(Reuters) – Synopsys forecast second-quarter revenue above Wall Street estimates on Wednesday, boosted by growing demand for its software used in designing chips.
Companies such as Amazon, Google and Apple are investing in designing their own chips, as are carmakers and other businesses, helping drive demand for Synopsys’ software.
The company sees second-quarter revenue between $1.59 billion and $1.62 billion, the midpoint of which is slightly above analysts’ estimates of $1.60 billion, according to data compiled by LSEG.
On an adjusted basis, the company sees per-share earnings to be between $3.37 and $3.42 for the second quarter, compared with analysts’ estimates of $3.35.
Synopsys, which partners with chip companies such as Nvidia, Qualcomm and Intel, provides software and hardware used for designing advanced processors.
Semiconductor firms also use Synopsys’ AI-powered electronic design automation suite, Synopsys.ai, to improve complex chip designs.
Revenue from the company’s design automation unit — its largest segment, which includes digital and custom integrated circuit design software — was $1.02 billion in the first quarter.
Synopsys posted revenue of $1.46 billion, slightly below analysts’ estimates of $1.47 billion for the first quarter.
(Reporting by Kritika Lamba in Bengaluru; Editing by Mohammed Safi Shamsi)
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