Don't think it's the former (for a welcome change). Here's what the Synopsys CEO actually said:
“Our results were primarily impacted by underperformance in the IP business as we had the expectation of deals that did not materialize, driven largely by the following three factors: one, new export restrictions disrupted design starts in China, compounding China weakness; two, challenges at a major foundry customer are also having a sizable impact on the year,” Ghazi said on a call with analysts. “And finally, we made certain road map and resource decisions that did not yield their intended results.”
So point #1 affects EDA as a whole. #2 (is this Intel ?) might only affect SNPS. #3 (poor investments/execution) is SNPS specific. Hard to see why Cadence wouldn't also be affected by #1 (equally in China, also in the IP business).
I also wouldn't be surprised if we haven't been through a one-off design (and associated EDA licence) surge with everyone piling into AI chips and a shake out coming when the long term winners and losers emerge. I distinctly recall every man and his dog trying to get into wireless processors a few decades ago.
Also full year earnings forecast cut from $15.20 to $12.80. So a 17% forecast earnings drop and a 30% share price drop. Not completely crazy.
Once again, I do find myself asking how companies get their forecasting quite this wrong (as Intel repeatedly did in the last few years). But then I need to remember the DJT volatility multiplier. Who can plan ahead with that sort of instability ?
