Synopsys expands AI chip-design partnerships with AWS and OpenAI

  • Synopsys outlined fiscal 2027 financial targets and its GPT-Synopsys collaboration with OpenAI.
  • Synopsys targets fiscal 2027 revenue of $11.15 billion at the midpoint.
  • Synopsys plans to repurchase roughly $1 billion of stock in coming months.

Synopsys has expanded its AI-driven chip-design strategy through separate partnerships with Amazon and OpenAI while issuing fiscal 2027 earnings and revenue guidance above Wall Street estimates. The company forecast adjusted earnings per share of $19.04 to $19.12 and revenue of $11.1 billion to $11.2 billion, with a midpoint of $11.15 billion representing about 15% annual growth. Synopsys also plans to repurchase about $1 billion of stock in coming months and expects operating cash flow of roughly $3.6 billion and capital spending of $500 million. The multiyear Amazon agreement exceeds $1 billion and combines licensing payments with production royalties for application-optimized chip technology. Separately, Synopsys and OpenAI plan to develop GPT-Synopsys, a specialized model for chip development that will support circuit coding and chip layout through Synopsys software tools, with revenue shared between the partners and the product offered globally. Synopsys shares rose nearly 5% on Wednesday and added 2% early Thursday.

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