Synopsys Inc (NASDAQ:SNPS) stock climbed 3.5% in extended trading Wednesday as strong demand for the company’s semiconductor design software drove a fiscal fourth-quarter expectations beat.
The company posted earnings of $3.17 per share on revenue of $1.6 billion, topping Street expectations of $3.04 per share on revenue of $1.59 billion.
The beat is thanks in part to rising demand for fast and efficient semiconductors that can handle complex artificial intelligence-based processes. Synopsys is the largest maker of software used in chip design, according to reports.
"Our momentum continued in 2023 as we substantially expanded our AI-driven design differentiation, our semiconductor IP portfolio, and our multi-die system solutions,” CEO Aart de Geus said in a statement.
Snyposys’ first-quarter revenue guidance of $1.63 billion to $1.66 billion also surpassed Street expectations of $1.6 billion, and its earnings projection of $3.40 to $3.45 per share beat expectations of $3.05 per share.
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