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. Reuters
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.
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.
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.
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.
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.
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.
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.
