Synopsys Stock is faced with trading supports, but Wi Taillids persists News ad

Synopsys today

$ 478.86 -16,13 (-3.26%)

As of 06/13/2025 21:00

52-week range

$ 365.74

▼

$ 624.80

P/e ratio.

32.98

Value is valuable

$ 607.14

Despite only the fraction of the attention of the designers AI-Chip, Synopsys NASDAQ: SNPS It is a company that is very important for the semiconductor industry. Electronic Automation Design (EDA) software is important for the development of these and many other chips, which makes it an important part of the industry for understanding and potential investment.

However, Synopsys shares recently saw disappointing results. As of the closure of June 11, they down about 13% in the last 52 weeksThe field of recent news associated with China and Trump does not help. So what are the latest events related to synops? In addition, does this vital company still have potential for a significant increase in shares?

SYNOPSYS clogs when Trump closes EDA sales to China

May 28 shares Synopsys fell by almost 10%This field was in response to the news that the Trump administration ordered Sinopsys and other EDA companies to stop sales in China. This will be far from trivial business loss for Synopsys. About 10% of the company’s revenue came from China in the last quarter. The restriction emphasizes the importance of Synopsys in the development of advanced chips. US government officials believe that they disable China from Synopsys software as a way to slow down the development of this technology.

It was a dark cloud, which was hung out by the solid financial results of the company, which came out on the same day after the closure of the market. The company exceeded sales ratings and adjusted profit per share (EPS). Two digits increased by 10% and 22% compared to the quarter of the previous year, respectively.

Synopsys said that in the call of income it did not receive notifications of this restriction from the administration. However, this notification came the next day. This led to the fact that the company suspended its management in the 3rd quarter and 2025 for the whole year.

Although this restriction, of course, is not good news for Synopsys, it is also not Backbreaker, which it may seem about. The contribution of the company’s revenue from China decreased from 15% in the second quarter of 2024 to 10% in the last quarter. Now geography is the smallest participant in the five, which she reports.

Trading restrictions related to China are not new to the company. The growth of sales in the country has slowed down for many years. This is due to the fact that past restrictions have reduced the basin of Chinese customers that it can sell.

This shows that China was already a worsening business for Sinopsys, softening the blow of this new restriction. Another very important problem for solving is the planned acquisition of ANSYS NASDAQ: ANSField

Ansis approval receives a new wrinkle

Synopsys in the first place announced his ANSYS acquisition deal Back in January 2024, for 35 billion dollars. However, the company is still waiting for the approval of regulatory bodies on the transaction. Chinese regulators remain the only group that has not yet approved this. There were some assumptions that the transaction could be approved earlier, since the company will no longer conduct business in China.

At the Bank of America Global Technology 2025 conference, on June 4, the company noted that some implies that the ANSYS transaction can be made “this week”. Nevertheless, this, according to the visible, would require the company to decide that it no longer requires China’s approval.

Synopsys pushed the idea that it will consider this. Trade negotiations in China can progress in such a way as to restore the ability of Synopsys in China. Forward movement with acquisition Without approval, China can significantly damage his chances to return to the Chinese market.

So, Synopsys is still looking for the necessary approval of China. It is expected that this approval will occur in the first half of 2025. With new trade restrictions, there is a possibility that China’s position in the transaction will strengthen. He may try to use it as negotiations in trade negotiations.

SNPS: short -term uncertainty, but secular trends are too large to ignore

Since Synopsys suspended their leadership, Keycorp analysts set a target price of $ 540 per share. This implies 8% growth compared to the price of the company on June 11. This indicates a very moderate amount growth potentialAnd the ANSYS deal provides a short -term counter wind for Synopsys.

However, the long -term prospects of the company remain strong. The ANSYS deal is likely to ultimately pass that the company’s competitive position will help significantly.

In addition, the company will benefit from recovery in the end markets that are not related to AI for some time experiencing a decrease.

In general, a secular trend in the development of more and more advanced chips in the end markets sets a supply for Long -term successField

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