Synopsys shares plunged nearly 35%, erasing 2025 gains, after weak results tied to U.S.-China trade tensions

Synopsys shares experienced a sharp 35% drop in price after the company’s quarterly results disappointed ￰0￱ U. S.-China trade tensions have affected the businesses of companies that rely on the Chinese market for a substantial portion of their revenue, and Synopsys has taken a beating today, Wednesday. Synopsys’ SNPS share is down about 35% today.) business, which was disrupted by ￰1￱ restrictions to China and difficulties with a major foundry ￰2￱ export restrictions, imposed in late May, limited the sale of advanced chip design software to ￰3￱ Chinese market accounts for over 10% of revenue for many companies within the ￰4￱ restrictions were later lifted in July, but analysts say that the damage had already been done.

“Chinese customer confidence has been shaken and spending appetite has waned considerably,” analysts at Piper Sandler ￰5￱ ￰6￱ have tightened curbs on Beijing’s access to American semiconductor technology in an effort to safeguard national security and slow China’s technological advances, but their policies have increasingly strained the supply chain of ￰7￱ like ￰8￱ of a peer company, Cadence Design Systems, also fell by nearly 7% on the ￰9￱ changes within the industry Synopsys’ CEO Ghazi stated that a major foundry customer has scaled back their projects, further affecting the firm’s ￰10￱ did not name the customer, but analysts believe that the company is Intel , one of Synopsys’ long-time ￰11￱ has recently backed out of furthering its manufacturing ￰12￱ company has slowed down and canceled some foundry projects tied to its “18A” technology ￰13￱ program had initially been intended for external customers but has now been repositioned for Intel’s own products.

Intel’s CEO, Lip-Bu Tan, has said that the company sees a “reasonable return” from 18A only if it is used ￰14￱ analysts suggested that Synopsys had likely concentrated significant IP resources on the 18A platform, leaving it exposed when Intel shifted ￰15￱ after the company closed its $35B acquisition of engineering design software firm Ansys, Synopsys announced a strategic review of its ￰16￱ part of the restructuring, Ghazi announced that the firm will reduce its workforce by 10% by the end of fiscal year ￰17￱ the challenges, Synopsys remains a critical supplier of chip design tools and IP to the semiconductor ￰18￱ products are essential for companies developing advanced processors that power everything from smartphones to data centers and artificial intelligence ￰19￱ up to $30,050 in trading rewards when you join Bybit today