SNPSSynopsys, Inc.

“we are extending our competitive advantage by pioneering new capabilities, including Multiphysics Fusion, GPU-accelerated computing and AI-driven automation. Early results for our forthcoming Multiphysics Fusion technology demonstrate meaningful productivity gains, including up to 3x faster design closure with higher ECO success rates and up to 2x faster turnaround times for complex analog designs compared to traditional flows.”

“The shift to multi-die and chiplet architectures is driving demand for die-to-die interoperability. In Q2, we secured additional UCIe design wins and achieved a 64-gig tapeout on a 2-nanometer process, bringing total UCIe lifetime wins to over 150.”

“Demand for high-speed interconnect IP continues to accelerate, driven by AI's massive data requirements. In Q2, our PCIe 7.0 IP achieved a greater than 90% win rate with 18 new licenses and a growing pipeline.”

“The whole AI for EDA started from the journey of reinforcement learning, where we insert AI in every part of our products to a Copilot or an assistant for the human engineer. And we've always talked, at some point, the workflow will change toward an autonomous set of engineers or agent engineers, and we're seeing it happening right now. What we're witnessing is the traditional EDA product delivery, where the focus was on the user interface, simplifying out-of-the-box results for the human engineer to manage and tame the complexity of the chips that they are designing to a combination of human engineer and agent engineers running our tools.”

“If you're referring to hyperscaler taping out an accelerator, no, it's not the first one. There are, of course, different hyperscalers at different stages of maturity when it comes to their ability to bring their own silicon inside their data centers. We -- in each one of these engagements, Synopsys IP, hardware, EDA, Ansys portfolio is in use. And when I say everyone is everyone. There are none of the COT that does not use the EDA, HAV, IP and S&A.”

“Multiphysics Fusion is currently in expanding trials with leading customers and will begin ramping into commercial availability in the second half of 2026. As we deliver more value to customers, we expect to share in that value creation as contracts are renewed and expanded. For example, we're seeing early signs of monetization with GPU-accelerated EDA, a premium capability driving both increased customer value and contract uplift.”

“FY '27, because the -- we released to limited set of partners, the technology. We're expanding it further as we're getting more feedback and input from the early customers that they're evaluating the technology. And the key principle here, Gary, the key principle that we are putting guardrails around with the sales organization and the engagement with customers is 1 plus 1 must be greater than 2.”

“a leading HPC provider successfully taped out an incredibly complex next-generation AI accelerator using Synopsys' unified multiphysics-aware, design-to-signoff solution. This demonstrates the production-proven capability of our 3DIC Compiler platform, and we expect sustained adoption as next-generation AI designs increasingly move to multi-die and chiplet-based architectures.”

“The current thinking, and we're in early exploration with customers, is how do we build from the subscription license that our customer has for the human engineers to run our product to subscription plus consumption for the agents to utilize our products. So that's absolutely an upside for our EDA and S&A business as agents become more pervasive in our customers' workflow.”

“our agentic EDA capabilities are gaining traction with 20 customers now evaluating solutions across more than 25 specialized AI agents spanning front-end, verification, implementation and analog flows. This AgentEngineer technology represents a meaningful long-term opportunity to further increase productivity and drive higher value customer engagements.”

“the AI data center build-out is driving S&A demand, including and beyond semis, as customers use the power of Ansys simulation from chip to grid. In aerospace and defense, customers are adopting Ansys simulation to generate physics-based synthetic data to train AI models for highly complex operating environments.”

“Hardware-assisted verification remained the key growth driver with particular demand from hyperscaler and leading semiconductor customers, who are scaling emulation and prototyping for increasingly complex AI designs. This drove multiple strategic system wins across ZS5, ZeBu and HAPS-200.”

“We're strengthening our position in memory IP with design wins across hyperscalers, AI start-ups and leading semiconductor companies. In Q2, we also delivered the industry's first HBM4 IP test chip.”

“The key driver for the strength is the continued AI semiconductor from a chip point of view, opportunities that our customers are seeing and therefore, translating into chip start or a design start and system companies, i.e., the hyperscalers, integrating the silicon or expanding into their own chips, the COT model. For us, it's a great opportunity on both ends on the semiconductor suppliers as well as the hyperscalers because for any of these designs, you will need EDA software, you need hardware-assisted verification to verify the chip in the context of the software and IP.”

“What we are seeing is a chip start increase or a design start increase in anything AI-related. In industrial and automotive, while customers are reporting strength in revenue, there are multiple reasons for that, but the design starts are not growing -- definitely not growing at the pace as we're seeing for the other cohort. Now where we're seeing customers excitement in the analog space is things related to physical AI, because you need sensors, you need actuators, you need the actual analog to interface with the real world and translating it into the digital world.”

“driven by solid execution and continued AI-driven demand strength. This is an exceptional moment to be the leading engineering solutions provider. EDA, IP and multiphysics simulation have emerged as essential capabilities in the AI supply chain. AI is scaling semiconductor demand, architectural diversity and complexity of both chips and the systems they power, driving increased demand across our portfolio.”

“as they are injecting a change in their workflow with agents, with collaborating with humans and there's a massive increase in demand for licenses to train and influence these agents, we are absolutely expecting that the change in monetization and business model will happen, and we will drive it and we'll make it happen.”

“we are focusing our IP business on the highest value opportunities, aligned to AI-driven demand and hyperscaler customization. These engagements enable us to provide greater value as they increasingly involve deeper collaboration, customized IP solutions and even broader Synopsys participation in the design process.”

“disciplined focus on higher-value IP opportunities and engineering excellence to advance our differentiated innovation pipeline with agentic AI and Multiphysics Fusion technology.”

“the expansion of AI positions Synopsys for sustainable growth and margin expansion. As AI scales both chip complexity and system-level design requirements, our leadership portfolio of engineering solutions across EDA, IP and multiphysics simulation enables us to deliver differentiated value to customers and to capture a larger share of this expanding opportunity.”