NEW YORK, December 30, 2025, 15:44 ET — Regular session
- Synopsys traded lower in late-afternoon dealings as year-end liquidity stayed thin.
- Investors weighed a Tuesday deadline to seek lead-plaintiff status in a securities class action.
- U.S. stocks were muted as traders parsed fresh Federal Reserve minutes.
Synopsys shares were down $3.06, or 0.6%, at $475.91 in late-afternoon trade, after moving between $472.05 and $483.14 on the day.
The chip-design software company sells electronic design automation tools — software used to design and verify semiconductors — and its stock has been sensitive to shifts in AI-linked tech sentiment into year-end.
That sensitivity is getting tested on a holiday-thinned session when small headlines can drive outsized moves. “It’s just a healthy rebalancing of allocations more so than an emotionally driven sell-off,” said Mark Hackett, chief market strategist at Nationwide, describing the broader rotation in tech. 1
Synopsys moved broadly in line with peer Cadence Design Systems, which was down 0.4%. The semiconductor ETF SOXX was flat and the Nasdaq-tracking QQQ edged lower.
Adding to the day’s noise, several plaintiff law firms said investors have until Tuesday to ask a U.S. judge to appoint a lead plaintiff — the investor who directs the case — in a securities class action against Synopsys and some executives. The filings allege misleading statements tied to the company’s Design IP business, which sells pre-built chip components, and the amount of customization required by some customers. 2
The litigation follows a steep selloff earlier this year. Synopsys fell nearly 35% in September after warning of pressure tied to China and its IP business, Reuters reported at the time. 3
The company last updated investors on December 10, when it beat fourth-quarter revenue estimates and forecast first-quarter revenue of $2.36 billion to $2.42 billion, according to a Reuters report. 4
Synopsys has also leaned into AI-focused partnerships after Nvidia took a $2 billion stake in the company in early December as part of a multi-year effort to speed up simulations used in chip and systems design, Reuters reported. 5
Investors are also tracking cost actions and integration work after Synopsys said it would lay off about 10% of its workforce — roughly 2,000 employees — as it redirects investment toward growth areas, Reuters reported. 6
Into the close, traders are watching whether the lawsuit deadline prompts fresh positioning, and whether the Fed minutes shift expectations for 2026 rate moves that underpin high-growth tech valuations.
Synopsys’ fiscal first quarter ends January 31, and its full-year targets call for revenue between $9.56 billion and $9.66 billion, the company said. 7
For now, the next big test remains demand and profitability in Design IP — long a growth engine — as customers push for more customization and the company ramps AI-driven tools.
