Synopsys Q4 Earnings

By Patrick Moorhead - December 5, 2023

The Six Five team discusses Synopsys Q4 Earnings.

If you are interested in watching the full episode you can check it out here.

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Transcript:

Patrick Moorhead: So Synopsys is one of the two beasts in EDA and IP and in fact they’re the number two IP company next to ARM. They had a beat double-digit revenue growth and they recently introduced essentially a generative AI overlay for designers, which Synopsys is not new to AI EDA, but they really layered it up and this isn’t just putting NLP on top of the AI to be able to do this. I interviewed their business unit lead and he was very clear with me. “No, we went all in on generative AI with the data,” and also they’re not using customer data to be able to help another one of their customers competitors here. And I thought that was important. Starts with Azure and over time they’re going to have to move this to likely Google Cloud AWS with likely FedRAMP implementation. But good job Synopsys.

Daniel Newman: Yeah. Absolutely, Pat. Look, some new launches in generative AI, very cool. The engineering challenges of the market are going to be potentially addressed by the company. It’s getting growth across both EDA and its IP portfolio. I think risk growth is going to play a factor in that as well. As we’ve said, and by the way, Synopsys now has found its way into our show three or four times in the last six weeks and that’s because they’re doing interesting things and their results are being validated by these good numbers from this quarter.

Patrick Moorhead
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Patrick founded the firm based on his real-world world technology experiences with the understanding of what he wasn’t getting from analysts and consultants. Ten years later, Patrick is ranked #1 among technology industry analysts in terms of “power” (ARInsights)  in “press citations” (Apollo Research). Moorhead is a contributor at Forbes and frequently appears on CNBC. He is a broad-based analyst covering a wide variety of topics including the cloud, enterprise SaaS, collaboration, client computing, and semiconductors. He has 30 years of experience including 15 years of executive experience at high tech companies (NCR, AT&T, Compaq, now HP, and AMD) leading strategy, product management, product marketing, and corporate marketing, including three industry board appointments.