Synopsys (SNPS) and Cadence (CDNS) own the chip design software duopoly that every designer relies on, yet both have badly lagged the semiconductor rally since 2022. One year after Synopsys’ massive Ansys merger, what actually went wrong?
In this episode, we break down why the EDA giants are trailing the SOXX, the fallout from the Ansys deal, and why Synopsys sold its ARC processor IP to GlobalFoundries for $450M.
We also dig into Synopsys' balance sheet—including over $6B in net debt, dilution, and flat free cash flow per share—wrap with six reasons it fell behind Cadence, and run a reverse DCF to see what growth the market is pricing in at ~$415.
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Disclaimer: For educational and general informational purposes only. CSI holds shares in Synopsys and Cadence. Affiliate links may be used.