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Synopsys posts 42% revenue growth, driven by AI chip software contracts from Amazon and OpenAI.

Market News
08 Oct 2026
Seeking Alpha
View Source
Bullish
Synopsys posts 42% revenue growth, driven by AI chip software contracts from Amazon and OpenAI.

Synopsys, a leader in Electronic Design Automation (EDA) software essential for AI chip production, reported a 42% year-over-year revenue increase in Q3. EDA software now makes up 51.8% of its total revenue, with operating income soaring 116% year-over-year. The company benefits from major contracts with Amazon and OpenAI, boosting its growth and valuation, which trades at an 8.8x forward price-to-revenue ratio, slightly below its three-year average. However, rising customer concentration risk could impact revenue diversification despite strong demand driven by AI advancements.

Synopsys shares are trading at USD 497.08 on Pluang, down 1.11% as of Oct 09, 2026 02:51 WIB. The stock shows a market cap of $96.33 billion and a 63% buy order activity, reflecting steady investor interest despite the slight daily decline.

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