Synopsys, the largest manufacturer of IC design automation software (EDA), recently released its latest financial report. Affected by the white-hot US-China technology war, the revenue last quarter did not meet the expectations of Huaer Street, which surprised investors. On September 10, Synopsys' stock price plummeted 35%, and all of its gains this year were exhaled.
Reuters reported that in order to prevent the blockade of the Communist Party's use of AI to develop military power, the United States blocked China from obtaining advanced process chip technology, which also affected Synopsys's Chinese industry performance. According to the financial report released by Synopsys on the 9th, the third quarter closed at $1.74 billion, less than the expected $1.77 billion on Wall Street, and the adjusted earnings per share was $3.39, which was also higher than the expected $3.74 on Wall Street.
Sassine Ghazi, executive director of Synopsys, admitted that the sluggish performance in the third quarter was mainly due to the Trump administration's release of a new round of AI chip restrictions on China and the challenge of a major foundry customer.
Ghazi did not directly name who the customer is, but the market generally believes that it is actually Intel. Analysts of JPMorgan Chase pointed out that Synopsys has bet on a large amount of resources on the Intel 18A process, but after Intel's new executive Chen Liwu took office, he decided to delay the production of 18A process chips later, resulting in the investment of Synopsys.
On September 10, Synopsys' stock price should have fallen by 35.84% and closed at $387.78, which has been out of the box office in 2025, and has fallen by 20.10% this year.