US Stock Market Move | AI chip design demand drives performance Surges Synopsys, Inc. (SNPS.US) jumps over 11% after earnings

On Thursday, chip automation design giant Synopsys, Inc. (SNPS.US) opened high and climbed higher, rising over 11% as of this writing. In news, Synopsys, Inc. released its Q3 earnings for fiscal year 2026, with revenue, profit margins, and earnings per share all exceeding guidance upper limits. The companys Q3 revenue grew by 42% year-on-year to $2.48 billion, better than the analysts' average expectation of $2.44 billion; adjusted net profit was $750 million, a 37% increase from $550 million in the same period last year; adjusted earnings per share were $3.91, exceeding the analysts' average estimate of $3.67. The company is benefiting from the expansion of the multitrillion-dollar artificial intelligence (AI) infrastructure, which has driven demand for complex AI chips and increased demand for advanced design tools. As chip manufacturers increase their investment in more advanced chip systems, the demand for AI-related chip design has surged.