Synopsys raises annual forecast on demand for AI chip design software
Synopsys raises annual forecast on demand for AI chip design software May 27 (Reuters) - Synopsys SNPS.O raised its annual results forecast on Wednesday, signaling steady demand for its chip design software from companies racing to develop AI chips and infrastructure.
Demand tied to AI has been strong as chipmakers and hyperscalers continued investing in more complex semiconductor designs and intelligent systems.
The company expects fiscal 2026 revenue between $9.63 billion and $9.71 billion, up from its previous forecast of $9.56 billion to $9.66 billion.
It expects annual adjusted profit to be between $14.72 and $14.80 per share, up from its prior view of $14.38 to $14.46.
"AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power - driving demand across our portfolio," CEO Sassine Ghazi said.
The company forecast third-quarter revenue between $2.41 billion and $2.46 billion, compared with analysts' average estimate of $2.41 billion, according to data compiled by LSEG.
Total revenue came in at $2.28 billion for the second quarter, compared with estimates of $2.25 billion.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shreya Biswas)
((HarshitaMary.Varghese@thomsonreuters.com;))