Synopsys Stock Surges on AI-Driven Chip Design Deals

Synopsys stock soared 12.8% on October 1, its best day since 2003, following stronger fiscal 2027 guidance and new deals with OpenAI and Amazon.

The agreements mark a significant expansion of Synopsys' role in the chip-design process, particularly in the use of artificial intelligence (AI) to automate more of the workflow while retaining the design engines, verification tools, and IP underneath it.

OpenAI will license Synopsys' EDA software, with the AI model running tools, interpreting results, and iterating on chip designs. Amazon's multi-year agreement, worth over $1 billion, expands its use of Synopsys silicon IP, EDA, simulation, and AI-powered engineering software.