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Synopsys quarterly revenue forecast beats estimates on rising demand for chip design software
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Synopsys quarterly revenue forecast beats estimates on rising demand for chip design software
Feb 26, 2025 2:31 PM

Feb 26 (Reuters) - Synopsys ( SNPS ) forecast

second-quarter revenue above Wall Street estimates on Wednesday,

boosted by growing demand for its software used in designing

chips.

Companies such as Amazon ( AMZN ), Google and Apple are

investing in designing their own chips, as are carmakers and

other businesses, helping drive demand for Synopsys' ( SNPS ) software.

The company sees second-quarter revenue between $1.59

billion and $1.62 billion, the midpoint of which is slightly

above analysts' estimates of $1.60 billion, according to data

compiled by LSEG.

On an adjusted basis, the company sees per-share earnings to

be between $3.37 and $3.42 for the second quarter, compared with

analysts' estimates of $3.35.

Synopsys ( SNPS ), which partners with chip companies such as Nvidia ( NVDA )

, Qualcomm ( QCOM ) and Intel ( INTC ), provides

software and hardware used for designing advanced processors.

Semiconductor firms also use Synopsys' ( SNPS ) AI-powered electronic

design automation suite, Synopsys.ai, to improve complex chip

designs.

Revenue from the company's design automation unit - its

largest segment, which includes digital and custom integrated

circuit design software - was $1.02 billion in the first

quarter.

Synopsys ( SNPS ) posted revenue of $1.46 billion, slightly below

analysts' estimates of $1.47 billion for the first quarter.

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