This AI Stock Fell After Doubling Down on Its 2023 Growth Outlook; Time to Buy?
Chip design software company Synopsys' (NASDAQ: SNPS) stock price heated up to kick off the new year. Until the recent quarterly earnings report, shares advanced nearly 20% in 2023 and rallied well over 30% from recent lows for the semiconductor space in October and November 2022.
The company met its growth expectations in the latest quarter and reiterated its rosy outlook for the rest of 2023. Nevertheless, investors were disappointed that the AI race heating up between big tech didn't result in a near-term financial upgrade from Synopsys. Synopsys shares gave back some of their recent run-ups following the quarterly update. Is this a buying opportunity for investors?
Synopsys, along with its peers Cadence Design Systems and Mentor (now a subsidiary of German industrialist Siemens, sits at a critical choke point in the semiconductor industry. It's the leader in electronic design automation (EDA) software, used by semiconductor designers and manufacturers. This represents about 65% of Synopsys' revenue.
Source Fool.com
