Shares of Synopsys Inc. (SNPS) reached a new peak on Thursday following the announcement of their first-quarter earnings and forward-looking statements, exceeding expectations due to the surge in demand for AI-related products.
The company, specializing in the creation of software for chip design, unveiled its adjusted earnings per share (EPS) at $3.56 late Wednesday, surpassing the predictions of market analysts.
For the fiscal first quarter ending in January, the company’s revenue climbed to $1.65 billion, marking a 21% increase from the same period last year.
Looking ahead, the company, based in Sunnyvale, California, anticipates its adjusted EPS for the next quarter to be in the range of $3.09 to $3.14.
Synopsys President and CEO Sassine Ghazi highlighted that the ongoing interest in AI is fueling investments in silicon and system advancements among their clientele, setting the stage for future growth.
Additionally, Synopsys recently declared its acquisition of Ansys (ANSS), a simulation software enterprise, for $35 billion.
The firm’s software portfolio is crucial for engineers involved in the design and testing of silicon chips, serving major chip producers like Nvidia (NVDA) and Intel (INTC).
By Thursday afternoon, Synopsys shares had risen by 7% to $581.26 each, showcasing an over 60% increase over the past twelve months.
