Synopsys: Major Beneficiary of Potential Resumption of EDA Sales to China
Synopsys, along with Cadence Design Systems and Siemens EDA, accounts for about 80% of the Chinese EDA market
Morgan Stanley and KeyBanc set price targets at $540
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The USA and China are approaching an agreement on a framework for exports of rare earth materials and advanced technologies. As part of the agreement, the restrictions imposed on chip design software exports to China at the end of May could be lifted. Synopsys (SNPS), as a leading provider of EDA tools, would be a major beneficiary, having withdrawn its forecast on May 29 following halted sales in China. Approximately 8-10% of annual revenue is at risk as a result. The use of generative AI accelerates design and verification cycles from days to...
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