Synopsys Is A Long-Term Growth Story In Chip Designing

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Synopsys ($NASDAQ:SNPS) is a leading provider of chip-designing software and services. Its technology is used in designing modern chips, which is continuing to drive its long-term revenue growth. Its Internet of Things and big data products enjoy significant competitive edge over products developed by other chip-designing software makers.

Synopsys has a long history of innovation and its products are used by some of the largest semiconductor companies in the world. The company is well-positioned to continue its growth in the chip-designing space as demand for its products remains strong.

Earnings

Synopsys is a long-term growth story in chip designing. The company’s latest earning report of FY2022 Q3 as of July 31 shows that it earned 4.9B USD in total revenue and 1.0B USD in net income. Compared to the previous year, this represents a 16.7% increase in total revenue and a 25.0% increase in net income. Synopsys’s total revenue has grown from 3.7B USD to 4.9B USD in the last 3 years, making it one of the fastest growing companies in the chip designing industry.

Market Price

Overall, the sentiment towards Synopsys has been positive, with the stock opening at $291.2 and closing at $295.8 on Friday. up 2.3% from the previous closing price of $289.2.

VI Analysis

Company’s fundamentals reflect its long term potential. However, the company faces some risks that could impact its ability to meet its financial and business goals. According to VI, these risks include its dependence on a small number of customers, the potential for intellectual property litigation, and the cyclical nature of the semiconductor industry. While these risks should not be ignored, they may be manageable for a company with strong fundamentals like SYNOPSYS.

VI Peers

Its main competitors are Cadence Design Systems Inc, Goodpatch Inc, and Zuken Elmic Inc.

– Cadence Design Systems Inc ($NASDAQ:CDNS)

Cadence Design Systems is a software company that provides tools that help engineers design semiconductors and other electronic products. The company’s market cap is $43.36 billion, and its return on equity is 22.8%. Cadence’s products are used by engineers to design and verify the manufacturing of semiconductors, computer chips, and other electronic products.

– Goodpatch Inc ($TSE:7351)

Patch Inc is a technology company that provides software development and IT services. The company has a market cap of 5.5 billion as of 2022 and a return on equity of 8.49%. Patch Inc offers a wide range of services including web and mobile application development, cloud computing, big data, and artificial intelligence. The company has a strong focus on helping its clients grow their businesses and expand their reach. Patch Inc has a team of experienced and skilled professionals who are dedicated to providing the best possible services to their clients.

– Zuken Elmic Inc ($TSE:4770)

Zuken Elmic Inc. is a Japanese electronics company that specializes in electronic design automation (EDA) software. The company has a market capitalization of 2 billion as of 2022 and a return on equity of 13.95%. The company’s products are used by electronics manufacturers to design and test printed circuit boards (PCBs). Zuken Elmic’s products are used by some of the world’s largest electronics companies, such as Samsung, LG, and Sony.

Summary

Investing in Synopsys may be a good idea for long-term growth potential in the chip design industry. The company has been around for a while, has a good reputation, and so far media sentiment seems mostly positive. Of course, as with any investment, there are risks involved and no guarantee of success. But if you’re looking for a company to invest in that has potential for long-term growth, Synopsys may be a good option to consider.