics analysis and timing signoff across digital, analog, photonic and multi-die designs, Synopsys Multiphysics Fusion technology gives us earlier insight into cross-domain interactions across silicon, advanced packaging and optical domains, which makes it possible for us to improve predictability, reduce late-stage rework, and achieve a runtime that's 10 times faster than before." — 𝐇𝐚𝐫𝐫𝐢𝐬𝐨𝐧 𝐇𝐬𝐢𝐞𝐡, Vice President at MediaTek.

➤ "Synopsys is using NVIDIA accelerated computing and CUDA-X libraries, including cuDSS, which delivers up to 13x GPU acceleration, to scale increasingly complex SPICE simulations, electromagnetics, and power-integrity workloads. In addition, Synopsys Multiphysics Fusion solutions enable up to 5x faster design closure and up to 86% IR fix rates in selected pilot designs." — 𝐓𝐢𝐦 𝐂𝐨𝐬𝐭𝐚, Vice President and General Manager of Computational Engineering at NVIDIA.

➤ "Synopsys' Multiphysics Fusion technology provides a unified, all-aware timing signoff platform by integrating PrimeTime with multiphysics insight, delivering SPICE-accurate correlation and enabling margin recovery. This is increasingly important as we pursue higher levels of integration, performance, and reliability across advanced process and multi-die technologies." — 𝐇𝐲𝐮𝐧𝐠-𝐎𝐜𝐤 𝐊𝐢𝐦, Vice President and Head of the Foundry Design Technology Team at Samsung Electronics.

Synopsys QApr26

- FY26 revenue guidance was raised by $55 million at the midpoint

- IP turns the corner after 3 straight quarters of decline

- Assumes no IP upside from Intel 18A/14A evals in FY26 guidance

- Expects muted IP growth for FY26, though sequential quarterly improvement is expected throughout H2

- China design start environment remains challenged by restrictions

- Analog, industrial, and automotive design starts remain fairly muted

Source: Sravan Kundojjala

$Synopsys(SNPS.US) | Morgan Stanley reiterates 𝐄𝐪𝐮𝐚𝐥𝐰𝐞𝐢𝐠𝐡𝐭 on 𝐒𝐲𝐧𝐨𝐩𝐬𝐲𝐬, 𝐫𝐚𝐢𝐬𝐞𝐬 𝐏𝐓 𝐭𝐨 $𝟓𝟐𝟓 𝐟𝐫𝐨𝐦 $𝟒𝟖𝟎

Analyst sees the medium-term case for SNPS resting on its co-design offering, silicon to systems strategy, and Synopsys-Ansys product integration.