AI software peers (SNPS) news that moved the stock

What happened

Cadence Design Systems reported third-quarter results late Monday that beat Wall Street expectations and raised its full-year outlook. Adjusted earnings came in at $2.11 per share on sales of $1.63 billion, versus FactSet consensus of $2.05 per share on $1.61 billion; earnings rose 9% and sales surged 22% year over year. For the full year, Cadence now expects adjusted earnings of $8.40 per share on sales of $6.4 billion at the midpoint, up from $8.10 per share and $6.3 billion three months ago (versus $7.14 per share and $5.3 billion last year). CEO Anirudh Devgan cited broad-based momentum, expanding technology leadership and a record backlog, and shares rose more than 2% in after-hours trading.

What happened

Synopsys announced two landmark deals Wednesday (Sep 30). First, a strategic partnership with OpenAI to develop 'GPT-Synopsys,' a specialized frontier model trained on Synopsys' electronic-design-automation technology to optimize chip layouts — OpenAI co-founder Greg Brockman said it would shave 'weeks and months' off design cycles — with OpenAI paying a training subscription fee and the companies sharing revenue under a multiyear agreement; they are already in talks with leading semiconductor customers. Second, a multi-year agreement with Amazon Web Services worth more than $1 billion for custom-silicon IP, making AWS the lead customer for Synopsys' expanded license-plus-royalty IP business (payments rise with production), while Synopsys adopts AWS cloud services and Amazon Bedrock. Synopsys shares climbed nearly 5% Wednesday and were up ~11% early Thursday.