Synopsys expects strong second quarter on AI-powered chip design demand

Synopsys forecast second-quarter revenue and profit above Wall Street estimates on Wednesday, anticipating a surge in demand for its software to design complex and artificial intelligence-compatible chips.

The Sunnyvale, California-based company’s shares were up more than 3% in extended trading.

The outlook comes more than a month after Synopsys, the largest maker of software used in the chip designing process, said it would buy Ansys in a $35 billion cash-and-stock deal. In an interview, Synopsys CEO Sassine Ghazi said the company has started filing for regulatory approvals and so far has encountered “no surprises – there is nothing that we did not anticipate.”