Synopsys shares fall after sales guidance comes in below expectations
finance.yahoo.com
SNPS
-12.37%
Despite a fourth quarter beat on both adjusted earnings and revenue, shares of Synopsys ( SNPS) fell sharply Thursday after the chip design company provided a weaker-than-expected forecast for 2025. In an interview with Yahoo Finance, Synopsys President and CEO Sassine Ghazi argues that while the company's 2025 guidance may be below Street expectations, it is still on a growth trajectory.
"If you look at Synopsys' performance over the last five years, it has definitely been up and to the right with a 15% CAGR growth during that period," he said. "We doubled the size of the company during that period due to an AI inflection point and significant investments by our customers to build silicon for the data centers to satisfy that opportunity."
Ghazi acknowledged that parts of Synopsys' business are lagging, but in his estimation, the company is doing business in two unique markets.
"There is the AI infrastructure, and every company that is building semiconductors or any solutions for the AI infrastructure is booming, and we're doing fantastic with that. Then there is the other cohort, which is the rest of the semiconductor industry that's selling to mobile, to PC, industrial, automotive, they're at a different point in time when it comes to their recovery." |
