New York, Jan 6, 2026, 15:51 EST — Regular session
- Synopsys shares rise about 3% in afternoon trading as chip stocks gain
- Company highlights new automotive engineering partnerships and virtual testing tools at CES 2026
- Investors watch CEO comments at CES on Jan. 7 and the next earnings date listed by market calendars
Shares of Synopsys Inc rose 2.9% to $508.47 in afternoon trading on Tuesday, extending gains from the prior session. The stock has traded between $494.19 and $509.40, with about 1.4 million shares changing hands.
The move matters because electronic design automation — software used to design and test chips — often moves early in the spending cycle, when customers lock in tools ahead of new silicon projects. Synopsys is also trying to deepen its foothold in automotive engineering as carmakers add more computing power and sensors.
The PHLX semiconductor index was up 2.7% on Tuesday on renewed AI optimism, Reuters reported. “We’re going to have a very strong earnings season for Big Tech,” said Jed Ellerbroek, a portfolio manager at Argent Capital. Investors are also watching Wednesday’s JOLTS labor report and Friday’s U.S. jobs data for clues on interest rates.
Synopsys said its Ansys AVxcelerate Sensors product now includes Samsung Electronics’ ISOCELL Auto 1H1 image sensor to help teams simulate and test systems before hardware is built, and that it will support the Fédération Internationale de l’Automobile on single-seater safety standards. The company also announced new “virtual development kits” — software models that let engineers build and test a system-on-chip in software — with partners including NXP Semiconductors, Texas Instruments and Arm. Chief product management officer Ravi Subramanian said software-defined mobility “necessitate a foundational shift” in automotive engineering. Synopsys Investor Relations
Rival Cadence Design Systems rose 4.5% to $314.87. Synopsys competes in electronic design automation with Cadence and Siemens.
A Form 4, a required disclosure of insider trades, showed Synopsys general counsel and corporate secretary Janet Lee received 130 shares from vested restricted stock units. The filing said 49 shares were withheld to cover taxes at a price of $469.72 on Dec. 31. SEC
In December, Synopsys projected fiscal 2026 revenue of $9.57 billion to $9.65 billion and adjusted profit of $14.32 to $14.40 per share, including about $2.9 billion of expected Ansys revenue. It ended fiscal 2025 with $11.4 billion in backlog, the company said. The stock is about 22% below its 52-week high of $651.73 and trades at about 62 times trailing earnings, according to SoFi.
But the shares have been sensitive to any hint that customers are delaying chip projects, since design starts can slow quickly when budgets tighten. Automotive programs add another moving part, as car demand and regulation can change the pace of development.
Investors will next listen for comments from CEO Sassine Ghazi, who is scheduled to appear at CES on Wednesday, Jan. 7, in a session hosted by Six Five Media. Market calendars list Synopsys’ next earnings date as Feb. 25, though the company has not confirmed it. public.com
