Why is Synopsys stock tumbling today?

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source Electronic Design Automation tools — entirely circumventing the proprietary software that sits at the heart of Synopsys’s business. The demonstration produced a functional 4mm2 die running at 100MHz on the Nangate 45nm Open Cell Library, raising an immediate question mark over the bull thesis that surging AI chip complexity would perpetually drive demand for Synopsys’s licensed toolchains. A secondary pressure point stems from a Reuters report published July 7 that has continued to weigh on the stock: Synopsys notified more than a dozen major chipmakers — including Samsung Electronics, SK Hynix, Kioxia Holdings, and Qorvo — of its intention to phase out a portfolio of manufacturing process control software products, including its Equipment Engineering System and Fault Detection tools, as it redirects resources toward higher-margin AI-focused design businesses. Analysts at...